Success with CitiMortgage HELOC

[echo2]

Well, today I received a call from Citi Mortgage that our mod application had been approved. Our first payment is due in April. We can skip March's payment.

The whole process took about three weeks. We will be getting our loan mod papers via UPS this Friday!

Three weeks ago, I sent in my paperwork, financial information, hardship letter etc. to the mod department.

I called to follow up shortly after and inquire as to whether or not they had received my documents. I was told that they had and that if I didn't hear back by March 1st to give them a call.

I decided to email three people with Citi Mortgage. The CEO and two others from the office of homeownership preservation. I emailed them last Thursday and explained my situation to them. I got an email from one of them the next day letting me know that someone would contact me by end of business on Monday (two days ago). Sure enough, someone did. This person took financial information from me over the phone and asked me to fax him a hardship letter, my W2's and a pay stub.

The next day, Tuesday, the closer sent off our package to the underwriter. Today, Wednesday, we received a call from the closer letting us know that our application was approved and we were all set.

Our interest rate went from 13.6 to 2% for the next two years. After the two years are up, they will review our info again and determine whether or not another modification is needed. Our monthly payment went down by over 500.00 dollars!

I'm still stunned.

A few more details. We were never ever late on this loan. Nor have we ever been over 30 days late on our first mortgage.

Now, we are working on modifying our first which is set to reset on December 2008.

So, there you have it. it can be done!

Thank you for joining and sharing this great news........

I am so happy for you and your family...so happy.....


CONGRATULATIONS !!!!!!!!!!!

Was the 2% a typo...just curious as that would denote that this may not be realistic....

[loanmodwannabe]

Echo2 - Congratulations!! I'm just beginning my fight with Citi. Your win sure gives us hope!!!! So, could you please post the email addresses you used? I just sent out my QWR requests and they were received two days ago along with financial info, hardship letter, w-2s etc. I'm thinking I'll begin the call/fax/email "spam" campaign next. Any info you have would be greatly appreciated. For example, is your new rate really 2% short term?? Also, did they extend your term as well? Again, CONGRATS!!

[echo2]

Originally Posted by loanmodwannabe

Echo2 - Congratulations!! I'm just beginning my fight with Citi. Your win sure gives us hope!!!! So, could you please post the email addresses you used? I just sent out my QWR requests and they were received two days ago along with financial info, hardship letter, w-2s etc. I'm thinking I'll begin the call/fax/email "spam" campaign next. Any info you have would be greatly appreciated. For example, is your new rate really 2% short term?? Also, did they extend your term as well? Again, CONGRATS!!

Thank you. I still can't believe it!!

Yes, the rate is 2% fixed for two years. My payment went from 1,426 to 830.00 a month. We discussed a 6% fixed for 30 years, which would have extended the term date by 15 years. That's what I asked for and was hoping for and that's what my loan officer proposed to the closer who then submitted it to the underwriter. However, the underwriter felt that given our circumstances, they were not quite ready to change the term dates. He stressed that they would reevaluate at the end of the two years and if the housing market and our specific situation had not improved, they would then consider a long term modification.

Of course I REALLY wanted the long term modification but you know what, I'm happy with this, for now. It gives us time to improve our situation and get our butts in gear:-)

I will post email adresses later today when I get home, I promise.

[echo2]

Originally Posted by Poppy

Thank you for joining and sharing this great news........

I am so happy for you and your family...so happy.....


CONGRATULATIONS !!!!!!!!!!!

Was the 2% a typo...just curious as that would denote that this may not be realistic....

No, the 2% is not a typo. It's fixed at 2% for two years. Once the two years are up the rate will go back up to 13.6 unless we can refinance or get another modification. The underwriter was not ready to offer us a long term mod. The closer explained that they really don't like modifying the term unless the situation is dire. He also told me that they can't modify a long term mod more than once but they can modify a short term mod as needed. So, his advice to us was to take the short term mod and then reapply for a long term mod in two years (that is, if our situation has not improved by then).

So that took the obligation back to the original teaser rates that were being offered at the onset of most of the HELOC's....witht the cost of Fed funds, they can afford to do that and Fed funds are going to stay down for a long, long time.

The 6.0% rate on a fixed rate Second if they offer it again....jump on it, that is a incredible rate for a Second Mortgage with anyone in today's market. Certainly if they offer that again...take it.

[echo2]

Originally Posted by Poppy

So that took the obligation back to the original teaser rates that were being offered at the onset of most of the HELOC's....witht the cost of Fed funds, they can afford to do that and Fed funds are going to stay down for a long, long time.

The 6.0% rate on a fixed rate Second if they offer it again....jump on it, that is a incredible rate for a Second Mortgage with anyone in today's market. Certainly if they offer that again...take it.

believe me, we will take it! We are trying to get them to include language in the paperwork that will state that a 6% fixed 30-year term will be re-considered at the end of the two-year 2% term. That way, we will have something on paper, directly from them, when the time comes to re-evaluate the terms.

[echo2]

I emailed all three at the same time. I kept my email short and to the point and included my property address and loan number.

good luck!

[JulesK]

CONGRATULATIONS on your Loan Mod! I am so impressed at how quickly you were able to get this done. Wow, 2% for 2 years, that's awesome. Thanks for the info re: short term loan mods vs. long term loan mods. I will have to keep that in mind when, hopefully, I get the call from Citi. Congrats again!

You may be hard pressed to get them to commit to that rate down the road, the cost of money today is not what the cost of money tomorrow will be. That issue is the crux of these HELOC's and HELOAN's as far as how they are set up. Seconds are inherently higher in rate due to the risk associated with the CLTV that underpins them. So the rates on the Seconds whether variable or fixed is higher due to the higher risk exposure combined with the costs of short term money...they are more sensitive to short term funds costs than a first as the firsts are tied to longer bond issue yields.