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Angry homeowners have filed a class action lawsuit against CitiMortgage, Inc. alleging the mortgage-and-loan company not only failed to deliver on its promises of providing borrowers with reduced loan payments, but also “financially devastated” them.
According to the class action lawsuit, CitiMortgage told homeowners that it could help them reduce loan payments by putting them in a trial mortgage modification program, based on the company’s participation in the U.S. Treasury Department’s Home Affordable Modification Program (HAMP), that would become permanent if the homeowner made reduced payments during the three-month trial period. However, even though homeowners made the monthly reduced payments that CitiMortgage asked them to make, and complied with the company’s requests for various documents in a timely manner, CitiMortgage allegedly denied homeowners permanent modification plans. This put some homeowners in even bigger financial hardship than when they entered the trial modification, despite doing everything CitiMortgage requested of them.
“Consumers that were rejected from permanent modification plans through no fault of their own should find themselves in no worse position than they entered it. Instead, [CitiMortgage’s] failure to honor its agreements and its misrepresentations and omissions about a program enacted to help homeowners reduce their payments and keep their homes have left Plaintiffs and Class Members financially devastated,” the lawsuit says.
The CitiMortgage class action lawsuit is brought on behalf of all persons in the United States whose loans have been serviced by CitiMortgage and who, since April 13, 2009 through the resolution of litigation, have complied with their obligation under a trial loan modification program and have not received a permanent modification pursuant to the loan modification agreement and have been harmed because of it.
The lawsuit is seeking, among other things, class certification, restitution and actual damages for injuries suffered by class members. A copy of the CitiMortgage Class Action Lawsuit can be read here.
Updated September 17th, 2010
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271 thoughts onCitiMortgage Loan Modification Class Action
I have a long story about CITI Mortgage also. My house went into foreclosure after owning my home 14years. filled for modification February 2008. That started this whole nightmare. 4 modifications, 4 trips to court, Attorney fees, I repurchased my home with another payment of over $3,000.00 paid to CITI just to lower my interest rate. My estimated cost to save my home was at least $20,000.00 It was 2 1/2 years off total blood sweat & tears. I am very interested in a law suit.
I am not surprised , I worked as contractor in Citi for few years and its the worst bank in every practice. Unfortunatly I had a mortgage through them which was written off couple of months back. I am in short sale process right now and need a letter from them that it was written off, they are forcing me talk to litigation attorney and when I asked for a confirmation letter he put me on hold and after 10 mins someone else picked up as if she was picking up first time..so that ass hole tranferred me back to main line..
First I would like to know why Citi Mortgage can get away with the way the di businesse. We went through a financial hardship. We were not eligible to refinance so out next choice a modification. I will say what a mistakwe. 3 years later and still sending them documents. Every time they change a processor on us we start over. This last year we have had 6 different processors. So we have started over 6 times. They have had sales dates and we have been able to have them stopped because our file is complete. Oh, but then we start all over again with a new file, new sale date. At one point, the day before a sale date we were told the file was incomplete. We knew they had everything so it was escalated and he sale was stopped. Now we are waiting to hear on a repayment plan. How much our payments will be on the late fees attorney fees. This is so wrong. They don’t care to help anyone. This process should be able to be completed in 6 months. We are told all it is is a call center for the ones helping customers with a modification. The modification denial letter stated one source they used was the letter stating the income of child support. We have been married 29 years and no child support has ever exchanged hands. Also they income they have listed for us is about 20,000 more a year than we have ever made.
CITIMORTGAGE HAS DONE THE SAME TO ME!! I am a disabled hard worker my whole life, until recently, that has been ripped off!!!! Took over a 1 1/2 years asking for the same information, over and over. The whole time I was making my payments, but they were not applying it to my loan, CitiMortgage was placing it into a non allocated fund. Which they would take lawyer fees and several other fees until I was served with foreclosure papers when my mortgage counselor said they would not do. This making me to be forced to sign agreements or lose my home. Convenient since value of my home is over $80,000 but only owed 32,000. But when all said and done, they tacked over $12,000 to the balance of my loan. Asked many many times fore an itemized statement of account. Bad service??? or Planned service??? Since then, I have not been able to refinance because they reported me to credit bureaus making my credit poor. no one will modify my 8% interest loan because of a year of CitiMortgage reporting bad. Is there any help out there??? If so, please direct me in the right direction to solve this.
I am having problems with Citi lying to me all the time, that they don t have my paper work after I sent 5 times
Please include me in the loan modification scam with citi mortgage. Citi mortgage apparently modified my loan, they increased it and charged me closing cost buildt into my “new” modified loan. They now raise the rate ever 5 years.
I am with citimortage and they have modified my loan as well and constantly selling the loan, they have me upside down with the remodifacation they did have the time I don’t even know who has the loan and then always being told behind on it , I have made payments every two weeks and getting now where, need help fighting citimortage
I have been paying my modification since 2009. They just changes the terms and said they are allowed to do so, without my permission. My interest payment was to be 5% max and they raised it to 5.38%. What attorney is working on the class action law suit? I need it!!!!
i had a15 year mortgage at $756 a month .they did a loan modafication witch added $10,000 on my loan and now i am paying $600 a month for 40 years .where did they help. they took advantage of me .
We had this modification, said it was a certain amount , we paid that amount then a few years later said that we were paying the wrong amount and we owed $12,000 at that time, we had to sell our home, buy back within a year later for double the amount and when my husband lost his job again, we were so upside down we lost our home. I would like to get in this civil action lawsuit, if they did not do that to us, we would still have our beautiful home. We are renting now because of their erroneous business tactics. Thank you!