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Citi HELOC Settlement

Discussion in 'CitiMortgage' started by wayunderwater, Aug 29, 2010.

  1. wayunderwater

    wayunderwater LoanSafe Member

    I will keep this short and hope it helps others in similar situations.

    My wife and I had our income reduced drastically, had a child, and the value of our house declined about 50%. We have a first with Wells and had a HELOC (2nd) with Citi. The house is worth about $400k and we owed $200k on the second and over $600k on the first. We tried for all sorts of modifications while remaining current but nothing was working. We stopped paying and decided it was better to walk away if we could not work something out.

    I continued to send my settlement offer to the settlement department which is completely separate from the collections department in my understanding.

    I was told by numerous reliable sources outside of Citi that if we went past 6-months late, our loan would be sold to collections and that collections people are harder to deal with so just before it went 6-months late we made one payment. After fighting with Citi's collection people for the entire time and continuously being told that they would not settle and this would be with me forever, I got a call from a real person in the settlement department who had my recent settlement offer in front of her and wanted to talk. I had to send in all of my current financial info again. After reviewing it, she called back we reached a settlement agreement for approximately (just under) 10% of the balance of the loan. I received her letter, had our attorney review it to be sure there was no future liability for the deficiency and wired the money. I was completely nervous that something would go wrong, but sure enough, they received it and I received full reconveyance of the deed. I received a 1099c for the full balance of the loan minus the settlement. It is reported on my credit report as paid in full for less than full balance.
  2. rocketman

    rocketman LoanSafe Member

    Would you mind posting the settlement physical address or how you found it?
  3. wayunderwater

    wayunderwater LoanSafe Member

    I am pretty sure I initially got the settlement department information from the collections department.
    Here is where my settlement went:

    <O:p</O:p1000 Technology Drive MS 514</ST1:p<O:p</O:p
    Loss Mitigation Prospector<O:p</O:p
    O’Fallon, MO 63368

    I hope this helps.
  4. kevhenn54

    kevhenn54 LoanSafe Member

    This is really good info, could you answer a few questions?

    Did you use an attorney for the negotiations or just the review after the settlement was offered.

    Is the address below the place where all settlement offers are submitted? Are their forms ect or a request letter?

    What documents did they ask for?

    Did they appraise the property?

    Any other details that might be helpful?

    Any chance We could talk for 5 minutes? Or e mail? Let me know.


  5. wayunderwater

    wayunderwater LoanSafe Member

    Hi Kevhen,
    Hopefully the following will be helpful. I would rather post here for everyone to read because others may share your concerns and I don't have a lot of free time to contribute...
    I used an attorney for advice along way so I knew exactly what remedies the bank had and what options I had. I suggest you do the same because every situation is different.

    I do not know the details of the address provided other than it is the address that was given to me and that worked for me.

    I had to submit all documentation many times including pay stubs, bank statements, hardship letters, tax return acccess, etc.

    A realtor contacted me saying they were hired by my mortgage company and needed to come in to take photos and give a Broker Price Opinion (BPO) for the property. They would not say which lender so I do not know if it was for my 2nd with Citi or 1st with Wells.

    Otherwise, I have heard that with Citi it is critical not to let the loan go past 6 months late because they will charge it off and sell it to collections. Aparently collections companies may be more difficult to deal with (although the banks are not easy). So I paid one month while we were negotiating to keep it from going 6 months late. Just after I settled, I received a call from a collections company who had my info and wanted to see when I planned to pay. I had to submit my settlement verification to them and they stopped calling.
  6. kevhenn54

    kevhenn54 LoanSafe Member

    I submitted my request today. Here is my situation; I am underwater 135k, My house is worth maybe 300k, my BPO came in at 303 and I have a 1st for 252 and a second for 185. I offered a little less than 10% to settle the second. Lets see what they come back with. I will keep everyone posted here. Is there any concern the banks monitor these websites? Just curious.
  7. wayunderwater

    wayunderwater LoanSafe Member

    Good luck Kevhenn. Keep us posted.

    This is a public forum so I would assume that everyone is reading these. If the banks wanted to deal with this enormous mortgage problem they could learn a lot from reading this forum but it does not seem like they are looking for solutions. Currently it seems they want to put off solving the problem.
  8. chopi

    chopi LoanSafe Member

    Quick Question on 1099


    You said you have received 1099C already? Really? I am in same situation as yours and was settled in Aug but i haven't received that yet.
    Do you know if you need to pay tax on the income? For you it could be as much as $180k????

  9. kevhenn54

    kevhenn54 LoanSafe Member

  10. wayunderwater

    wayunderwater LoanSafe Member

    Yes I received my 1099c. It was for 2009.
    The link that Kevhenn sent is good for review of tax liability because every situation is different. Tax Professionals should be consulted because it is complicated and you do not want to be on the wrong end.
    Good luck!
  11. kevhenn54

    kevhenn54 LoanSafe Member

    CFMC ran my credit report today with Trans Union.

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