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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
After reading all these complaints , I am glad I’m not alone! Go back to 3/11 when I realized that my 5.87 %was lot higher than they were offering others. I have not been late with a mortgage payment for close to 12 years ( Citi the last 6), and thought the would rewards good customers , NOPE. I just retired and my income was gonna be about 20% less so I agreed as they said to be late for 3 months and they can start modification procedures. What a joke! Just like everyone else here, they kept asking for info they already recieved several times via fax and mail. Then I was assigned a new case manager. What a dummy . Ms Murdoch her name was.Never told me new paperwork was needed as she said it was mailed to me. I asked was it sent to property address or mailing address. She replied, “why would we sent it to mailing address?” That where I get my mail ! ( I moved to Florida, propery was in Ct.) Forward now to 5/12 after my credit was getting beat up ( was over 800), they started foreclosure ( incuring me costs with my HOA)when I finally get approved for modification. I make the first 3 good faith test payments and the modification gets done in 8/12. They send me papers to sign and notorized, did that without fail, even though payments were more and they only gave me 5%, well knew something was wrong so i called them ( which is always an endeavor, no ones calls you back or emails you , was told its ” company policy” not to email costomers back even though they put an email on all paperwork! So I get ahold of someone else , and they realize they made a mistake and will be sending new paperwork out, get those all notarized and mailed back out and finally good right? Wrong! Fast forward to 1/13 and I get a notice in mail that I owe 17,000 and house will be going back into foreclosure proceedings! I call them ask for explaination and the realize they made a mistake and never ” booked” the new mortgage !! At this point I’m still sending them in payments ( more than I was suppose to) as I didn’t want credit totally ruined. So now I’m waiting on my 1099 statement of the interest I paid as I have to get my taxes done. This wasnt send by Feb 1st (isn’t that the law? )They inform me because it was never booked , they just never bothered to send me one. At this point I get a “supervisor ” Caroyln. Nothing but lied and said things were mailed ( again to wrong address even after a specifically said to mailing address, she assured me it had, it wasn’t! ) So now ask to speak to her boss and I now get Steve. he seemed helpful and sent me new paperwork ( finally right at 3.5%)in which I promptly returned and he took next payment ,3/13 ,over the phone. 2 weeks later, I look and it says I’m still behind ! I call him and he tells me it still wasn’t booked yet! How long could it take??? Now this whole time I’m asking for my 1099 form which he says he will give me number for their “tax dept”. I call it and it just send me back to CS and the next guy says they have no tax dept! Get Steve back on phone and he tells me he talked to them and it will be mailed next week . Well when it doesn’t come in the next week I send him an email and he responds they aren’t going to send it out until it books which he say will be done tomorrow ! Another lie from Citi ! So I’m still waiting on both mortgage to be booked and forms to be sent. I have never dealt with such clowns at a company before like this! I would love to be part of any class action lawsuit as they really hurt my credit and purposely try to get customers to lose their homes. Does anyone know the email address do anyone at the top of the food chain at Citi to make a formal,complaint? I kept all paperwork and email in relation to this case. I will be looking for a new mortgage with another company soon as they book it. Feel free to email me any questions…
In response to Citimortgage’s settlement information on their website I had inquired and completed the paperwok because my property is in negative equity but i am current on the payments. The rep from citi assigned to my case did not read the paperwork i sent and assumed i was in foreclosure. When I told him this was a second home in florida he gave me a number to call to refinance and when I call they will have my file. Why couldn’t he just refer the file to them, I asked and argued about he had no answer. I expected to receive a call from somone that knows my situation based on the paperwork and who whould know the best option. Instead they are giving me the runaround.
CitiMortgage foreclosed on my house after desperately trying to work out arrangements to refinance it. My parents purchased the house in 1976 with a second on it. After my father passed away in 2003, I purchased the house because my mother could no longer manage it on her SSA check. I’d like more info on the class action lawsuit against them. NO ONE SHOULD HAVE TO GO THROUGH SUCH DISTRESS AND DEVASTATION AS THAT!!!
A friend of mine received a letter stating because of this lawsuit, her entire mortgage owed $50 + thousand has been forgiven therefore she no longer owes any on her mortgage. She has a zero balance. This absolutely makes me want to freaken vomit since I make my mortgage payments on time. The rest of us hardworking and paying citzens will now pay for her and everyone else. DISGUSTING!
