Mortgage Modification Lawsuit Against CitiMortgage

CitiMortgage are faced with a class action lawsuit filed by homeowners that alleges that the company did not fulfill their promise to provide mortgage borrowers reduced loan payments.  If fact the suit states that it also financially devastated the borrowers.

The lawsuit states that homeowners with a mortgage loan from CitiMortgage could us a trial mortgage modification program to help them reduce payments.  This program was built around the U.S. Treasury Department’s Home Affordable Modification Program (HAMP).  The program would become official if the homeowners lasted the three month trial period making the reduced payment amounts

Many homeowners completed the trial and followed all stipulations of the program – however they were denied access to the permanent program.  This made things very difficult for the homeowners and many were in a worse situation after they completed the trial.

The lawsuit claims that CitiMortgage did not honor its agreements with homeowners and that it misrepresented the information of the program.

The lawsuit is open to all persons in the US who are serviced by CitiMortgage and who complied with the conditions of the trial program and who did not receive permanent mortgage modification per the loan modification agreement.

More on Mortgage Modification Lawsuits

This entry was posted on Tuesday, May 1st, 2012 at 3:10 am and is filed under CitiMortgage, Mortgage Related. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

13 Responses to “Mortgage Modification Lawsuit Against CitiMortgage”

  1. Teresa Lorraine Says:

    Same exact story – only we were put on (and successfully met) several “trial periods” over the course of three years. Our house was sold at a sheriff’s sale, and I was notified that it had been sold when I called (a day earlier than I had been told to call) to find out if our modification had been approved. We have been financially devastated and have until October 13th to vacate. Would appreciate any direction.

  2. Laurie Matthews Says:

    the same thing has been done to me i filed for a modification on 8/1/11 and was only 1 month behind at that point my payment was 856.00 i did the 90 day trail at 834.00 and at the end of the 90 days they put my payments up to 925.00 and put 12,000 on to my loan so this is what they did i need my payment lower for lose of over time so they toke my payments from 856.00 to 925.00 and i owed 98,000 and after they was done i owe 112,00 so the made things worst for me and better for them..so now ifiled a chapter 7 and did not reaffirm my houes because they have not done anything for me if anything can be down about this please contract me

  3. Timothy and Cynthia Donaldson Says:

    We were put through the same thing with citimortgage for almost 3 years. we were told we qualified for the remodification and we were put on a 3 month trial plan. We made the payments as directed and filled out all the paperwork etc,they kept telling us the didn’t receive paperwork and we kept having to fax them papers.
    We would continue to talk to people at Citimortgage and would never get the same story from anyone. WE eventually received paperwork that stated we didnt qualify for the remodification and that we were extremely behind and needed to send them like $12,000 and our house payment doubled from what we were paying. It went from 898.00 to almost 1600.00. There was no way we could afford that. It has been hell on us for 3 years and now we are losing our home.
    What can we do? ANy ideas? thanks.

  4. Cliff & Elaine Anderson Says:

    We started the loan modification in Nov 2009. We have attorney Karl Bredberg from Aledo, Illinois. To date, we have received no written notification of where we stand right now. Citimortgage served papers on us a year ago to proceed with foreclosure plans. They listed our home for 6 months on a short sale at $79,900. Not one single looker or inquiry. Citimortgage appraised our home at $248,000 in 2005. Since then, we lost all our retirement in th crash, my husband’s job of 26 years was eliminated, he was diagnosed with terminal carcinoid tumour cancer, had a stroke and health still declining. I was put on total disability and can no longer work due to medications required and health condition. We told citimortgage we would make the payments if they lowered the interest rate of 12 percent to a lower rate. They raised rate from 8 percent to 9 percent while we paid the trial period, and then to 12 per cent when they served papers last year. All we can find out is that our loan is tied up in litigation somewhere with no information available. We have submitted all required paperwork four times now, and have had an agonising 27 different caseworkers in three different states. We have lived here 37 years and built onto this house ourselves. It even has an $85,000 paid in cash wrap around 3 season porch that wasn’t there when they appraised it. With going on 4 years, no contact from citimortgage, and possession is 9/10th of the law, citimortgage needs to deed this house back to me at their short sale price of $79,000; less $79,000 for all the pain, suffering, stress, heartache, and mental health suffering and also bodily health problems they have caused us old people. What did they do with the $2,000 a month we paid on the trial period? Oh right. They had to use that to pay back the government for their bail out! All these smart loan companies should have to go to jail along with every employee who knew what they were doing. And I will give you my citimortgage loan number if you wish to contact me by my mailing address. By the way, the pop. Of our town now is around 250, with half the houses foreclosed or sitting empty. What a great America we live in huh? Respectfully, Elaine.

