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Citi Mortgage and reworking mortgage


djmacc
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Has anyone had any experience with citi mortgage in reworking their mortgage either by refinancing their current interest rate or lowering the amount of the loan based on falling real estate value? I have read that inspite of all the promises by the Feds to help homeowners it is not really happening.

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I had a terrible time although I do know so much has changed maybe you will have better luck..

I started calling Citimortgage over a year ago when I know things were going to get difficult was told they could do nothing until I was 90 days late..at one point I did one of those crazy agreements for one past due month and couldn't do it plus I did not trust it...I filled out the appropriate forms for help and waited...I was able to make a payment before it came through and called to do so was told that unless I paid two months they wouldn't take my payment...so I did...ended up calling Hope Now after trying repeatedly to call the modification department and getting no where but voice mail or disconnected...Hope now told me not to even attempt to get caught up and wait the 90 days...at the 90 day mark with no more info from Citi or Hope Now I started calling again non stop...again I eitehr got voice mail with no return calls, was disconnected or transfered to India...They did eventually call me I was able to get a modification unfortunately it did not work for me...

They coached me on what to claim as my income (were self employed) and I could not garantee my income would be $4000 a month consistantly I had to say that to get anything...they reduced my interest for 24 months 2% resetting 1% every 12 months with payments to resume in two months...What they didn't tell me was that I was still responsible for any late fees' etc so needless to say my first statement came with an additional $300. Then apparently their wasn't enough in my escrow account making my modified mortgage higher than it was to begin with..so I started thinking about this reset..knowing that within 2 years I would be paying over $2000 a month for a 1400 sq foot home thats worth 1/2 of what is owed I decided to walk...

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I had a terrible time although I do know so much has changed maybe you will have better luck..

I started calling Citimortgage over a year ago when I know things were going to get difficult was told they could do nothing until I was 90 days late..at one point I did one of those crazy agreements for one past due month and couldn't do it plus I did not trust it...I filled out the appropriate forms for help and waited...I was able to make a payment before it came through and called to do so was told that unless I paid two months they wouldn't take my payment...so I did...ended up calling Hope Now after trying repeatedly to call the modification department and getting no where but voice mail or disconnected...Hope now told me not to even attempt to get caught up and wait the 90 days...at the 90 day mark with no more info from Citi or Hope Now I started calling again non stop...again I eitehr got voice mail with no return calls, was disconnected or transfered to India...They did eventually call me I was able to get a modification unfortunately it did not work for me...

They coached me on what to claim as my income (were self employed) and I could not garantee my income would be $4000 a month consistantly I had to say that to get anything...they reduced my interest for 24 months 2% resetting 1% every 12 months with payments to resume in two months...What they didn't tell me was that I was still responsible for any late fees' etc so needless to say my first statement came with an additional $300. Then apparently their wasn't enough in my escrow account making my modified mortgage higher than it was to begin with..so I started thinking about this reset..knowing that within 2 years I would be paying over $2000 a month for a 1400 sq foot home thats worth 1/2 of what is owed I decided to walk...

Thanks,

I am hoping since the latest rule changes that they can do better with me.

Thanks for your experiences.

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  • 3 weeks later...

Responding to your post - I actual work for an attorney firm negotiating loan modifications. Due to the rules of this forum, prevents me from mention my firms name.

When it comes to loan modifications - every mod is different. Factors such as location, rate, principle, value, months late, existing loan terms, the actual hardship, are looked at individually. Modification restrictions are different from one lender to another.

When people ask other people what happened on other peoples modifications, they need to realize it's most likely they are not going to get the same results.

In Presidents O'Bama speech to the country a few months ago, he announced help for home owners. What he didn't say was only 1 in 851 people will actually qualify for this program.

Another thing that is apparent, these goverrnment loans are 3 to 5 year Arms, meaning that will go adjustable in a few years. If a person is in a bad situation now, where will they be in a few years? All this program is - is a band aid, it doesn't fix the problem.

my $00.02 cent

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Responding to your post - I actual work for an attorney firm negotiating loan modifications. Due to the rules of this forum, prevents me from mention my firms name.

When it comes to loan modifications - every mod is different. Factors such as location, rate, principle, value, months late, existing loan terms, the actual hardship, are looked at individually. Modification restrictions are different from one lender to another.

