Citi Loan Modification on 2nd

[BKorbust]

Anyone here have any experience with Citibank modifying your 2nd mortgage. A little backround... I have a Citi 2nd that is almost totally underwater. Would be a close call if I can strip it in a 13. I was on a temoporary reduction in payments for the last 6 months. My payment went back up $300/month starting in March. I called Citi yesterday to let them know thst I would miss that payment because I couldn't afford it. She ran some numbers got my monthly expenses and said I was eligible for an FDIC modification. My rate would drop to 2% for the rest of my loan (25+ years) and my payment would drop $400/mo. She made it sound pretty easy. Paperwork would get to me within 30 days and I would be getting a call from an underwriter to get all my documents.

Has anyone gone through this? I would love to hear some experiences. This sounds almost to good to be true.

[nichole04]

Yes, I was offered the same thing with my 2nd mortgage from Citi. They said my rate would be reduced to 2% so I spent weeks gathering info. and sent in everything they needed and then they told me I didn't qualify so I didn't get the modification. I was very upset about it. I told them everything upfront about my husband's pay and it did not change over those few months. I don't know how they say you qualify only to turn you down when they get all the paperwork. Maybe you will have better luck than I did. We can do a ch 13 and try to lien strip as well but we also qualify for a ch 7 so we are going to do ch. 7 and then stop paying the 2nd after discharge and try to settle with citi afterwards. There is a post on here where someone was successful doing this. I think the name is relief.

[BKorbust]

Thanks for the information Nichole. Did they ever give you a specific reason you didn't qualify? I just doen't get Citi at all. I'd be surprised if I couldn't strip my 2nd but you never know. Best of luck!

[nerves]

Citi is a pain in the ass to work with. I didn't have a 2nd but spent hours on end just trying to reaffirm during bk. JMO...their customer service is terrible. I hope all goes well for you.

[albacore44]

Yes. look for posts by "Relief13035" she had an underwater Citi 2nd, and was able to settle for a 10% lump sum, post Ch-7 discharge.

[overspent]

I was on the border line with my HELOC. House value was slightly above the 1st balance. Due to large reduction in income I had to miss payemnts on everything. FEb is my 4th missed payment on the first. The interest + escrow+ late fee + BPo now I value is well under 1st balance. Stripping the HELOC is not an issue anymore. Still debating whether to walk altogether.

[nichole04]

They tried to say that our percentage for mortgages did not meet the requirements b/c of my husband's income but I told them what his income was when I first applied and they said we qualified. My husband's income hasn't changed in over a year so I don't know what the problem was. I think they have a lot of people there that don't know what they are doing. It took me about 3 months to go back and forth with the modification dept. before I finally got them everything they wanted only to be told we didn't qualify. That reduction in interest rate would have cut my 2nd mort. payments in half. Oh well, If they won't play ball on settling after my discharge I will just walk and leave them hanging with nothing. Best of luck to you!