  5. ricky holladay Says:

    need info to join the lawsuit against citimortgage! they are taking our home after a long 28 weeks of being on the phone for many hours of lies from them! Also my kids suffered especially my 11 year old with autism! They took his quality time and he does not understand it at all! Meltdown for my lil angel! my other children also suffered from all the lies an time consumed with a different person every time that had no idea at all! Gods mercy to them all! Kids that always made a’s dropped to d’s an F’s during this major crises!

  6. raynold randle Says:

    our problem started with our property taxes. we received a letter stating we owe back taxes, which was Citicorp error a long process, we had to refinance next thing we know our Mortage was sold to another lender we were never refinance. Now are paying higher interest rate because of our credit.

  7. raynold randle Says:

    our problem started with property taxes, we received a letter regarding our property taxes stating we not being charged enough for our proprty taxes. so we were being charged for back taxes. we needed a modification done. we were told by citicorp to refiance to pay our back taxes,we did we wre charged higher interest rate we were told with in three months we will be able to do a modification when time came they had sold our mortqage to another lender.WE ARE NOW PAYING FOR HIGER INTEREST RATE.

  8. Dawn Keller Says:

    I went through applying for a loan modification in 2010-2011. Nine months it took and was then turned down and didn’t know that this would hurt my credit. No one explained that and my credit score went down 90 pts. I have always had good credit and now I don’t because of CitiMortgage!!!!

  9. Veronica Sharamitaro Says:

    My Husband and I hired a lawyer to take care of this Modification with Citimortgage our lawyer claimed that the only way to save our house was to file a chapter 13,a year later there was a note in our front door that our house would be sold in a trustee sale , we were so stressed out called our lawyer he would not respond it took us four days to find this stupid lawyer my husband had to go to his office in km san diego , in the mean while i was calling other lawyers asking for advise they kept telling me to let this lawyer fix what he started , since we had hardly any money and we had already paid him we had no choice, this stupid lawyers idea was to file another chapter 13 and his staff kept e mailing us that the modification was moving along etc, etc , come to find out that we were never approved but they kept lying to us , after that my husband and I just got a new lawyer , and we had no choice but to file chapter 7 by now you can all imagine what the bankruptcy courts are thinking of us exactly they thought we were filing out of bad faith, completely wrong we just wanted to keep the house that we worked so hard to pay our kids grew up there , i lost my job due to health issues , sleepless nights , i got high blood pressue, anxiety attacks . Now i want to get at least some part of my money that we paid that Modification company in advance this company knew already that there was no way they could save our home at that point but still put up a good play . I get sick just thinking about what these people did to my family . Its not right . I even called Turko he never answered back .