When people ask other people what happened on other peoples modifications, they need to realize it's most likely they are not going to get the same results.

In Presidents O'Bama speech to the country a few months ago, he announced help for home owners. What he didn't say was only 1 in 851 people will actually qualify for this program.

Another thing that is apparent, these goverrnment loans are 3 to 5 year Arms, meaning that will go adjustable in a few years. If a person is in a bad situation now, where will they be in a few years? All this program is - is a band aid, it doesn't fix the problem.

my $00.02 cent

Thanks for your input. I did not know they were putting people into ARM loans. I have read they were reducing mortgages based on the depreciation of the home. Although this may be a rare event to they use ARMs to accomplish this as well?

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I know of someone who is going through a modification. They paid the lender a $500 fee and they dropped their interest rate from a high floating rate to 6% fixed. None of the principal was forgiven- just the interest rate reduction.

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I had a girlfriend who just did a loan modification, and the package was quite surprising:

Her lender had been Countrywide. She had not made a payment since Nov 2008.

Her payments dropped from $2600 to $1200, 25% of principal was forgiven, interest rate dropped to 2.2%.

She did not use a professional company (I advised her against that), and spoke directly to the customer service reps at the mortgage company. She submitted W-2's and tax returns to prequalify, and get the payments down to 31% of income.

Loan modifications are happening! Just don't use a professional service.

She is now back in her home.

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Her payments dropped from $2600 to $1200, 25% of principal was forgiven, interest rate dropped to 2.2%.
I am curious as to the details of this. Does the lien remain in the full amount? what if they wanted to pack up and move in a few years and there is equity?
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I had a girlfriend who just did a loan modification, and the package was quite surprising:

Her lender had been Countrywide. She had not made a payment since Nov 2008.

Her payments dropped from $2600 to $1200, 25% of principal was forgiven, interest rate dropped to 2.2%.

She did not use a professional company (I advised her against that), and spoke directly to the customer service reps at the mortgage company. She submitted W-2's and tax returns to prequalify, and get the payments down to 31% of income.

Loan modifications are happening! Just don't use a professional service.

She is now back in her home.

Every situation is different - take for example a mature lady (64yrs), being talked into a cash out ($200k) "Stated" refinance 2/28 ARM. This is considered predatory. She needs a professional to help her.

Another - a man that didn't pay his mortgage for almost a year. His lender Indymac wouldn't talk to him. He called me for help - he had three kidney transplants, the first two his body rejected. I explained his case to our legal department. Since he had sale date, we stopped the sale, with all the arrears on the back end. He had to come up funds to pay taxes and insurance, my boss said we are in the business to help people - we gave him back the fee.

Another which involved a forensic mortgage audit. During the years between 2002 and 2007. It is estimated that over 85% of mortgages funded during this time period contain some type of lending violation. We have a mature man who has all his original paperwork indicating his loan was a 30yr fixed rate. His loan had changed banks a few times. every time he called, no one could give him a straight answer. We ordered paper work from the title company confirming it was a fixed rate, now we are negotiating with the existing mortgage company because they have it at an adjustable.. Chances are they will come back offering a fixed rate at 2.5%.

Another example - a lady in LA that was affected by a hurricane last year. Her home was damaged, the insurance company sent a check for $30k, it was made out to her and the bank. She sent it to her bank, and the bank kept it. She went into financial hardship paying for the repairs. Behind on her payments,

Another example which it common - a person is a couple of months behind, they contact their lender. Who offers them a reduced interest rate, but unaware to the homeowner puts the arrears on the front end of the loan. A month later their payment went down, but the second payment made the total payment un-payable. They try and contact the bank, they say sorry we can't help you.

Most modifications an important note - a person is in a probationary period for the next year. If they miss a payment by one day, a lender can start the foreclosure process.

Yes there are people who have done their own modifications, thinking they got a good deal. In the case where in the modification benefited the lender. However imagine if they would of used an attorney - getting a modification that benefited them.

Should they pay for this service? I have personally seen whats entailed in doing a modification. From chasing different representatives, being on hold for eight hours a day for five days, for one file... Negotiating "other expenses such as food, electricity, gas, insurance, more.. Doing modifications are not easy. It is rare - if a modification cannot be done, we have to refund the fee.

