Citi Mortgage has a heart after all

[BKVIGIL]

I filed Chap 7 in 2007 and was discharged in January of 2008. I included both by 1st mortgage with IndyMac and my 2nd mortgage with Citi in my bankruptcy. I did a ride thru and continued to make my monthly payments to both Indy and Citi on time.

When Obama came up with his plan to prevent foreclosures I applied to both banks and asked for relief. They both said NO WAY since I had included them in my Chapt. 7. At that point, I decided to heck with both of you and I will pay when I dang well feel like it - but before the late charges kick in.

To make a long story short, I received a letter from Citi Mortgage this morning by UPS overnite saying they are dropping my rate to only 3% on my second mortgage. My note was at 11.99% I guess they have a heart after all.

I thought I would share so maybe someone on this forum might benefit.

[AngelinaCat]

Thank you for sharing this. This is great news for you. I hope others will have this opportunity.

[dingdong]

Wow! That's a huge drop in rate. Congratulations!

[justplaintired]

Wow, that's good news. I have Citimortgage for my second and would love to lower my rate. We offered to reaffirm, but so far we haven't gotten any papers from them. We are current on second and first. First mortgage rate is good at 5.25, Citi is at 7.25. Not sure if we could get that lowered, wonder how we could? We are current right now, but wonder if they would be as nice to us?

Anyway, congrats, that has to be a great feeling!!

[BKVIGIL]

When I tried to reaffirm back in 2007 Citi would not do it so I did the ride through on my lawyers advice. When they would not work with me on refinance I just gave up and continued to make payments when I could.

This rate lowering has really been a surprise. Maybe they felt guilty. HaHAHA

[aces67]

That's great news! Congratulations!

[music12]

it's probably more of a business decision than having a heart. their experience showed them that you would probably just default on it if they won't lower the rate. and it's not like they can ever collect from you - it's already discharged.

[Amy26]

Did they make you sign new loan papers for it or did they just decide to lower it without modifying the loan?

I would think they would have sent you new papers to "reaffirm" the loan and make you liable for it again.

[BKVIGIL]

They did not send new papers - just a notice of lowered rate with new lower payment -
I'm still waiting for the "catch"

[music12]

i think it would be a violation of the bk code for them to try to get a reaffirmation.

the only "catch" is, i think, that they are now getting payments from you that they would not otherwise get. you get to stay. finally, everybody benefits, as it should be.

[Amy26]

Well by reaffirmation I meant did they sign a new loan totally...if not, then wow lucky you! I hope there is no catch!