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Citimortgage HARP denied due to "late payments" during HAMP pre-approval???

Discussion in 'CitiMortgage' started by jillian7982, Sep 10, 2010.

  1. jillian7982

    jillian7982 LoanSafe Member

    Back in June 2009 I had applied for the HAMP loan through Citimortgage and I was "pre-approved" and my trial payments began in July 2009. They processed my paperwork and I called them in October and they said I was denied. I had made four trial payments during this time and I was told that I would need to re-pay this money back (same story everyone has heard and gone through).

    I complained and spoke to a supervisor who put me on a forbearance plan over a 14-month period to payback the amount I owed. I was told to call in a few days before the payment was due and pay over the phone, which I did for about seven months. I ended up paying it all back in this timeframe, but then I come to find out that when I was calling in thinking I was making the current month's mortgage payment, it was actually for the previous month!

    I asked where all the additional funds were going that I was paying over my mortgage, which was for the amount I was supposed to "payback" during my trial payments. They said it was being applied to my principal balance!

    Well, I made an attempt to try to qualify for the HARP loan and they said I'm not eligible because there is a "code" that Freddie Mac sends on each loan when applying for HARP and if it's not there then you don't qualify. Citimortgage said they have nothing to do with this "code," so I called Freddie Mac and they said they have no idea what type of code this is at all and they don't do anything of the nature. Then, I call Citimortgage back and they said that I'm "probably" denied for the HARP because I have late payments (even though they really aren't late because they messed things up) and I would not qualify and to call back in a year.

    How is this possible? I need to know what my options are, so here is my background information:
    -owe $143,000
    -worth: around $121,000
    -interest rate: 6.375%
    -monthly payment: $1245.01 (includes escrow and PMI)
    -never been late, but due to the trial period payment drama, I show otherwise
    -Freddie Mac holds my mortgage
  2. jakelabry

    jakelabry LoanSafe Member

    Technically, you were late for those four months of the trial period. Anytime you are not paying the full amount they hold payments in a suspense account until they get a "full" payment and apply it - this absolutely throws you into the late column. Had you been given a permanent mod, they would have gone back and "fixed" all that but since you were denied it shows as late.
  3. jillian7982

    jillian7982 LoanSafe Member

    So, is that the end of the road for me? There's no other options in terms of the HARP program?
  4. jakelabry

    jakelabry LoanSafe Member

    I honestly don't know - one of the requirements of HARP is no late payments for 12 months and I don't think they will budge on that. Are you experiencing some form of hardship (lost equity doesn't count)? Is that why you applied for HAMP initially? What were their reasons for denying you the mod after the trial? Maybe it's possible you can qualify for an inhouse modification but that may mean going through the whole ridiculous trial period nonsense again.
  5. cititivo

    cititivo LoanSafe Member

    No, if you are eligible for an in-house mod you should NOT have to go through the trial payment period again. As for the reporting issues with your trial, you could pursue those but it might be more worth your while to try to get an in-house mod if you can demonstrate hardship.

    It doesn't hurt to ask them for it (the in-house mod), and even though it takes a while, it seems to not be as long as the HAMP process gets drawn out...
  6. Maurice Bedard

    Maurice Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    If your payments were misapplied to principal, you can get that fixed. You need to send a QWR- a qualified written request detailing that your payments were misapplied. You could do this by email, but the legal way is to mail it certified. I had payments misapplied to principal by Wells Fargo and it took a couple of complaints and someone telling me 'it is too much work' before I finaly got it fixed. I filed a complaint with the OCC and with my state AG. I never did any of it by mail or certified letter. Your mtg docs probably state that payments may not be applied to principal unless you request it in writing. RESPA rules govern this, and if they don't respond, they can face a fine.

    Getting that corrected may not help your HARP denial, but it could save you from having to make a payment at some point. In my case, I was already one month ahead, had just made a payment when my HAMP trial started, and they told me I had to make the HAMP trial payment even though I had just made the payment. After the HAMP trial, I was able to miss two full payments, and still be current.

    If there is any way to do HAMP instead of HARP, I recommend it. You will save all the fees, and also be eligible for the incentive payments.

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