[nevadachick]

We are currently in a loan modification and Citbank said our loan will go up We only owe 180,000 and I do not understand why our interest rate will only go down 1/2 percent from 11 to 10.5. It will make our ARM go to a thirty year fixed but our payment will be 1987.00 and that is high for our income. The mod person said our debt rate to loan rate is only 32% but they are going on our our gross and not net. And they are not figuring any of our other bills into the equation or second mortgage of 262.
We have until 2/09 before anything is done with our house. Our Equity is good as the houses in our area are selling for 290 to 300 thousand. And that information was given to me recently by the Real Estate person that handles our second loan at our Credit Union.

I spoke to an Attorney today and he said it is better to have them handle this as our Ameriquest documents will probably have errors and law mistakes on them. I explained to the Loan Modification Guy at Citibank that he is also going on my husbands bonuses and not just his salary. He said that they are only required by citibank to take a look at our house payment and year to date income gross.

Does anyone have any suggestions and do Attorneys help or make dealing with you lender worse?

[admin]

Attorneys just cost more money they do not give any better treatment, in fact I would guess their paralegal will do the work and they never see the case. We have had good success with CitiBank and know what numbers they need to get the best deal.

[Gonetodocs]

Nevadachick,

Now wait a minute, If the house that much equity why can't the Credit Union get the loan done for a refinance??!! As long as you can prove income you can get an FHA loan all day long to get a rate in the range of say conservatively 7.0-7.75%

The Debt-to-Income ratio is what they are talking about and that loan mod. person you are talking to is more than likely a liaison of sorts between you and the underwriter. There is a front end DTI and a Back-End DTI ratio and many times it is expressed as the front overthe ack Ex: 32 over 45; 32/45; etc. The Back end DTI includes all of your bills completely. I use a sheet that calculates the complete personal financial budget and make those calculations myself for the Underwriter before they look at the file making it very simple for them to make a decision beneficial to you. you have to know lending thpugh and the mindset of how an underwriter functions and it is not always an exact science. That's why hiring someone has it's advantages because inaddition to this little nugget of info there are many many nuances of processing a loan modification that the average guy might not know about.

What I would do is try to get up higher on the hierarchy ladder @ the lenders executive offices. Try to find out the lenders contact information on the executive level and email fax and call everyone on the executive level you can find. Write down the complaints you have and the fallacies of the lower level people that are processing your case in a letter pleading for help and put it in the body of an email and send it to them all. Someone has to reply and this will also solidify your request by repeatedly contacting them asking for help. The lenders are becoming more and more willing to work with individuals and if you have the time, the patience, and the persistence, then you should be able to get some pretty positive results. If not then you better turn it over to the guys here @ the forum for their expertise and advice. The money spent is well worth the investment in saving your home.
Good Luck,

[Ifixbadcredt]

Stay in constant contact with your lender. I have not seen one example of an attorney helping secure a loan mod and will charge you for their time. You can call your lender for free each day.

[Rainmakerequity]

The replies are fairly accurate. If you Debt ratio is truly 32% based on the
adjusted payment, you really don't have a case for modification, especially if
the loan is adjusting down. Ratio's are calculated on Gross income, the same as
when the loan was granted.

You didn't state if you were currently in arrears, or if there are mitigating expenses not being used in the ratio. Attorneys provide no special expertise on modifications, in fact we have attorney firms as clients who simply take in the cases then outsource to us for modification. Remember you did sign a loan agreement with the
terms spelled out.

However, the lawyer did advise you correctly. Many of the Ameriquest adjustable
loans done, especially between 03-06 contained Truth In Lending Violations in
the disclosures. If there is a violation that qualifies, you may be eligible
to rescind the loan assuming the loan you are in was a refinance.

TILA violations that qualify, extend the 3 day right of recission to 3 years.

This is a bit of a tangled mess and if you go this route you do need attorney protection.

[rainelli]

this is a good discussion and i'm learning from it...keep it coming guys...

[ncivic73]

Hello guys! I dont know where to start! We started modification on our loan May 2009 and now is almost July 2010 and nothing i mean nothing has been accomplished! Im super mad and this thing driving us crazy! Every month they need something! First of all boys and girls dont get tricked on "courage" words from costumer service at Citi! If you do modifacation and even you make your trial payment your credit score will hit bottom of the sea which is another subject! Anyway we did everthing we could..call them, send them all paperwork (checks/statments etc) and every month they need something else or the same paper which they claim then never got it! Income tax form was send to them 12 times via UPS or Fedex..signed for it and still lost or they have one and missing another!!! Hmmm..how you can have one thing and not another if is send in same UPS envelope? So 15 months later we are on same page! Not even page 2! Our condo is worth 50-60K less then balance, about 9 for sale at this moment for 8 months and more so we are screwed both ways! We are trying to do our best and to be decent citizen, work harder and pay promised bills, like most of the Americans in this days and this bank (Citi) just dosnt care! I guess when goverment is signing checks who cares about poor people! So we called them and called them and every month on 1st paying our "agreed" payment and they are still reporting us to Credit bureau as late and there is nothing they will do for you! They just kind of "feel sorry" for problems and time is ticking! So guys if you are thinking to do this please do your self a favor and ask simple question! Is it worth it? Credit will got to toilet if you pay or not! House will be worth less anyway! Bank dosnt care! They willl rather take your home and sell it on auciton for 3 times less then help clients! If you know some company for modification please visit them..dont try to do it yourself! Will take more then a year or 2 and your will pay bill..trust me!! Credit card company will trash you just for this reason! Sorry again for being negative about CITIBANK mortgage but they realy dont care about anyone in this country! I wish you guys good luck and please think what you do before you deside to go with CITI MORTGAGE Modification! Also if you have any question please ask! God bless!

[SuperModification]

This is very helpful, my family is currently going through a Loan modification and the Bank is absolutely impossible!

[Tracey]

We are currently having so many problems with Citi. They talk nice and don't do anything to help you...just continue to give you the run around, playing games. Somehow they do not have have accurate notes from ANY phone conversations and CONVENIENTLY my calls are not among the ones recorded!!!!

I need help..