Save Your Home

Citimortgage has halted foreclosures in the majority of states across the country as allegations of improper internal procedures have been made by Attorneys General and investigations are pending.  For almost a year, homeowners have been complaining about abusive practices that resulted in losing their home, but up until now those complaints have been falling on deaf ears.

Citimortgage is an authorized lender under the federal HAMP option, whereby a loan modification should be considered prior to moving any homeowner to foreclosure.  However, the banks internal processing seems to be extremely unorganized, and could even be found to be negligent.  Many borrowers who were told they were approved for a loan mod, were then notified that there home had been moved to foreclosure.

Since Citimortgage is stalling their foreclosures, does this mean that borrowers will be able to stay in their home indefinitely?  Probably not, but it does present a unique window of opportunity for homeowners to begin pursuing a permanent loan modification again.  Since the bank would rather have some payments coming in on each mortgage than absolutely nothing, they will likely be a whole lot more cooperative this time around when a borrower asks for a loan modification.

How can a Citimortgage homeowner take advantage of this new turn of events?  Well, now is the optimum time to contact the bank and tell them that you want to re-apply for a loan modification.  This time, however, make certain that your application is completely correctly so that you have the best chance of approval.  Your financial statement, detailing your income and expenses, must be prepared so that it proves you meet the approval guidelines.

The combination of the Citimortgage suspension of foreclosures and your perfectly prepared loan modification application could be the magic formula to ensure that you get help to keep your home with a permanent loan workout.  You may want to use a software program designed specifically to help borrowers complete their application correctly-just to be sure that you have the best chance of success.

Prepare your application correctly!

Susan Gregory is the author of two resource books for homeowners and real estate professionals, the best selling The Complete Loan Modification Guide Kit and The Stimulus Book-HAMP & HAFA Edition.  She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies.  The Complete Loan Modification Guide kit provides a valuable resource for borrowers that includes a step by step handbook, required forms, and a software program that mimics the federal approval triggers for loan modification.  An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications.  Thousands of homeowners have been helped using these materials.  Visit for more information.

18 Responses

  1. Susan Said,

    Let me be the first to say that Citi is playng games and has no attempt to modify loans. The bank it’s self sends you offers of help while the attorneys file the paperwork in court.

    Posted on October 18th, 2010 at 4:11 pm

  2. Julie Said,

    I agree with Susan. I have been trying to modify my loan with Citi for THREE YEARS!!!! The article above states I must be able to “meet the approval guidelines”. What are they??? Every time I ask a rep at Citi Mortgage they can’t answer me. I ask them exactly what the “template” is, what the qualifying ratios are, what payment are they basing the approval on, etc. – no one has the answer. I asked them to explain “NPV” and not even the SUPERVISOR could explain it. SHAME on them ~ I hope they are exposed for the fraud and misrepresentation they have been doing since this whole mortgage mess started!!
    And by the way: The “games” and appearance that they don’t know what they are doing is part of the game: They know EXACTLY what they are doing. They make NOTHING on a loan modification, and make a HUGE PROFIT on foreclosures. Why do you think so few are going through?

    Posted on October 19th, 2010 at 11:30 am

  3. Reggie Said,

    I applied for a modification with Citi in November 2009. At that time I was given a trial payment that I was to pay for 4 months until they let me know if I got the modification or not. Now this trial payment was given to me via telephone, I never got anything in writing to support they had agreed to the trial payment. Well this went on for 10 months, I sent all the documents they requested on 3 seperate occasions. Same documents each time mind you. In September 2010 I got a surprise notice that my house was in forclosure and would be auctioned off on October 12,2010. I called Citi to ask why was my house in this status,and they conveyed that they had requested documents that I never sent,so they closed my modification request and forclosed on my property. I was never asked for any documents,so how could I send documents I had no knowledge of.

    Posted on October 22nd, 2010 at 9:44 pm

  4. Anne Said,

    Julie…how can you possibly think that they are making ANY kind of profit on foreclosed homes??? A lot of the mortgages are more than the homes are worth in this economy. Don’t get me wrong…..I’m going through a lot with Citimtg now too, but to think that they’d make a profit? No.

