Does anyone know if CitiMortgage will consider reducing the principal balance on a Florida Mortgage if it is upside down? We currently have a first and a second mortgage with Citi that have a combined total of about $570,000.00 According to the property appraiser where we live, our property is currently only worth $314,000. A similar home down the street from us, with the exception that it does not have a swimming pool, just recently sold for $215,000. There are also currently 2 foreclosed homes on our street, which have not sold.
I previously asked Citi if they would consider combining our 1st and 2nd mortgage into one and reducing the interest rate to 5% so that we could afford our payment. We are not behind at all currently in our payments. Citi said that they could not do that, but they did agree to reduce the interest rate on our 2nd mortgage from 8.885% to 6% and extend the term to 40 years. This did help with reducing the payment, but it has not been enough relief. They told us that they would not reduce the interest rate on our first mortgage because they felt that it was already low enough at 6.2%. The mortgage balance on our first mortgage is actually more than what our home is worth currently. I have sent another letter out to Citi trying to get some type of additional relief, but am still waiting to hear back from them. I feel that we were really taken advantage of by the mortgage broker who got us our second mortgage and got an appraiser to appraise our property at $740,000 only a year ago.
If anyone has any suggestions or knows what else we may be able to do, please let me know.