  10. Linda Sanders Says:

    I was behind with CitiMortgage after my mom died. She was co-buyer on our house. I called them to ask for help and asked what I could do to keep my home. They suggested a Home Modification loan. I applied and waited to hear something from them. A month later I called them back asking about the Modification, they said the person who took the information wasn’t qualified to do so and that my application was therefore null and void. I asked again to apply for the modification, this time they told me I didn’t qualify. I called CitiMortgage a third time, this time they asked for money to keep my loan active instead of going to default. I paid them approximately $2,000 to keep my loan active. When I called again, they told me the money was not applied to my loan and that the person who accepted the money was not authorized to do so. I was told to send in paperwork of my income as well as my boyfriends income (he was living with me at the time). We did so via email and fax as suggested by the agent with CitiMortgage. We didn’t hear back. I called to find out what was going on and they told me, again, the person who took the information and set the payment amount was not qualified to do so and that my modification was null and void. I had received papers stating that my home was being foreclosed and that I had until August to move. This was in June of 2011. This game they played has caused me a lot of problems and losses. I know I can’t regain what I’ve lost as they were personal. But I don’t think CitiMortgage did anything to help the situation. I don’t know if I qualify to join the lawsuit against them or not. I wanted to let people know that there were other people out there who were hurt by this Modification of CitiMortgage. I have lost my home, my family, and money. When I finally moved out my money was being held in Limbo. It wasn’t being applied to my loan status, they just “held” on to it. I still don’t know what happened to my $2000 and feel like CitiMortgage pulled a scam on me. Since the foreclosure action was started and all the problems I’ve had with CitiMortgage, I’ve developed health problems. My ulcer has worsened as well as developing other problems from their constant lies. Do you think I’d qualify to join the lawsuit against CitiMortgage? I would appreciate any input and if I stand a chance of getting help with this. Thank you for your help. Linda Sanders

  11. Keith Roberts Says:

    I started a loan modification back on October 2014 with Credence Law group they told me that thy wll help me to get my loan modification in 2 months. They asked me to pay around 394.00 dollars to send it to a trust fund to show the bank good faith that we are willing to pay. On May we paid the total amount I was supposed to pay the but they still wanted more money and did not do anything to help me with the case. On May 2014 I called them to ask them for letters or proof that they were in communication with Citi and what Citi was doing regarding the process, they never send me anything, so I proceeded to fired them. I call Citi and requested to start a loan modification process We gave them everything they requested and on July 9 CITI started the process of foreclosure. We asked the representative in charge of our case why our house appeared on the public records a foreclosure and she stated that they can start and continue with the the process until they get the approval or denial of our modification. Right now I don’t know what to do, 1st, THE LAW GROUP THAT I HIRED WONT ANSWER MY CALLS AND THEY DONT WANT TO GIVE ME THE MONEY BACK AND IF CITI denied MY LOAN MODIFICATION REQUEST I WILL LOOSE THE house. I thought that when you are in a modification process the bank is not suppose to go any further (in this Case starting a foreclosure process) until we get a response from the underwriters in that way if the case is denied they can give me other options to keep the house. I guess that ids not the case with this company. they are not planning to help me any further they just want to take our house. I HOPE I CAN PARTICIPATE IN THE LAW SUIT TO HELP NOT ME BUT every OTHER PEOPLE THAT HAVE A SIMILAR SITUATION WITH THIS BANK. THEY REALLY DO NOT CARE ABOUT LIVING PEOPLE IN THE STREETS, THEY JUST cARE ABOUT MONEY. THANK YOU

  12. Anita Curran Says:

    August 8, 2014

    I am seeking help because I was in a Chapter 13 and a loan modification and Bank of America transferred my loan to Service Portfolio and CitiMortgage has me scheduled for a August 14, 2014 Unlawful Detainer. All of this happened doing the times of the recent settlements of Bank of America and CitiMortgage. I reported my loan to the U. S. Attorney General Mortgage Backed Secuity Fraud Unit. My property was forced into foreclosure. I recently received a Forced Place Insurance Claim for Class Action Lawsuit. I have the original policies of the forced place insurance. MeritPlan Insurance Company. My loan was also signed by the robot and I have the documents. I have constantly tried to go through Chapter 13 and get modifications. Citimortgage fraud hit Missouri very hard.

  13. Jack Byer Says:

    Is there any way we can join this class action suit? We have been in modification for almost 2 years and still have not been told that it is final. Why? What is taking them so long? Heard it was to be 3 months but will be 2 years in October 2014. Please help

 

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