Question Citi Home Loan Modification Question

[TBW]

I am about 4 weeks from filing for Chapter 7 and I am planning to keep my home and continue to make payments without reaffirming. I am currently about 1 month behind on the mortgage payment to CitiMortgage and plan to catch up in the next 3 weeks. I received a letter from them (UPS Next Day Air) notifiing me that I could possibly qualify for a loan modification that would lower my payment, lower my interest rate, or provide payment relief. Is this something that I should look into before filing? Would it affect the Chapter 7? Would Citi allow me to do this after filing?

Thanks in advance for your replies.

[laurannm]

I'll let you know tomorrow. I have a call scheduled tonight to discuss our options with Citimortgage. We didn't reaffirm our mortgage with them,

Another member on here did not reaffirm their mortgage and was told by Citi that they could not help him because of the BK, so I am not holding my breath

[Minnymouth]

Evidently from what I have already learned and hear about the loan modifications etc with your lenders, if you have filed BK, there's no help available for you.

Now if you were in foreclosure (no bankruptcy), then help would be available with a modification loan probably.

So if you have already filed BK, your probably out-a-luck...............

Also, if you haven't filed BK yet, and you let them know that your going too, then............. they will probably turn you down also.

I'm sure these modification loans have lots of rules attached to them.... such as rechecking credit reports, etc....

I don't believe it was designed to help those that have and are going to file bankruptcy.

If someone gets accepted for one of these loans, please let the forum know...

[TBW]

Maybe I should apply for this before I file. I should probably ask my attorney.

[DaisysMom]

Loan Modification

I am filing BK in June or July because it will take that long to pay off my attorney. I also filed for a mortgage loan modification with GMAC. I am only one payment behind and trying not to miss any more. I have been successful in making a payment each month, but I just cannot come up with making two of them.

GMAC took my information over the phone and I was approved for consideration. I am expecting a packet in the mail spelling out what they can do for me. At this point, I am just hoping for a decrease in the interest rate because I hav equity in the home.

I went to the government site stability.gov or something like that and read the plan. There is a provision in there that if you get a modification and make your payments on time, every year the government will throw in $1000.00 towards your principal for 5 years. That's 5K off your principal. SWEET!!

I haven't mentioned BK to GMAC (hoping that the modification will all be in place before I actually file) but my lawyer told me to read the fine print in any agreement I enter into, because there may be a clause saying that if I file bankruptcy they can then change the terms of the modification. However, there is something in the .gov site that says bankruptcy should not effect any modifications. I will have to go back and re-read it.

I will let you all know how it turns out.

D.....

[laurannm]

Had my appointment with Citi this evening. According to the gentleman I spoke with (who verified while I was on the phone with him), filing BK does NOT necessarily exclude you from receiving any some sort of modification\refinance. In his words, "have filed a BK did pose issues in the past, but not with the current programs". Supposedly I will hear back from them within 3 weeks with some offers and options as to what they can do.

This is in direct contrast to what another member on here was told earlier this week by Citi, so I'm not sure what is correct and what isn't

[eddiep]

I am about four weeks from filing as well and I just completed a modification with Bank of America. My attorney wanted this completed before we filed. But things have changed alot in the past 3 months. As I am sure you know you must be current on your mortgage payment in Chapter 7 and it sounds like you are struggling to keep up on the payment. Definately get in touch with your lawyer, hopefully he/she can figure out all these new rules for bk/mortgage mods. I was completely honest with BoA about the fact I was filing bk and they had no problem with that. They are going to find out about it so you might as well tell them. I was able to cut my payment by $1030 a month and I get three months without a payment while they process the paperwork. Good luck and don't let this opportunity pass you by! So talk to your lawyer and bank to figure out the best timing.

[albacore44]

Did any of you have other Debt (cc, etc.) that you would be discharging in BK ?? i wonder how inclined they would be to help you if your delinquent on CC debt with them.

[eddiep]

to BoA? Oh yeah lots! over 30K. They NEVER mentioned my cc debt to them while we were discussing the modification.

[relief13035]

This is in direct contrast to what another member on here was told earlier this week by Citi, so I'm not sure what is correct and what isn't

I'm wondering if you got better results than I did, because you are already discharged and I'm not???

I called and made another telephone appointment for next week. I'm going to try it again.

[laurannm]

I'm wondering if you got better results than I did, because you are already discharged and I'm not???

I called and made another telephone appointment for next week. I'm going to try it again.

Yep, you are probably right. Since your BK is still open they probably can't talk to you for fear of viollating the automatic stay. Definitely ask them if they would be more willing to talk once it is discharged and closed.

[albacore44]

I'm wondering if you got better results than I did, because you are already discharged and I'm not???

I called and made another telephone appointment for next week. I'm going to try it again.

I think you said you have a HELOC also. Be interest to find out how that works out for you with CITI who has my 1st,and since I have a BIG HELOC and it's not with them.

[laurannm]

I think you said you have a HELOC also. Be interest to find out how that works out for you with CITI who has my 1st,and since I have a BIG HELOC and it's not with them.

That is our scenario as well. First mtg with Citi, good-sized HELOC with First Horizon. Even after last night's conversation I'm still not sold that Citi will offer me anything, but we'll see.

[pd1373]

I made my call to Citimortgage last week too - was told that our bankruptcy (chapter 7 discharge last May, we reaffirmed the mortgage) would not pose a problem for the purposes of any offered loan modification. Now I'm just waiting a couple weeks to find out what we qualify for. A refinance at today's lower rates would be nice. We hadn't been able to do it because we're slightly upside down on the house but a lower payment would help. We're current with everything but just scraping by financially now even with all our other debt discharged.

I wonder if I should have waited another year. Assuming I keep current with the mortgage, cars and my new Orchard Bank card I expect my FICO to be up near 700 by then, it's about 657 now......might get a better rate next year.

[AlmostFree]

pd1373,

Before accepting any type of modification, be sure to see if you might qualify under the new Home Affordable Modification Program. Your interest rate could be as low as 2% over 40 years plus principle forbearance at zero interest plus a potential $1000 per year bonus. AlmostFree