Traditional Loan Modification Timeline for Approval

by Marie
(Hawaii)

Is there a timeline by government standards for a review for a Traditional Modification? I am with Citimortgage and was denied after two months of my trial for HAMP due to an error where they mistakenly added my income wrong. I have a third party working for me and they got Citi to escalate and roll me right into a Traditional Mod application ( I still don't know why when the error was discovered they didnt just keep me in that original program. ) So now I am in review for a Traditional Mod for six months after we started, I am still making the original trial payments to Citi but with a running back total since I was late 3 months when i started and got into the first HAMP mod request.

The fees keep adding on and all Citi says is it is in final review with the underwriters since about June 21-- do they have any timeline they have to honor or can they string me on indefinitely? They say they have all the info they need and are not awaiting any docs from me but it is still in review. HELP!

Mortgage Loan Modification Answer:

Unfortunately, there is no set timeline for approval or denial once your loan modification application reaches the underwriter's desk.

They say that if you are in default and the foreclosure process has already been started on your property, you are given a higher priority. This was true for me. The law firm we hired to represent us turned out to be fraudsters (they have been disbarred since) wasted 6 months, did nothing, then filed bankruptcy. We were left in a lurch and CitiMortgage filed the Notice of Default around the 5th month.

We re-applied, and we were told we didn't qualify for HAMP so they put us in the Traditional Loan Modification funnel. We got an approval after 6 weeks with no trial period necessary.

However, my friend has been trying to get her loan modified for 14 months with PNC. They have filed a Notice of Default and a Notice of Trustee Sale, but keep postponing the sale date and keep telling my friend the same thing -- "it's under review with the underwriters".

Of course our situation is different from yours, but it demonstrates how inconsistent the banks are. I believe each application is looked at on a case by case basis. If your numbers don't quite fit in their formula, it takes longer for them to decide.

Make sure you keep following up with CitiMortgage -- even on a daily basis (I did) -- and don't be discouraged. You can also write Citi a letter detailing your frustration, and cc your Congress representative in order to garner more attention.

Have a back-up plan just in case CitiMortgage decides not to modify your loan. Look over your available options so you are prepared for any outcome.

Please come back and post your outcome so others may benefit from any information you can share with how CitiMortgage handles your loan modification request.

All the best to you.

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