Yes I agree with you that Loan Modifications are happening! As far as your girlfriend she was lucky, her loan must of been a Freddymac or Fannymay loan. This was a small window (1 person in 851), where homeowners fell into O'Bama's plan. This is an ARM, where she is going to have to refinance in the next few years. Hopefully she is planning to send extra into the payments to pay down the principle. Because in a few years when this goes adjustable, she's going to be in the same position she's in now. Yes the government is saying it is a good program that is designed to help out homeowers.

What they are not saying - they are trying to stimulate the economy by temporarily reducing interest rates on sub prime homeowners, chances are they are going to spend their savings (the government is betting on that - they need to get this economy moving)....:!:

.

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I am very happy to hear that at least someone was lucky with a succesful loan modification. I have been trying to negotiate a loan modification with Litton Loan Servicing through a third party company since november of last year. So far my file is still under review. In January I received a sale date and had to make a deposit of $5200.00 in order for them to stop the sale which was scheduled for February. I paid the money and the sale date was postponed, however I was offered a forebearance agreement with terms that were utterly ridiculous! In fact the monthly payment would be more than the initial mortgage payments that I could not afford. I did not accept the agreement and reapplied for consideration pursuant to the Making Home Affordable Program. Litton's response was to reset the sale date even while they are saying that the file is being reviewed. I requested a postponement of the new date. They have extended the sale date by thirty days and my file is still being reviewed....

I am just waiting to see what happens next. Maybe I will apply for a deed-in-lieu of foreclosure or short sale if the loan modification is denied. I will update the forum as soon as I get to the next stage as maybe someone may be able to glean something valid from my experience.

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I am very happy to hear that at least someone was lucky with a succesful loan modification. I have been trying to negotiate a loan modification with Litton Loan Servicing through a third party company since november of last year. So far my file is still under review. In January I received a sale date and had to make a deposit of $5200.00 in order for them to stop the sale which was scheduled for February. I paid the money and the sale date was postponed, however I was offered a forebearance agreement with terms that were utterly ridiculous!

In fact the monthly payment would be more than the initial mortgage payments that I could not afford. I did not accept the agreement and reapplied for consideration pursuant to the Making Home Affordable Program. Litton's response was to reset the sale date even while they are saying that the file is being reviewed. I requested a postponement of the new date. They have extended the sale date by thirty days and my file is still being reviewed....

I am just waiting to see what happens next. Maybe I will apply for a deed-in-lieu of foreclosure or short sale if the loan modification is denied. I will update the forum as soon as I get to the next stage as maybe someone may be able to glean something valid from my experience.

Dynamic girl

I understand what you are going through, Litton Loans is one of the worst mortgage companies to deal with for a modification.

As far as the $5200 you paid, this most likely was for back taxes they paid on your behalf. Many people do not understand the lender is actually 2nd position when it comes to lean-holders position. If you taxes are not paid, the government can come in and do a government auction on your home. Since you lender has more at stake and is in 2nd position, they will pay your taxes for you.

Most loans can only be modified once a year, some loans only once in the loan's lifetime. As for the modified mortgage payment they offered you, they are putting your arrears on the front end of your loan. This is one the items that need to be negotiated when applying for a modification. Once your loan has been modified, it is very hard to change the new terms.

Regarding trying to do a deed-in-lieu since you had a sale date, which is determined after a court date, chances are to is to late to apply.

You could still possibly do a short sale, if you can find a party to purchase the property. Then you would have to negotiate what Litton Loans would accept as a payoff.

If you still want to keep you home - you could file chapter 13 bankruptcy. This will stop the sale. Before that - speak to the modification company that is doing your modification.

Demand action - ask what they do from you. Ask to speak with the mitigator working with your lender. Tell them you are going to contact your state Attorney General office, because they took your money and didn't do anything.

I'm curious what the out come is???

..

Edited by 2ndTimeAround
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  • 4 weeks later...

I've been trying to negotiate with Citimortgage for 4 months so far without success. I've been working with one of their "executive people" and a few weeks ago they gave me the impression that I would get the modification if I agreed to an escrow account for taxes and insurance. I do not currently have an escrow account. Now they are telling me that my debt and expenses are too high and they won't consider the modification unless I lower my expenses. I was 30 days past due for June because of am almost $4000 real property tax bill. My interest rate is 5.125% fixed for 30 years but I have been overextended on my unsecured debt. My relative attorney thinks I should file BK but I don't really want to do that unless I absolutely have to. Does anyone have any ideas or need more information to give me ideas?

