Citimortgage
Mortgage Servicer Withholds Two Thirds of $27,000 Windstorm Claim

I have had my loan with Citimortgage for approximately three years, since the mortgage was purchased from Principal Mortgage. My loss occurred on 2/22/07, when a tree fell during a windstorm and destroyed a brick outbuilding in a heavily wooded part of my property. My insurance company is State Farm, and they quickly assessed the situation and gave me a fair settlement for my loss, which amounted to $27,000. Of course, this amount is over $7,500, and the check issued by State Farm was made out to Citimortgage and myself.

I did my part and sent the check for the entire amount, endorsed payable to Citimortgage. Enclosed with the check were an appraisal for my property, pictures of the location of the loss, and a written explanation of where the loss occurred.

They sent the first draft quickly and efficiently for the first 1/3, or 9,000. Since that first draft, I am at a standstill. I can get nowhere with them, I can talk to no one of authority, and I cannot get anyone to call me back concerning the remaining 2/3's. I have told them that I am not rebuilding that brick building in the wooded part of my property because there are many other trees which could do similar damage, and I would like the remaining 2/3's sent to me.

This raised a lot of controversy, and they told me I had to rebuild it. My mortgage record is perfect, and I have never had a late payment. The equity in my property is over $230,000. With an appraisal included, it seems that their interests are covered and they have no right to keep the remaining 2/3's. I told them to send out an adjuster to view the prior location of the outbuilding, and they said nothing.

After about 10 more phone calls and 2 more reviews of my record came another decision. They said they could take the remaining 2/3's off the principal of my mortgage, or $18,000. I feel as if they are stealing when Citimortgage offered this to me. Are they actually trying to profit after my loss and my cash settlement? Where do I stand with Citimortgage? It seems that if I took them to court they would surely lose in this situation. Thanks for any feedback, and I eagerly await your comments and suggestions.

Company: Citimortgage
Country: USA
State: Ohio
City: Columbus
Site: www.citimortgage.com

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