Citimortgage
Foreclosure Referral After Trial Payments and a $9,238 Demand

I applied for the Homeowner Modification Program a.k.a. H.A.M. with Citimortgage in April. The bank put me in a trial period which was supposed to last for 3 months. However, the period lasted from June until December. During the trial period my mortgage payment was reduced from $3,079.39 per month down to $2,064.33 per month. After 3 months, Citimortgage was supposed to inform me (the homeowner) if I qualified for a permanent mortgage modification rather than being in a trial period. As previously stated, they informed me after 7 months that I did not qualify due to my equity in my home. They stated that I had enough equity in the home and that I could sell it to liquidate my mortgage in its entirety. However, I only own one house, and it's my primary home. I always paid on time prior to the trial period and during my trial period. I never missed a payment.

On December 02 I made my December trial payment of $2,064, and days after, I received a letter from Citimortgage demanding the amount of $9,238. This amount derived from the fact that since I did not qualify for the permanent modification, they demanded the amount of 7 months of regular payments rather than 7 months of trial payments. In other words, 7 months of regular payments totaled $3,079.39 x 7 months = $21,555.73. But the bank collected $14,450.31, which derived from $2,064.33 times 7 months = $14,450.3, which was sufficient to cover 4.69 months of regular payments. As such, I needed to cover 3 more months to cover a total of 7 months I was under the trial period. As such, per their demand letter I needed to come up with $9,238 (to cover 3 months) within 30 days from December 02. As you can imagine, I was in shock to learn that the bank had 7 months to decide if I was going to qualify, yet I only had 30 days to give them the money before January 02.

In December I became unemployed. I used to work as a Sr. Credit Analyst for a Community Bank which closed its doors in Dec. 2009. I could not pay the amount the bank demanded in 30 days. The first week of February I called my dad asking for help to come up with the money that Citimortgage was demanding. He sent me the money via wire transfer, including January's and February's payment amount. I called Citimortgage the second week of February to pay the amount of $15,533 according to their February statement, only to learn that my loan was in foreclosure and that my case was handled by an outside attorney by the name of David Stern in Plantation, Florida. I learned that this attorney was being investigated by the FBI and had a bad reputation all over the rip-off reports. So I had no choice but to hire an attorney (costing more money) to fight for my case and obtain figures ASAP from the law offices of David Stern.

I went to see my attorney for the first time on Feb 22. Today is March 23 and I am still waiting on reinstatement figures from the law offices of David Stern. I asked Citimortgage when they sent me to foreclosure, and they told me February 19. I don't understand how this bank took me to foreclosure if I paid according to their trial period terms an amount of $2,064 until December. In February Citimortgage stated they sent me to foreclosure because the amount of $14,450 only covered 4 months of regular payments, and as such I owe them 3 months of regular payments, automatically making me 90 days delinquent.

Since my career has always been in the banking business, they have dragged my credit down by lowering my credit score by 150 points and stating that I am currently in foreclosure. Now I am not only in foreclosure but cannot get a job as a Credit Analyst. Their actions have created a lot of damage to my family, my person and my career. I am even trying to bring my loan current, and they are taking more than one month to give me payoff figures.

I believe someone needs to help homeowners like me, who applied for this program in order to reduce their mortgage payment, only to find that their credit score decreased by more than 150, the bank puts them in foreclosure, and they now cannot get a job. This is not right, and I believe banks such as Citimortgage need to pay. By the way, my attorney told me I will most likely end up paying Citi's attorney's fees (fees for the Law offices of David Stern) because banks these days can do whatever they want. This is the reality of our country. Also, David Stern filed foreclosure without notifying me in writing, and this is why they want me to sign a waiver of foreclosure. Is this the price to pay for applying for a loan modification? Please help me. Hoping for a response.

Company: Citimortgage
Country: USA
Phone: 18007237906
Site: citimortgage.com

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