RELIEF13035 Please help with Citi

[nichole04]

I need some help with settling with Citi post-discharge chapter 7. I have contacted many people and they are really playing hardball. I need to get the contact people you sent your info to in order to settle asap. Thanks so much! I also sent you a private message.

[ryan]

Is there some reason why you did not include them in the CH7?

[tcreegan]

Hi nichole, what exactly are you settling? a HELOC/2nd? Was there equity in the first?

Hopefully someone with Citi experience can chime in....

Tom in Colo

[msm859]

I settled my second with Citi. Owed $191k settled for $28k. It was actually simple after modifying my first. I originally offered to settle for $9500. They had an appraiser came out that said my house was worth @$ 740k, owe $660k on first. They offered to settle for $56k. I had to send them comps and info as to why their appraisal was high. Finally agreed on the $28k - @15%. Key is what equity you have in the house.

[nichole04]

I don't have any equity in the house and I have been discharged in a chapter 7. They are having me deal with the loss mitigation dept and I tried calling executive response team and they keep referring me back to loss mitigation. They are wanting last 2 years of tax returns, 2 months bank statements, last months paystubs, payoff amount on the 1st mortgage, and a financial statement. I keep trying to explain that I have been discharged and am no longer liable for paying this debt and that I want to settle for them to remove the lien or we will walk away from the house b/c we can't afford to pay the 2nd mortgage. I don't know why they just can't do a BPO first b/c our income is irrelevent when we no longer are responsible for the debt. I just want this to be easier and not have to send in financial stuff. Does anyone have any contact info. for citi so I can bypass the loss mititation process? Thanks so much.

[biotechsolution]

They wan't your financials to make sure you can't pay the 2nd, that's all, if you say you can't pay it, they want proof. The tax returns and bank statements would probably be the quickest way.
Can't squeeze blood out of a turnip.

[tcreegan]

loss mitigation vs bk dept

Hi all, hope this hasn't tripled posted or something, my computer is acting up......

They wan't your financials to make sure you can't pay the 2nd, that's all, if you say you can't pay it, they want proof.
...the discharge is proof, says "I don't have to pay you" even if I can (you can add nanner, nanner, pbltttt! if you want)

They are wanting last 2 years of tax returns, 2 months bank statements, last months paystubs, payoff amount on the 1st mortgage, and a financial statement.
...this is loss mitigation who are trained to deal with active, collectable debts. You need to get to the BK dept, usually a separate dept. Had this exact same problem trying to deal with GMAC mortgage. Never underestimate the incompetence of large financial corporations....

or we will walk away from the house b/c we can't afford to pay the 2nd mortgage
...acck! Stop paying immediately! Citi's 2nd is now utterly worthless....if you are still paying on it, that is why you are getting the loss mitigation dept. Stop paying and try again 6 months later, that should get you out of loss mitigation and into the BK dept.

Tom in Colo

[msm859]

I don't have any equity in the house and I have been discharged in a chapter 7. They are having me deal with the loss mitigation dept and I tried calling executive response team and they keep referring me back to loss mitigation. They are wanting last 2 years of tax returns, 2 months bank statements, last months paystubs, payoff amount on the 1st mortgage, and a financial statement. I keep trying to explain that I have been discharged and am no longer liable for paying this debt and that I want to settle for them to remove the lien or we will walk away from the house b/c we can't afford to pay the 2nd mortgage. I don't know why they just can't do a BPO first b/c our income is irrelevent when we no longer are responsible for the debt. I just want this to be easier and not have to send in financial stuff. Does anyone have any contact info. for citi so I can bypass the loss mititation process? Thanks so much.

Although it may seem silly to you, what is the downside to giving them what they want? I also thought they didn't need it, but you might as well argue with a wall when someone is only following protocol. I gave them what they wanted and settled. I think the BPO is more important. Although you should still be able to show you don't have the money to pay. Actually, I started off by quit paying them and then said I was looking into filing a chapter 13 and stripping their lien if we could not settle.

[nichole04]

I have not paid any money on this loan since April which puts me 5 months late and I was discharged in July. I talked with their bk dept. and they are the ones who sent me to loss mititgation. The reason I am worried is b/c even though we have been discharged my spouse makes over the median income but our 1st mortgage payments takes half of his bring home pay and when you throw in our other expenses we really don't have much left over but I am afraid they are going to say that we can pay but legally we don't have to. I also have an appraisal that was done on my house earlier this year and according to it we have around $5000 equity but I am sure a BPO will come in lower. Should I send them a copy of this appraisal or just let them do their own BPO? We really don't have the money to settle and will have to borrow from family. The cost of living is awful these days and it takes everything just to make it. I am just worried about the income and wish I could settle without providing it.

[msm859]

I would not worry about the income. It is a formality. The "equity" is the big question.

[tcreegan]

Although it may seem silly to you, what is the downside to giving them what they want? I also thought they didn't need it, but you might as well argue with a wall when someone is only following protocol. I gave them what they wanted and settled.

....the path of least resistance....always something to consider!

Tom in Colo

[nichole04]

Yes, I guess I should just give them everything they are asking for. I know some people here have settled their 2nd mortgages with Citi without having to give them all of this paperwork but I guess either Citi has changed the way they do things or I just totally failed at getting through to the right department. Hopefully, I will still be able to settle for them to release the lien even if I have to provide them with information that is irrelevent to settling post-discharge chapter 7. Thanks everyone for your input! I hope to report good news on this soon!