    Posted on October 23rd, 2010 at 9:07 pm

  5. TRACEY Said,

    I couldn’t agee more with Susan and julie! julie especially hit the nail on the head when she said that they make nothing on a modification and a fortune on foreclosures because they are INSURED for the loss. So, if they collect 500krate in insurance money on my house and they turn around and sell my house for 300K…. They have actually double dipped and made a huge profit!!!! I have lived in my home for ten years. We built it new and it was going to be our dream home that we retire in. My husband retires in four months. In June of 2009, I suffered a stroke at the age of 42 and I am now completely disabled. I am no longer receiving my salary and we are unable to meet our mortgage responsibilities based on just my husband’sincome. I have spent endless hours on the phone with Citi rep after Citi rep. These people are useless and are not educated enough to answer pertinent questions on the modification procedures. We have made several attempts to have the bank reconsider our mortgage term, rate , etc. to no avail. With all of the federal monies that were given to all these banks, if we DO NOT qualify for any sort of modification with a catastrophic illness, WHO DOES??? We have worked hard for 25 years, owned 3 other homes and never imagined that we would be looking at a foreclosure as we enter our retirement. SHAME ON YOU CITI! I am sure you will all get your million dollar bonuses that YOU DON’T DESERVE! YOU DON’T EVEN KNOW WHAT HARD WORK IS!

    Posted on October 24th, 2010 at 12:04 pm

  6. maria Said,

    To Anne
    The way they have made money is by pooling our loans and selling them as securities. They packaged these securities and insured them. Because they are insured, they stand to gain more by getting the houses back.
    Read all about it at

    Posted on October 25th, 2010 at 11:11 am

  7. S. King Said,

    All of you need to join a class action suit against CitiMortgage. They have been filed or are currently being filed in almost every state. Also visit for help. Use the steps to send Citi a qualified written request for documentation. If your home has equity and you have missed ONE payment, Cit might target you for foreclosure. YOU ARE NOT ALONE, I have a similar story with Citi, my uncle across the U.S. has a similar story with Citi, and every day I read many other similar stories. In my opinion, this is not clerical errors, robo-signing screw ups, or lack of proper documentation – in my opinion, it seems to be a pattern of organized fraud. Lets take back our America!!! Revolt by writing letters to everyone you know with your story and asking for help. Write to your state’s Attorney General (Attorneys General in all 50 states are currently investigating this issue). Write to the Department of the Treasury. Write to your local newspaper, radio and TV stations. Write to Rush Limbaugh, Michael Moore, Oprah or any celebrity personality you admire. Post signs in your yard telling everyone who drives by that you are a victim of unfair mortgage lending. Put bumper stickers on your car. TELL EVERYONE! This matter effects every tax payer in this country because the tax payers bailed out these lenders and the lenders did not comply with the terms of the bail out. This effects our reputation globally because these same lenders have sold our mortgages to overseas investors and in some instances by reporting inflated property values. TELL EVERYONE, “I OBJECT!”

    Posted on October 26th, 2010 at 2:21 pm

  8. TRACEY Said,

    After discussing this situation and MY situation with countless others, I feel as though Citi
    divised some of these mortgages KNOWING that people would fail out of them!

    Posted on November 4th, 2010 at 7:58 am

  9. Heather Said,

    Dec will be a year i have been fighting for a modification on my home i also have a lawyer working with me which you might think would help things i have constatntly faxed the same papers over and over along with my lawyer they say they get them go to the next process tell me they have nothing and to start over we keep all the confirmations on the faxes now i applied for a modification just 3 wweeks again after a year ago i applied they said i quialified and then said sorry we cant honor after my 90 days of payments were made so now 3 weeks have gone by my lawyer has called them everyday and not one returned phone call or anything in the mail from my modification papers.

