Citi Dual Tracking

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  • #41532
    Course24
    Member

    I am a NACA homeowner &
    member who has been working with Citi via NACA since Feb on a possible loan mod. Citi asks for docs all while doing foreclosure process at same time date set for May 1,2018. Still have received no determination on modication. I have read too many stories where they do this pending loan mod while they auction the home off simultaneously by their local law firm. Can they legally do this? Shouldnt they make determination before listing public auction dates?Please advise.

    • This topic was modified 3 years, 5 months ago by Course24. Reason: New info
    #41549
    TTrumble
    Member

    Hello Course24,

    I suspect what you have been reading is quite old. There are a couple of key points you should be aware of:

    1 – “Dual tracking” as it was called during the height of the mortgage crisis was actually somewhat of a misnomer. It was (and still is) perfectly legal for the banks to continue normal collection efforts while working with a homeowner on a modification. Prior to a 2010 federal judge’s ruling (against Wells Fargo as I recall), they could even foreclose. The court ruling however stopped the banks from taking that final step while they are working with a homeowner who has made a modification request. Yes, they can still set the auction date, but they can’t go through with it.

    2 – As a NACA homeowner, Citi is required to communicate all relevant actions to us since we will automatically be your advocate during the process. Even if they were still legally able to foreclose, we would have the ability to request and obtain a postponement of the auction.

    In short, relax and let the MAP department do their job. Stop scaring yourself with inaccurate and outdated information. NACA loans have the lowest foreclosure rate in the nation, a tiny fraction of the national average, even today. You’re not going anywhere if NACA has anything to say about it.

    Tim Trumble
    Online Operations, NACA

    • This reply was modified 1 year ago by TTrumble.
    #41560
    Course24
    Member

    @ttrumble@naca.com
    Thank you for the clarification.

    I purchased my NACA home in Apr 2008.
    I have since gotten married & although I’d like to keep my home, the current structural issues we are dealing with (foundation crumbling, driveway sinking in) along with my current medical issues that are preventing me from working (now my husband is the primary wage earner & on the deed) makes this extremely difficult to continue knowing the house will still have $30k+ negative equity even with the structural repairs made with are extremely costly. So a loan modification that possibly includes a principal deduction is our best case scenario financially speaking.

    Also, my husband would like to go through NACA for a home purchase that is a better fit for us financially & structurally (he would be a 1st time HB & a teacher). However, members can’t own 2 NACA mortgages. Are we able to qualify for another NACA mortgage if we get from under this home?

    • This reply was modified 3 years, 5 months ago by Course24.
    #41567
    TTrumble
    Member

    You may use the NACA program again as long as you have the present home under contract to be sold and at least three years have passed since you last used the program (which you obviously have).

    Just so you are fully informed, should the situation with the present home result in a foreclosure or short sale, it will create a two year delay before you will be able to buy again.

    Keep working with your MAP representative amd keep fighting for that modification, and you can chart your future course from there.

    Tim Trumble
    Online Operations, NACA

    • This reply was modified 1 year ago by TTrumble.
    #41626
    Course24
    Member

    I just spoke to the “Single Point of Contact” with Citi.
    He just informed me that my application for the trial modification (whether the govt prog or in-house) was denied.

    I don’t know where to put my focus on now. The sale date is scheduled for Tues May 1,2018. I spoke to my MAP rep just 2 hours before and they had no info yet on this determination at all. I sent an email & left a message moments ago with MAP rep to inform her of the news I just received.

    #41645
    TTrumble
    Member

    Hello Course24,

    Please refer to our email correspondence and that with your counselor as well.

    Tim Trumble
    Online Operations, NACA

    • This reply was modified 1 year ago by TTrumble.
    #41677
    Course24
    Member

    Thank you.
    I wanted to know since my mortgage amount is approximately $25-30K over what Citi says the house is currently worth (home value decreased since my purchase 2008), is there any chance of a principal reduction? What would they stand to lose by doing so? It seems they would lose more allowing the home to go into foreclosure unoccupied. I’m just trying to understand the rationale here. Correct me if if I’m wrong on this, however, it doesn’t seem to be financially sound decision for us to remain here paying on a loan that balance is well over 30% over the home’s actual value by the bank’s assessment.

    Any insight on this would be greatly appreciated.

    #41679
    TTrumble
    Member

    Hello Course24,

    Honestly, I’d need a crystal ball to answer that one.

    Sometimes there seems to be no rationale to why they foreclose instead of working with the homeowner. In the early days of the mortgage crisis, principal reductions were virtually unheard of. The mindset was basically “if we do it for one person, we’ll have to do it for everyone”.

    There was also the issue of any principal reduction being taxable income to the homeowner prior to the enactment of the Mortgage Forgiveness Debt Relief Act in 2007. The Act has long since expired, but the exemption of taxes on mortgage principal reduction has been renewed each year by Congress since the expiration, most recently in February of 2018 to cover 2017 reductions.

    I have no way of knowing whether principal reduction is even on the table as an option for any given case. You’ll have to pose that one to your counselor to get any sort of reliable answer.

    Tim Trumble
    Online Operations, NACA

    • This reply was modified 1 year ago by TTrumble.
    • This reply was modified 1 year ago by TTrumble.
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