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.