    Posted on November 5th, 2010 at 11:44 am

  10. TRACEY Said,

    It is a scam. This is what they do, and what I have been trying to explain to people. You can NOT pay your mortgage, and stay in your house for the next two years! I don’t know your whole situation, but I do know that the longer you don’t give them one red cent, it is only then that you even begin to gt anywhere with them. It is 20 months for me, and I still have my home. I am at the point where THEY CAN KEEP IT! I don’t care:)

    Posted on November 20th, 2010 at 11:42 am

  11. Mary Catherine Said,

    All of your comments sound fimiliar…our story is much the same. My husband suffered multiple pay cuts, and we applied for a loan modification and were given a payment while awaiting approval. We paid our temp. mod payment on time every month, every month we would ask statis and were told that they needed more paperwork. We submitted the paperwork numerous times then one day in the mail we received 3 letters…the first was a receipt for the monthly payment as we request proof that they got the payment. The second letter stated that we were still being reviewed and that they needed further paperwork to determine things. Mind you the papers that they wanted completed hadn’t changed from the previous 6 sets that we had already submitted. The third letter stated that we were in default and that they wanted $30K within 14 days or they would proceed with foreclosure processing. Ironically, the 6th set of the papers I’d sent them certified mail as I was getting sick of them saying that we’d not complied. I also find it rather interesting that they changed our customer service representative monthly…they don’t want them to get to fimiliar with any one client. Every time I’ve called and spent hours on hold then the call mysteriously drops and they of course can’t call you back so you the client have to call back again and start over. Every person wants to ask you the same questions and the last time I called in having spoke with 5 people and answering the same questions over and over getting no answers I was transferred to the sixth person. She then starts in on me and I blew and said why don’t you review your notes as you and your fellow customer service dept persons claim to take extensively. Regardless, we are waiting for the sherrif to come knocking. Lastly, I requested copies of all our our mortgage papers from Citi and they couldn’t/wouldn’t provide them to us. They claimed that our state law wouldn’t allow them to give us the copy of the deed/deed of trust. I went to the court house and they showed me what they have on file and I did get copies of everything, but they didn’t have a deed/deed of trust, just a mers #. Does anyone know what that means?

    Posted on January 9th, 2011 at 2:22 pm

  12. Donna Said,

    Wow and I thought I was alone. Every story is the same but my ending was a little diffrent, after 3 years and the run around being passed from one person to the other refaxing document after document and call after call……. I finally got a call from a person claiming to me a lawyer from Citi telling me my modification was approved only to find out 3 days later from a modification loan officer who finally left me a voice message stating she was returning my call that in fact my acccount was never frozen and that my house I lived in for 24 years (yes thats right 24 years) was sold in auction on Oct.29, 2010 at 12:o5 pm. I tried to call her back only to be told that the only way to reach her was that the customer service rep would send her an email mark it URGENT. I made three phone calsl three different time in a 2 hours block but once again I never received a call back from anyone. I decided that since I finally was told her full name that I would try to reach her through the employee phone directory. I finally found her voice mail and her direct line. I called her extension over and over until someone finally answered when I ask for my loan modification officer by name I was told ” Her employment at Citi Mortgage was terminated the day after my home was auctioned” 24 years paying my mortgage I received a eviction letter from Harmon Law Office, who represented Citi Mortgage and I am now homeless. I lost my home and all the equity. So much for making my home more affordable..

    Posted on February 24th, 2011 at 8:14 pm

  13. Take em down with law Said,

    You can stop them very easy in a foreclosure cases in Ohio and other states you just need to know what to file and how to file. All of what you are stating in other comments is the mo of citi mortgage but all of you must learn the law on invoking the court for foreclosure. Citi in most cases does not own the mortgage and note the law is very clear .
    The Ohio Supreme Court ruled on April 6, 2011 in case U.S. Bank National Assoc V. Antoine Devall To have standing, as a plaintiff, in a mortgage foreclosure action, must a party show that it owned the NOTE and the MORTGAGE when the complaint was filed.
    Citi sells the mortgage in most cases to fannie mae you can check if your property is owned by them fannie mae on their web page. file in a motion to dismiss for lack of standing with all documents that fannie mae owns your property with the ohio supreme court rulling.. If you dont fight for your home you will loose it. they citi drags you along with programs while foreclosure is going on behind you back.