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I've been trying to negotiate with Citimortgage for 4 months so far without success. I've been working with one of their "executive people" and a few weeks ago they gave me the impression that I would get the modification if I agreed to an escrow account for taxes and insurance. I do not currently have an escrow account. Now they are telling me that my debt and expenses are too high and they won't consider the modification unless I lower my expenses. I was 30 days past due for June because of am almost $4000 real property tax bill. My interest rate is 5.125% fixed for 30 years but I have been overextended on my unsecured debt. My relative attorney thinks I should file BK but I don't really want to do that unless I absolutely have to. Does anyone have any ideas or need more information to give me ideas?

I watched this this morning on CNBC - the number of people on the verge of losing their homes soared to 15% and experts don't expect it to peak until next year.

Citibank (from my mortgage days) was one of the worst banks when it comes to customer service. Calling up and and pushing button after button. You are lucky you actually have an "executive person" to deal with.

Six months ago it was easier , now it is getting harder and harder to qualify for a modification. It use to be 30 to 60 days for a mod to go through, now is min 4 to 5 months.

Many lenders operate under the 31% "Obama" rule. You either qualify or don't. (On paper) an example - person nets $6000 per month, has a house payment of $3000. Proves they have a hardship, can qualify for a reduced payment of $1860 for four years. On some homeowner's based in the 31% rule we have got interest rate down to as low as 2%. The secret is being able to prove enough income, a hardship situation and not having a lot of expenses. If a persons mortgage payment x 5% interest rate = 31% of their income, then the loan is modified to 5% interest rate. As stated previously - every situation is different,

Every time a lender does this, they get a government kickback. If you don't fall under the guidelines set forth by the government (they don't get reimbursed), you get turned down. The lenders are not giving away free loans. Litton Loans is one of these lenders. Again you either qualify or don't.

When people get turned down - they must either wait a certain amount of time before reapplying, or obtain an attorney. The problem with waiting it out, is they are going deeper into the hole.

FYI modifications - escrows are included with the loan, because of lien position. If you don't pay your taxes - example $5,000. The government puts a lien of the property, someone comes in a buys off the lien for $2000 and forecloses. The lender has no recourse. You see a lot of this on government auction websites.

As for your unsecured debt - I am surprised your "family" attorney doesn't know how to deal with this. Is he thinking about your best interest or is he thinking about whats in his wallet?

By filling a bankruptcy- will destroy your credit and it will be extremely hard to negotiate your debts once the BR goes through. If you go and talk with a bankruptcy attorney - they will talk you into one because that's how they get paid. A chapter 13 you will be making payments to a trustee, a chapter 7 washes the dept away.

Understand unpaid unsecured debt is very hard to collect on because it's unsecured. On your home they can foreclose, and a car they can reprocess, because it is a secured type of loan. On unsecured debt - they can scream at you, they call up and hang up, send you misleading paperwork threatening you. Very few attorneys will work trying to collect unsecured debt, because it can take up to a year to go to court. The morning of the court date, you file bankruptcy, and the attorney working on try to collect - doesn't get paid.

A chapter 7 appears to be an easy way out, I have talked with 100's of people after the fact, wishing they would of done it another way - a chap 7 puts you into a very deep hole. They are begging for help, asking for a lifeline.

There is another way, the secret is playing the game of knowing what to say, how to say, that you cannot pay towards the balance because the payments are to high. Mentioning (not doing) you are going into bankruptcy, and asking to settle for less. The problem with that is you will have to come up with a lump sum to pay them off.

What an attorney does that specializes in debt settlement - the client stop's paying the debtors. On escrow like account is set up, which the client makes monthly installment payments into the account. After 4 to 5 months enough money has accumulated. Then the attorney start negotiating. After 4 to 5 months of non payment, getting a call from a law firm, you bet they are willing to negotiate. I see this everyday, it works. The best I've seen - balances reduces to 15%, averaging between 30 to 40% of the original balance.

It is truly amazing on the number of people who do not know how to speak with a debtors legal department. Releasing information that will get them nowhere or turned down.

I have personally done this for myself, plus I work with clients saving them $10,000's in unsecured debt. You can do it to!!

...:)

Edited by 2ndTimeAround
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