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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
Citi had me on a trial period for 6 months. They decided to add additional;l 300.00 in the the permanent modification.
I didn’t know until I received foreclosure papers from a law office that my request for a modification had been denied due to not sending additional pay stubs which they supposedly had requested. We had been communicating via email, which I was saving, and have no email from them requesting that information.
I will be grateful if someone out there give me the name of the Law Firm that is in process of this law suite, I can be of a great help, I have enough document from City that they ripped me off and devastated my credit and financial situation for after 14 month of try, I HAVE MADE ALL OF MY TRIAL PAYMENT ON TIME BUT THEY DENIED MY AT THE END AND SOLD MY MORTGAGE TO ANOTHER LOAN SHARK COMPANY CALLED VERICREST FINANCIAL. Please Help!!
We were told many promises especially about the Deed in Lue program which we decided this would be the best way for us. We followed their guidelines, filed papers, sat and waited until the appropiate time had lapsed for the possible sale or short sale to happen. After which it did not. We were told them by Citimortgage that we did not qualify for the deed in lue program which scratching my head I had no clue why. We were also told in the very beginning that our property did not qualify for any of the FHA mortgage insurance that we had been paying all the time of the loan.
I worked with CitiMortgage for a Modification and was approved, assigned a Loan Modification Specialist and after speaking with my loan modification specialist Tracy; she said the underwriter did not qualify me for assistance. I was told to sign a Stipulated Special Forbearance Plan Agreement within 5 days. I attempted to contact Tracy immediately within 2 days and she never contacted me back until after the due date. Tracy finally responded to me and I was told that I would still need to return the Agreement even though it was past the Agreement Deadline giving Authority to foreclose. I made the 3 modified Payments of $10 and was foreclosed upon and claimed Chapter 13 to keep my home, Citi contacted me and assigned a new loan modification specialist saying that I would need to fill out the loan modification paperwork all over again. Citi-Mortgage has no intentions of helping any of us and they need to be fined heavily by the government for taking the $45 Billion in TARP bailout.
Right On!!!!
I eventually was in arrears and was only one month from losing my home. Fortunately, my employer hired me back and I terminated the process. Unfortunately, my employer just laid me off again.
My family home was lost due to negligence of citimortgage to modify our loan as promised . They did not offer any reason in fact said they didnt see in the file why they only said it was denied. Prior to this they denied ever receiving documents I sent many times. Citimorgage I live in pure hell because of citimortgage and I want what is due to my family due to bad faith handling of our modification promise. I might add that citi mortgage offered us the modification, we did not ask for it. They stole our home of 21 years. Please someone tell me who is handling these types of lawsuits. Thanks Michlle
There was a time I played that same game with Citi Mortgage.
Our house was sold while we were in pre- modifiaction period right after they took the three trial payments. How do I get involve in this class action suite, please help me too.
please please help us. my wife and i have been told we were in modification , were never in and everything in between.citi reps more than 8 contacted us never getting the same story from anyone at citi .we submitted documents no less than 5 times for modification check stubs,list after list of other information to remain in foreclosure.please help us find an attorney with whom we can contact an join in a class action against these incompetent thieves.PLEASE HELP US email is rcraign@hotmail.com. we will lose our home if we have no help. we are running out of time and hope. this has been a nightmare!
I need to join the class action suit against CitiMortgage. They have denied me for 5yrs to modified my loan. At present they are charging me 11.59% interest. And insist there is nothing they can do. The stress of this whole ordeal has taken on toll on me and my health.
I have been going through the same process now for modification of my loan it has been 7 months and I am continuing to send. Documents that they have lost or say have expired. My sister is helping me and she is suffering with health issues over their constant request of documents that I cannot even get. I am only one payment behind 772.00 I now am behind on my loan because they keep adding late charges for this one payment behind to the tune of 3600.00 because they keep delaying the modification. My interest rate is 8.8 % my loan is 93000.00 and my house is worth 25000.00 so I can’t refinance. If anyone on here has found a way to stop the company from stealing from people that are already in distress please post it.