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Is a second Mod possible with citimortgage?

Discussion in 'CitiMortgage' started by rosalinda, Aug 11, 2011.

  1. rosalinda

    rosalinda LoanSafe Member

    After reading most of today, i havn't seen any threads about second mods. With loansafe's help, i was able to modify my loan in April 2009. but even then, my DTI is still at 40% after the mod. Now the house is underwater with first loan balance of $575,000 with interest rate at 4.88% and second LOC of $10,000. The house value is about $540,000 (that’s what the next door is foreclosed at and is still on the market.

    I’m seeking into alternatives available to save my home. Will CitiMortgage grant a second mod? What other options do I have? I worked hard for this house and lost nearly $200,000 to date from our purchase price 6 years ago. Please help me.
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    rosalinda,


    Was the initial modification under HAMP? If not, you may be able to apply for a modification under HAMP if you meet the following requirements:

    To apply for a modification under HAMP, you must:

    • Be the owner-occupant of a one- to four-unit home.
    • Have an unpaid principal balance that is equal to or less than:
      • 1 Unit: $729,750
      • 2 Units: $934,200
      • 3 Units: $1,129,250
      • 4 Units: $1,403,400
    • Have a first lien mortgage that was originated on or before January 1, 2009.
    • Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income.
    • Have a mortgage payment that is not affordable due to a financial hardship that can be documented.
    If you answered YES to all of these questions, you may be eligible for a modification under HAMP.
  3. rosalinda

    rosalinda LoanSafe Member

    Cat,

    Thanks for the information.

    I don't think it was a HAMP because my loan is a investor owned? How do I know for sure?

    when it was modified in april 2009, the remaining term was 26.5 years out of 30, so it was originated before Jan 1, 2009.

    I looked up the Making Home Affordable website, https://www.hmpadmin.com/portal/programs/hamp.jsp
    the very first criteria is "borrower is delinquent on their mortgage or faces imminent risk of default" is this when the 61 day delinquency come in play? so there is no way of avoiding a credit hit? can citimortgage do something if i give them the heads up before delinquency?
  4. Cat Damiano

    Cat Damiano Mortgage Wars

    If you meet all of the other requirements, imminent default just means that default is reasonably foreseeable. Members who were in this position have had a harder time with the approval process because being able to continue the payments at the regular amount would make it hard to show hardship.
  5. rosalinda

    rosalinda LoanSafe Member

    Thanks agian. For now, i am just not sure if the first mod was under HAMP...the most crucial criteria? due to the fact that it was only modified to 40% not even close to 31%. does this hint that it wasn't under HAMP?
  6. Cat Damiano

    Cat Damiano Mortgage Wars

    It doesn't sound like HAMP if it is at 40 percent. From everything that has been posted, you should be able to apply for the HAMP modification.
  7. rosalinda

    rosalinda LoanSafe Member

    Just started the process with Frank. Got a same day response both from Frank and an assigned rep. Brondy. Good start so far.
  8. Cat Damiano

    Cat Damiano Mortgage Wars

    That is good to hear. Good Luck with the modification! Keep us posted.
  9. TomEason

    TomEason LoanSafe Guide Staff Member

    rosalinda

    Thanks for your posts. You're pursuing the recommended path in dealing with your 1st. Forget about your 2nd until your 1st is permanently handled to your satisfaction. Your 2nd won't FC because, although I don't know the value of your home, based on your statements, they are underwater.

    Once you get your 1st handled, then you can turn your attention to your 2nd. FYI, loan mods on 2nds are seldom a good deal. A settlement is almost always a better way to go.

    When the time is appropriate, you might visit this thread and start by reading post #1. www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-62.html

    Good luck to you.
  10. Cat Damiano

    Cat Damiano Mortgage Wars

    Well that in addition to the fact that a 10k HELOC would probably not want to foreclose with a 575k first lien. Also on a side note with the unpaid principal balance for a 2MP second lien having to be 5k or above at the time of the modification, or payments above $100, for a 10k balance, they may just offer to extinguish if the first is able to be modified under HAMP.
  11. rosalinda

    rosalinda LoanSafe Member

    Thanks Tom. Correct. My focus is on my first, because that's what is stretching me out.

    I purchased this house at $728K in 2005. Even though it is underwater, i have full intention of keeping it for the good schools for my young kids. In 2009, i was able to save my credit while being modified. So i still have sparkly credit. Apparently, it may not work this time. I am not delinquent as of today. So as I am gathering all the documents, I'm just thinking if I shall delay the process for two months? any suggestions on timing?
  12. rosalinda

    rosalinda LoanSafe Member

    Cat,

    I am not following what you said in your last post. my second is not with citimortgage. it's with etrade.
  13. TomEason

    TomEason LoanSafe Guide Staff Member

    rosalinda

    If your credit is very important to you and since you're 2nd is so small, you might consider just paying it. If you settle it, you'll save $$, but in return for a derog on your credit.

    You'll figure out what's best for you. Good luck!
  14. Cat Damiano

    Cat Damiano Mortgage Wars

    I am aware that you are trying to achieve a second modification on your first that is with Citi. I was meaning that the second is such a low amount that if you are granted the modification with Citi, they may just send notice to extinguish that lien.
  15. rosalinda

    rosalinda LoanSafe Member

    Thanks for the support. Just got another call from Brondy. Looks like I am in good hands.
  16. Cat Damiano

    Cat Damiano Mortgage Wars

    Good Luck!! I hope they are able to work it out soon.
  17. rosalinda

    rosalinda LoanSafe Member

    Full package sent 10/6/11.
  18. Cat Damiano

    Cat Damiano Mortgage Wars

    rosalinda,


    Sounds good! Keep us posted on how it goes.
  19. rosalinda

    rosalinda LoanSafe Member

    Thanks. Cat.
    It is with Underwriting as of today.
    I do not know what the new procedure is. I will follow up next week.
  20. Cat Damiano

    Cat Damiano Mortgage Wars

    When in underwriting, servicers must determine the borrower’s eligibility for a modification using information obtained in the Initial Package and subsequently verified. Servicers are required to complete their assessment of borrower eligibility and notify the borrower of the eligibility determination within 30 calendar days of receiving all required borrower documentation.

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