Citi Mortgage & Citi Financial

[LoanModMan]

Tell us your horror stories, & success stories. Post your ongoing saga and ask for advice.

[Priscilla]

Citimortgage denied our loan mod request in August saying that we are above the 31% income for the HEMP program and would consider us for more traditional programs, but when called the check, they said they accidently closed our file and we need to reapply.  I am ready to do that again and noticed the application ask "why are you behind or why do you think you will be behind?"  We are still current and was wondering if you have seen Citi modify a loan that is still current.

[LoanModMan]

As is the case with most servicers it is important to find ouy if the investor in your loan  will modify a current mortgage.

The best way to do that is to call and ask directly, does the investor on my loan modify mortgages that are current?

I would begin with something like this.

I am having a very hard time making my payments. We have to borrow on credit cards every month to make ends meet. I really need some help with my mortgage before we go under. Is borrowing from my credit cards helping me? Is keeping my payments current hurting my chances of getting help? Will the investor in my mortgage help me if my payments are current? Who is the investor in my mortgage?

[Priscilla]

Thanks.  I am going to work on this as soon as I am done with the financials for Indymac.  I am 2 months behind on the 2nd with Chase. Should I try to stay current on the 2nd until I could work with the 1st?

[LoanModMan]

Are you behind in payments on the 1st?

[Priscilla]

No, I am still current on the 1st.

[SoCalGal]

It makes me sad to hear about borrowers going further into debt on credit cards to make their mortgage payments.  Unless you can negotiate for a "paid as agreed; never late" notation on your credit profile (very hard to do!), you're going to get a credit ding anyway as a result of a loan modification.  Why go into debt--which higher repayments will offset monthly mortgage payment relief--when simply surrendering (temporarily not making the payment) will (a) get your lender's attention; and (b) get you relief from negative cash flow.  Yes, the unpaid interest will be added to the loan balance but, in my opinion, the temporary monthly mortgage payment relief is worth it.  You can't come out of this totally unscathed (credit-wise), but you don't have to be decimated, either.