Denied for Modification told to reapply.Please HELP

[sdrake25]

I received a loan modification from Citi in 2008, and my rate was changed from 1% for the first year to 4% the second 8% for the rest of the loan. I fell behind on my payments the first year and my home went into foreclosure during this time Citi sold my loan to Vericrest. I contacted Vericrest to get a modification but I was denied twice. I then filed Bankruptcyin March 2012 and my Bankruptcy attorney told me that they will be more inclined to do a modification because I have no existing debt...That was a lie!! they denied me for HAMP in July because they could not get my payments lower. Now here is the part that I need help with...They have my interest rate listed at 1%, I guess they missed the part where Citi said that it would be raised after one year. Because its at 1% they obviously cant lower it anymore. I asked them to just put my past due at the back end and they said that thru the guidlines at HAMP if they couldnt lower the principal then I wouldnt be eligible, hence the denial. A representative suggested that I reapply for the inhome modification, but their lowest interest rate starts at 2.3% and they have me still listed at a 1%. Should I tell them that my rate was scheduled to be increased so that I can have a chance of being approved if I reapply? I am behind $130k, since I havent made a payment in three years. I initailly borrows $550k. I dont want to lose my home. I was asked to submit a expense report and a month paystubs. What numbers would they be looking for in terms of debt to imcome ratio to improve my chance of being approved? Please help:cry2:

[tiggerlgh]

What interest rate are you paying If they are only charging you 1% a month they probably can't lower it. If you are paying a higher interest rate point that out to them and try to re-apply.

 

Good Luck.

[Debtinsider]

Reapply and if the rate goes up so be it. It's not always the rate that should be concerning, it's the payment. If you cant service the debt under their guidelines they will not approve you. Rate will determine your payment and if there is an in house mod that you qualify for you should go after it. Forget about the one percent, its more important to get your loan recasted. The house is already in a negative equity position so no matter what % rate they charge you it still won't make up for the negative equity.

 

The most important thing to consider when reapplying is to make sure you have suuficient money to cover your monthly. Decrease all your expenses, the only expenses you cannot make up are ones that show up on your credit report. A good rule of thumb is to show that your income can cover your past mortgage payment. One point to remember is that they have been paying your escrows for the past year so you will have to make that up and they will calculate that into your payment and if you can't afford that than you will more than likely get denied. Everyhting is based on your current income and whether or not you can service the debt.

 

Good Luck with this and get your application submitted.

[Guy0187]

Regarding the increasing interest rate, depending on who is the loan investor there are a lot of loan modifications that are step-rate, meaning they are reduced temporarily and then "stepped up" to the market rate.

 

You first need to clarify/confirm your interest rate. It shouldn't be wrong in the bank's system.

 

HAMP eligibility is almost entirely based on DTI (debt to income ratio). If they cannot reduce it to 31% for HAMP Tier 1 or between 25%-42% for HAMP Tier 2 then you would not qualify for those mods. Since your first mod was back in 2008 this would have been before HAMP Tier 2 came out which is a bit more lenient in terms of who will qualify for the modification.

[sdrake25]

I tried to reapply with HAMP and in house modification and both denied me and again they stated the same thing, I do not qualify becaus ethey cannot get my payments lower that they are now and they cannot lower my interest rate. I tried explaioning it to them that it isnt a 1% and they said that they see it in their system but they have to go with what they have when they first got the loan. I havent paid in well over 3 years and according to them I owe over 700k, I borrowed 550k and now the house is worth 515k. I dont want to leave my house and Ive been fighting with them for the past three years for a modification. They said that my account still has an active bankruptcy status on it, which means that they dont show that its been discharged, Ive been discharged for almost a year. They've offered me a short sale but I really dont want to lose my home, my kids and I will be heart broken. Can anyone think of anything else that I can do?

[AIMANZUL]

I am surprised that your attorney is not helping you to keep this house by speaking to the bank. Banks these days are always willing to work with you

[power_broker]

I tried to reapply with HAMP and in house modification and both denied me and again they stated the same thing, I do not qualify becaus ethey cannot get my payments lower that they are now and they cannot lower my interest rate. I tried explaioning it to them that it isnt a 1% and they said that they see it in their system but they have to go with what they have when they first got the loan. I havent paid in well over 3 years and according to them I owe over 700k, I borrowed 550k and now the house is worth 515k. I dont want to leave my house and Ive been fighting with them for the past three years for a modification. They said that my account still has an active bankruptcy status on it, which means that they dont show that its been discharged, Ive been discharged for almost a year. They've offered me a short sale but I really dont want to lose my home, my kids and I will be heart broken. Can anyone think of anything else that I can do?

You haven't paid your mortgage in over 3 years and you want to keep your home? Sorry, that's not really how the world works. Your best bet is to do a short sale on the home and hope the lender cooperates.

[stroked89coupe]

 

I tried to reapply with HAMP and in house modification and both denied me and again they stated the same thing, I do not qualify becaus ethey cannot get my payments lower that they are now and they cannot lower my interest rate. I tried explaioning it to them that it isnt a 1% and they said that they see it in their system but they have to go with what they have when they first got the loan. I havent paid in well over 3 years and according to them I owe over 700k, I borrowed 550k and now the house is worth 515k. I dont want to leave my house and Ive been fighting with them for the past three years for a modification. They said that my account still has an active bankruptcy status on it, which means that they dont show that its been discharged, Ive been discharged for almost a year. They've offered me a short sale but I really dont want to lose my home, my kids and I will be heart broken. Can anyone think of anything else that I can do?

You haven't paid your mortgage in over 3 years and you want to keep your home? Sorry, that's not really how the world works. Your best bet is to do a short sale on the home and hope the lender cooperates.

 

 

If your full reply can't contribute to the thread in a helpful way. Don't bother responding.

[breeze]

The OP hasn't been here since May, so there's no point in beating this poor dead horse. HAMP has very strict rules, and it's best if people who are professionals actually doing this for a living, or people who have been through it, share their experience, Judgmental comments dropped out of the blue are not going to help anyone.