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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 was working with citi mortgage on modification of my loan due to loseing my job. I applied for hamp program to modify my mortgage. I was told that i would have to enter a mortage forbearance program on a trial period Ihad no other choice so they modified my loan to 416.00 a month. I sent in all the required documents to modify my loan and was told to call back in a month. Called back an was told that i was pre quilfied and to keep makeing my adjusted payments. This went on for a year… i was told that i was guaranteed to receive a modification on my loan and to call back month after month with the same statement. In February after a year and a half of getting the run around, i was told that wells fargo owned my loan and all the prequlified and guaranted to get a modification were off the table.. you see wells fargos rules about modification were different from citi mortgage and according to citi who i found out a year and a half later was managing the account for wells fargo. Wells fargo dosent see unemployment as substantial income, but citi does and that is why i was prequilifed an guaranted to get a modification. I tryed in vain to save my home and got nothing but false hope and broken promises.. how do you not know that your manageing an account for a different bank and disclose this information from you customers??
I need help if ANYONE has a direction or someone to talk to PLEASE help me.
Robert koehler
Solaryield@gmail.com
I am currently having Problems with CitiMortgage. We have sent all required information for a loan modification and Citi keeps requesting more material some of which has already been sent several times. How do I get involved in this class action suit?
I found a website where you can sign up to participate in a class action law suit if the courts decide to hear it.
Go to [REDACTED BY MODERATOR – LINK LISTED IS NOT A LEGAL RELATED WEBSITE OR LAW FIRM] and enter your information. It’s the only place I’ve found so far.
I fought with Citi, I paid them “trial payments” they never applied to loan. They turned around after and told me there was no way they could modify my loan because of my type of loan. They Sold my house for $50,000 under loan value locked my house down from my access a month before it was legal in court. It was my children’s house only house they knew for 9 years, and Citi couldn’t modify….I am heartbroken.
It is a shame what the banks are doing to homeowners, My servicer is BOA and CityBank NA is my investor, I have tried to get a modification for 5 years, The investor will not modify my loan!!! Now I have to complete a short sale.
Can no one answer the main question?
How do we involved in the Class Action?
Good Luck everyone. We need to stand together!!!
They done me the same way I western Union then money and they sent it back.They was taking money out of my monthly payments for insurance that I knew nothing about until the State Attorney General contacted me about it.They was to apply it back to the loan but the amount of the loan never went down for 4yrs. I lost my job and so did my wife and I called them and told what happen and we both was getting unemployement checks and can they lower our payment. They said no and that was our problem. We have to move out our home the day after Christmas in 2007.We done a modification before the foreclosure and the interest went up to 11% and Icaught iton the 2nd day of signing the contract. When I called they said it was a done deal.I told them i would file chapter 13 and they told me to go ahead and they will go up again in 6 months.I talked to a lawyer and he told me to walk away because they wont let up.
We have also been through the same thing with CitiMortage. They had sold our house on the Sheriff’s Auction even though we complied with everything. We were able to prove that but and they needed to Null & Void the foreclosure. However, they still went back and said we owed way more money than possible – forcing us to file Chapter 13 bankruptcy.
Looking for an attorney to handle my “loan modification ” all requested paperwork has been sent in time and time again….they kept me on trial payments for 2 years….never getting the loan mod and now they have tacked $10,000 on to the back of my loan and took it from 16 years remaining to 40 years remaining! Can someone please give me a contact? Thank you!
They did the exact same thing to me. I had equity in my home, but because they didnt do their due diligence and check on my property taxes to escrow in the year after I purchased it they tried to charge me 2008 taxes, 2009 taxes, and 2010 taxes. I received a letter from them in June 2009 doubling my payment. The same month I had my second brain surgery and got divorced! They added 10,000 on the back of my loan too! I thought I was going through the HAMP modification. I talked to HUD counselor and everything! Can anyone help us?
i also have been having major problems with citimortage . i started on this loan modification process and i have also sent copies after copies of my personal paperwork . made more than 50 calls to them , but something always seems to get lost in the mail . i am a veteran on disabilty . and trying hard to make ends meet . i dont want my house for nothing but truly thought they woul work with me just alttle bit because i have to many health issues to take care of . i am asigned a person to handle my case for me but only get repeated requests for the same paperwork . i to dont sleep atnight worrying about this . would love to join in on some kind of lawsuit . only because they are the most careless people i have ever heard from in my life .
I made all three of the trial payments on time and was represented by a law firm and paid them $2100.00 to handle the modification for me. I got the modification papers back only to discover that the fees and charges
to the orgrinal loan amount where added to the principal balance inflating it way over the current maket value of the property. Now I do not know what to do. Can someone, please help me. I will be facing forclosure again.
I can not help you, however our story is the same… we were in trial for 9 months & out of no where we received foreclosure papers. The explanation: “part of the process when you’re delinquent”. I waited daily afraid to answer my door, of fear of being put out on the street. My father passed away since & I received a small inheritance 12/12. I immediately hired an attorney, whom was no better, a waste of $3100.00 we were forced to Sign a Modication agreement which is just about impossible to pay, this past Dec 19th 2013. We are sick over this whole mess. we owe now more than when we started & have “0” equity in our home….Citi tacked on 140k to what we originally had left. We are in our 60’s, still here after 28 yrs….are forced to pay this amount & advised by our attorney this is all Citi could do (yeah right) & to Short Sale our home, make NO repairs & get out….Great Advice !
Still here with our 3 children all born here !!!
So Sad, so much for their bail-out, where’s OURS ???
we bail out Citi and others banks …but they feel t he need to help homeowners…Citi has me at interest rate of 14.75…I need help…and I would love to join class action program…