    Posted on September 29th, 2011 at 4:24 pm

  14. Cristina Said,

    I did spend 3 years try a loan modif, with citimorgage dont work out. Now I did a bankruptct chapter 7 and dont care …they can keep the house….my house is 100k less than I owner the bank…dont care….citimorgage can keep my home :)

    Posted on November 9th, 2011 at 3:51 pm

  15. Tracey Said,

    I have been doing the run around with Citimortgage for years and 2 attorneys later I am still fighting them. I am not a person who takes No without a fight! I want to keep my home and will continune to fight with whatever I have. I am a Realtor in Oklahoma and lost my income. My spouse has a very reliable income and we can now make our payments now that I have my license inactive. Not even an attorney can explain to me why we can’t modify or use the Obama plan. Something is very wrong with the system! I have read pages after pages of people all in our same situation but I guess because Citimortgage is bigger than us and has the money after the goverment bailed everyone out they feel they can bully the american people. If it wasn’t for the consumer they wouldn’t have a company and I thing all or most of these companies forget that. Whether it be a mortgage co, car manufaturer, etc.

    Posted on November 16th, 2011 at 1:26 pm

  16. Rick Said,

    I was making payments on my home with no problems, until Citi took over the bank that held the loan. That was four years ago and when all of the trouble began. With an escrow attached to the loan, it’s expected that it may increase with taxes and insurance premiums. However, I was being forced out as I see it…through the escrow account. I had my home for eleven years and would expect anywhere from an $8 to $12 increase each year to cover the increase in either taxes or insurance premiums. Imagine my surprise when the first year that Citi had the loan, they implemented a $35 per month increase due to a “short-fall” on our escrow account. Over a four year period, our monthly payments increased by $200 per month while taxes decreased and insurance premiums stabilized. For the 2011 calendar year, Citi stated that we required a $70 per month increase added to our current monthly payment. When I researched the annual property tax and insurance premiums required, they both added up to $1,500 per year. So why was I paying $3,400 per year and continuing to increase that amount when the required amount was not increasing? When speaking to the bank, they ignored my frustration and simply stated that it was due to a ‘short-fall’ that required that I pay more monthly to cover the taxes and insurance annually. With an increase of $200 per month on my monthly payments, I simply could not pay that much and seen that as being forced to leave my home. No one can explain to me why this happened or how it happened. I asked that the escrow be stripped from the loan so I could pay it myself, therefore saving myself $1,900 per year and $200 in monthly income. They would not do it unless I refinanced with them or paid the loan off first. Well, I had no choice but to give up and they foreclosed on my home. The home where me, my wife and my three young children lived for the past 11 years. I was willing to negotiate with them and talked with them about saving my home. The coldness experienced by them was staggering. They are more willing to sell at a sheriff’s auction for $20,000 rather than help me fix things and continue paying the $90,000 still owed on the loan. It just doesn’t make any sense to me at all. It didn’t sell at auction and was taken over by the bank for $24,000. From other homes in the same neighborhood that had been foreclosed on, my home will now sit and decay for years because of their neglect to help us with our problem. I just don’t get it. And any attorney we talked with just told us there was nothing we could do because the bank could afford to pay attorneys to fight endlessly where we could not. It’s just not right! Why did Obama bail their fat puggy behinds out and left us in dire straights?

    Posted on January 1st, 2012 at 9:45 am

  17. Lisa Herringshaw Said,

    In our situation, my exboyfriend and I (together 11 years) broke up and we put the house on the market. After being on the market for almost a year it had only shown 3 times and we finally got a serious offer of $130,000. Between the house and a home equity line we owed approximately $150,000. CitiMortgage would not accept this offer. I went round and round with them, and so didn’t our realtor. They still would not accept it. My final conversation with them ended with “I hope you ^&%$#@ get $20,000 at auction for it!”.

    CitiMortgage has NO desire to work with anyone….absolutely ridiculous.

    Posted on January 6th, 2012 at 6:49 am

  18. Lane Seaman Said,

    I really enjoy the blog post.Thanks Again. Great.

    Posted on August 3rd, 2012 at 12:03 am

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