Loan Mod/Settlement questions

[Focused]

Hello all! Thank you for this wonderful site, I have been lurking and reading for a week now and have learned some valuable information.

My story: In Feb 05, we bought a home for 183K on 80/20 interest only thru Citimortgage. Although we were a single-income family, we had very good credit and stable employment. The payments on the first would go up around $400 in 2/10, but we were told not to worry.....we will have no trouble refinancing. I think you all know how this story ended.....

We owe the same 183K living in a neighborhood full of short sales and foreclosures and would be lucky to get $140K in a short sale, but 130K is more likely based on recent sales in the area. We are current on the 1st and 2nd, but keeping current is a monthly struggle - no raises and bonuses at my husband's work and threats of layoff for quite some time and medical costs have increased. Come Feb 2010, we will not be able to make the increased payment and will become past due.

Question: I would like to start the loan mod process on the 1st and a settlement (10% max) on the 2nd now, but I have been told and heard thru the neighborhood grapevine that your lender won't even deal with you until you are at least 2 months behind. Is this always true?

Thank you and good luck to all of us!

[Evan Bedard]

Hi focused welcome and thank you for joining.

Question: I would like to start the loan mod process on the 1st and a settlement (10% max) on the 2nd now, but I have been told and heard thru the neighborhood grapevine that your lender won't even deal with you until you are at least 2 months behind. Is this always true?

Its true that is is much more difficult to get a loan mod while current but it is not impossible. There are a few homeowners here who have achieved a mod recently without missing a single payment..

[ksiva01]

> There are a few homeowners here who have achieved a mod recently without missing a single payment..

Is this means delay and making the 2nd loan payment or completely stop making the payment. ?
How we catch up in the following month after stopping the payment. ?

I reached my limit, I am planning to stop the payment, I am hanging-in there, since the bank says
they already identified loan mod program for my first loan.

Since investor is same, I am afraid,
Should I stop or not ? If I stop making the payment what is the impact, etc ?
or atleaset should I stop second loan, if I do what is the impact on my first loan mod. ?, etc

Any input ?

thanks
KS

[Focused]

Originally Posted by ksiva01

> There are a few homeowners here who have achieved a mod recently without missing a single payment..

Is this means delay and making the 2nd loan payment or completely stop making the payment. ?
How we catch up in the following month after stopping the payment. ?

I reached my limit, I am planning to stop the payment, I am hanging-in there, since the bank says
they already identified loan mod program for my first loan.

Since investor is same, I am afraid,
Should I stop or not ? If I stop making the payment what is the impact, etc ?
or atleaset should I stop second loan, if I do what is the impact on my first loan mod. ?, etc

Any input ?

thanks
KS

I'd like to know the answer to these questions as well, particularly about stopping payment on the 2nd. My second is completely unsecured, but does it have to be very delinquent before Citimortgage would even consider settling it? I also have concerns about the 2nd being delinquent making a mod on the 1st more difficult.

This is all frustrating to think of and I haven't even started the process yet. Sad too.