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Citi Mortgage Principle Reduction

Discussion in 'CitiMortgage' started by sophie24, Oct 22, 2008.

  1. sophie24

    sophie24 LoanSafe Member

    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.

  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    The modifications are given by the investors.........so you would need to ask Citi if the investor on your first is doing principle reductions as an option for modification of your loan.

    For the appraiser you should be able to file a complaint with the Real Estate Commission in your state, or they would be able to direct you to where you can file a complaint.
  3. sophie24

    sophie24 LoanSafe Member

    Thank you Cat for your reply. I guess I don't quite understand what you mean by the modifications are given by the investors. Citi Mortgage holds both are first and second mortgages. Aren't they the ones who could decide if they would reduce the principal amount?
  4. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Citi is the servicer on the loan..........so in most cases the approval of a modification or principle reduction would lie with the investor who is the holder of the mortgage note in the form of a mortgage backed security......these investors hire the servicers to handle the servicing of their portfolios.
    Citi would know if the investor on the loan is willing to do a principle reduction........

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