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Received NOD (?) From Citi - Loan Mods - Opinions/Options?

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    Received NOD (?) From Citi - Loan Mods - Opinions/Options?

    Howdy everyone. Thought I'd get your opinions on my situation...

    I have 1st/2nd mortgages w/ CitiMortgage. The house is worth ~300k, the mortgages are for 354k and 85k. It was originally purchased for 442k. I paid the Jan 2010 payments for both but haven't paid anything since then. I did this for two reasons: 1) We are filing Ch 7 in July and intend on NOT reaffirming the house as it is so upside down and it needs about 30k in repairs. 2) We want/need our loans modified if we are to remain in this house.

    Today, I received a NOD/Pre-Acceleration Warning letter from Citi on the 2nd. What do you think about this? Just a bluff? I'm not real concerned about it as I'm filing in a few weeks here & realize that I could end up being forced to move at some point.

    I applied for loan mods on both loans within the last couple of months but haven't received the offers from them yet. I was told over the phone that the 2nd had been approved (2% for the life of the loan which is down from 7.770%, no extension in terms, late payments/fees wiped off) but I had to make a payment on it within 7 days. I told them I was NOT willing to do this until I found out about the first. I don't want to throw away money on something that I may lose anyway. They got ticked off and told me my file was going to be closed and I would have to refile. Ho-hum.

    How would you approach this entire situation w/ our soon to be filed CH7 case? Would you refile for a loan mod (in-house) on the 2nd, knowing that it will get thrown out again b/c of the CH7, or just sit tight and wait until after the CH7 stuff gets finished up?

    -AA
    Stopped paying CCs 1/10 | Stopped paying mortgages 2/10 | Interviewed attorneys 3/10-5/10 | Retained attorney 5/14/10 | Delivered paperwork to attorney 6/17/10 | Filed Ch7 7/9/10 | 341 8/16/10 | Objection Deadline 10/15/10 | DISCHARGED 10/20/10

    #2
    We got a similar letter last month requiring we get things in order by the middle of this month (we filed BK in Jan and discharged and closed last month). I think the first letter is just a warning shot. The next will be the 'intent to accelerate' and then after that sometime will come the official NOD. However it depends on the laws in your state.

    Citi is our 2nd. The market is so depressed in our neighborhood that if our house sold for the best going price (which it wouldn't) it still wouldn't be enough to cover the 1st mortgage, so I'm surprised with us at least that they are threatening to move forward when they will not really get anything.

    Once you file it'll freeze the process unless they decide to file for relief from stay. As for advice, your BK attorney should be best suited to answer your questions as he/she will be familar with the process for your state.

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      #3
      Originally posted by neorecon View Post
      ...The market is so depressed in our neighborhood that if our house sold for the best going price (which it wouldn't) it still wouldn't be enough to cover the 1st mortgage, so I'm surprised with us at least that they are threatening to move forward when they will not really get anything.
      This is what surprises me w/ this entire thing. Our house is SO far under water. But, I guess w/ CitiM holding the 1st and 2nd they'll look at it a bit differently.

      I'll talk to my attorney about it. To be quite honest, I'm not really worried about it at all. I'd like to get my mortgages modified & stay there "renting" it. But, if they push it - they can have it!
      Stopped paying CCs 1/10 | Stopped paying mortgages 2/10 | Interviewed attorneys 3/10-5/10 | Retained attorney 5/14/10 | Delivered paperwork to attorney 6/17/10 | Filed Ch7 7/9/10 | 341 8/16/10 | Objection Deadline 10/15/10 | DISCHARGED 10/20/10

      Comment

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