I was in the middle of the modification process when in the middle of a conversation with their rep, advising me to send an update of our bank statements- said oh my God. Your home was already foreclosed and is now owned by the bank. !!!! Weeks and months of sending information, hundreds of calls to the modification dept.-was turned down then they said no problem, your income has changed lets restart the modification program…I asked about the forecloser processor and they said bot to worry that the forecloser was stopped because we were in modification process. I continue to ask about it and they would say don’t worry this won’t happen as long as you are in the modification process…to the reps surprise and my shock, my family home was taken away and we were given less than two weeks to vacate. That home was in our family since 1969 and in one swoop…it was taken away because one department didn’t communicate with the other and an attorneys’ office (which was exposed in fraudulant practices) -All the months of sending in paperwork and hundreds of calls…still didn’t stop loosing the house.
Modification “process” has been going on for 3.5 years (!) now with no end in sight. Repeated lies, fabrications, inconsistent instructions and updates. Refuses to answer legitimate questions regarding incorrect information on modification docs. Repeatedly claiming that we didn’t make payments when we have proof, only recourse is to litigate for modification and damages. Citi is not at all interested in keeping people in their homes and is quite obviously too big to manage processes and finances.
I’ve owned a home since 2003 that has been funded with Citibank. Payments have always been ontime and I can say there hasn’t been any issues with Citibank untill recently. When interests rates dropped I tried refiancing, but couldn’t due to the fact I was upside down in the loan. Oh, well not a big deal I guess since I had a fixed rate at 5.5%. Left things alone and went on with life.
In September of 2012 my wife and I purchased another home as a primary eventhough I’d use the first one a few times a week due to it being closer to my business. The two homes are 112 miles apart.
In December 2012 Citibank calls me offering to refinance with them for a lower rate. I told them I’ve tried it in the past with no luck but they said there’s a new program in place for people upside down and who have continously paid on time. I decided to give it a try. The Process went really easy as far as answering the questions and suppling paperwork. Within a couple weeks I was approved and inside a citibank branch signing the final documents.
Instructions were to skip paying the January payment and first payment would be due Febuary 1st, which I made. I was gone for a couple weeks the beginning of March and didn’t get mail till the later part. When I did check the mail I found 10 letters from Citibank either stating I was late on payments or that the new loan was no longer being honored. This was after all was say and done. On top of that they reported it to the credit B’s which killed my credit.
I’ve talked to a bunch of Citibank people but no one has any power it seems. They said it was done because our new home was listed as a primary resisdence. Citibank dropped the ball as far as I concerned. They screwed my credit, which is everything, and on top of that completely jacked up someones life who was financially lucky enough to make two house payments. I make payments on time to keep a high credit score. You take that away and now there’s no reason to pay them. The March payment was made but any further payments will halt untill they give me back what was taken.
Citi sold my loan 3 days prior to what was to be my last payment of a 6 month trial modification.The new Servicer will not take my final payment, they say they do not have the paperwork from Citimortgage yet. and Citi will not take my payment either. I feel like i am being railroaded into forclosure.
citi bank is the worst they came to us with a loan modification and said it would save our home we bent over backwards getting them check stubs and what ever they wanted or needed!!they strung us along for months then when I was sick of it I called and the skunk on the other end of the phone said oh no you were denied months ago we are foreclosing in a week unless you can come up with $20 thousand dollars!!! I was so pissed that they continually lied to us on the phone saying how good the modification was going they just needed one more thing then to pull the rug out without any notification!!!so we ended up losing our home!!!
I now refer to them pleasantly as Shiti-Mortgage. I struggled to get a loan modification. I called them daily for nearly a year. Once I was granted a loan modification it wasn’t the original one that I agreed to. It took too long for the documents to be returned. I was foreclosed on and then they gave me another modification only to keep screwing with me. I received my modification in 2010 and they keep adding foreclosure costs to my loan two years later. They withdrew $5500.00 form my escrow account causing my payment to sky rocket. When I asked for an explaination they told me it was a “Foreclosure Tax”. How can they charge me anything for a foreclosure that happened before the modification? No one can explain this to me. I’ve even gone so far as to file a complaint with the Minnesota State Attorney Generals office. Citi hood winked them too and they couldn’t help me either. How can Citi do what they want with no regulations or consequences on their part? It’s impossible to get any where when you can’t contact the same person twice. Don’t be fooled by the recorded conversation, they don’t do that. A represenative laughed at me when I asked him to pull the recording for proof of a previous conversation. He said “do you really think we record conversations?” as he laughed on the other end of the line. Once you are on the Hamster Wheel you can’t get off.