Jag Bhangu knows he'll likely lose his home.
Now that he's been denied a mortgage modification, he expects to have to do a short sale, where his mortgage company agrees to let him sell the home for less than what he owes. That's hard to imagine: He bought the home in 2007 for $765,000, putting $250,000 down.
"I don't want to think about it," said Bhangu, a mortgage consultant who has seen his income fall by 70% in recent years.
He drained his savings before applying for a modification under the president's foreclosure prevention plan. Finally, he was placed in a trial modification that lowered his monthly payments by $800 to $2,517.
Nine months later, he was told he was denied a permanent adjustment because he still has equity in the property. After speaking to the executive response team at Citigroup, he was placed in another trial modification.
Deep down, he doesn't think the outcome will change, but he hopes someone at Citigroup will find a way to help him before he gets rejected again.
"You feel humiliated," Bhangu said. "I don't know who I should be talking to."
Citi declined to discuss Bhangu's situation but said that not all applicants qualify for a modification under the president's foreclosure prevention plan. The servicer is continuing to work with him to see if there are other possibilities, a spokesman said.
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