CitiMortgage – Family w/ Autistic Daughter, Father with Alzheimers, Homeless Despite Making Payments

They made 11 trial payments on time, sent in paperwork as requested and stayed in close touch with Citi.


“Citibank gave them a HAMP loan modification and took it away from them – because the house is worth more than the loan, so Citi will financially benefit from foreclosure”


Here we go with the NPV again…

You all ever wonder where those trial payments go?

I do…

Family faces foreclosure after following the rules

After struggling with medical crises and recession-related lost income, Susan and Robert Gerke thought they had jumped through every hoop that their bank, CitiMortgage, required for them to get a loan modification.

They made 11 trial payments on time, sent in paperwork as requested and stayed in close touch with Citi. So it came as a rude shock when they received the foreclosure notice on the San Rafael home they’ve owned for 15 years.

“We were so sure we could keep it and that they were really working with us, I just feel blindsided,” Susan Gerke said.

The house is scheduled to be foreclosed upon on Dec. 29, leaving the family of four – the Gerkes, their 22-year-old autistic daughter and Susan’s 86-year-old father, who has Alzheimer’s disease – without a place to live.

Their story mirrors those of thousands of other homeowners who’ve been denied long-term relief under the government’s Home Affordable Modification Program. The pace of conversion from trial plans to permanent modifications has slowed dramatically, dropping from about 55,000 a month early this year to just 28,000 in September, government records show.

What sets the Gerkes’ situation apart is that as longtime homeowners, they have significant equity in their home.

Penalized for equity

In fact, their attorney, Marilyn Sullivan, said the couple are being penalized for that equity.

“Citibank gave them a HAMP loan modification and took it away from them – because the house is worth more than the loan, so Citi will financially benefit from foreclosure,” she said.

Citi spokesman Mark Rodgers wrote in an e-mail discussing the typical approach to equity, not the Gerkes’ case: “In general, a borrower with positive equity in their property has the ability to refinance or sell their property and pay off the loan in full to avoid foreclosure. A modification is still an option if the borrowers’ income can support a payment that passes the (net present value) test when compared against liquidation.”

Net present value is a formula banks use to determine whether foreclosure or loan modification would be better for them financially. Under HAMP, banks may pick the option that nets them more money.

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19 Responses to “CitiMortgage – Family w/ Autistic Daughter, Father with Alzheimers, Homeless Despite Making Payments”
  1. asking george says:

    Does anybody know who is Bana CWB CIG HFI 1st Liens that my original lender per the notice Bank of America N.A. sent out last July 1, 2011. I had google the name but could not find it. Does this means that no lender to be found and my mortgage had already been paid for?

    • Sticky A says:

      We also are looking for WHO the acrynom BANA CWB CIG HFI 1st Leins is, as that JUly 1st letter from BOFA sent to us as well in California, as our loan servicer stated that THIS is the name of our creditor to whom our debt is owed.
      BANA : Bank of AMERICA
      CWB COuntrywide BANK (yes, we made payments to Countrywide before the BofA deal
      CIG: ?
      HFI: ? we can only guess here

      We have responded to this same letter back to BofA -NA in Simi Valley PO BOX (ATT: DVN) to please tell us WHO our creditor IS.
      We also disputed the full amount that they state is the balance owed, as our calculations, even with late fees & penalties was approx $4,000.00 less than theirs.
      We are approx 3 months late with our mortgage payments, also our home equity line payments, but our totals of the 2 is about same or slightly less than ‘current value”.

      Thanks for this thread & all relevant info. We agree with all here that we must stand up and fight for our rights and push these cases for rights of homeowners & citizens against the bank fraud taking over the globe.

      Sticky A.

      • asking george says:

        I called BofA earlier. The supervisor said the same thing he needs to research it to be able to tell me what CIG stands for. HFI, he ssid stood for Held For Investment another one said Home For Investment. They don’t know. He will get back to me in 72 hours. Yes, we need to keep on fighting.
        By the way have they reply back on your challenge letter you mention.

      • asking george says:

        By the way did you do securitization audit on your mortgage? do you know which trust name was it under? I was trying to search on the sec website but having a challenge locating my loan no. and the pooling.

        Pls do adv.

  2. iraj mohmadi says:

    Very,very interesting,
    december 2009 i was approved for loan mod (attorny genearl), country wide had settelment with ca ag
    paid 3 months what iwas ased to pay, never received any docs to sign, Bank of america rep call me
    to tell me i did not sign the loan mod docs on time so they are canceling due to change of the the program,
    so i had to send them same documents again and again, i was an employee of bank of america at that time
    Because i give some advise to my client to seek legal advised all the suden they let go of me. i asked to provide me as who is the mortgage holder (in september), I received a letter that this loan is owned by investor which are bana, cwb,cig,hfi no phone ,location, simi valley ca. Iasked again this time the ivestor and servicer is BOA in thosand oack ca, in period of 35 days this happend, but they can not provide me detail as when this chnged place. i finaly smiled after 2 years so i am going to the law office with a letter that they can not provide me with all loan origination papers, loan application, disclosures, hud, respa and rest……..
    People by saving your house you are saving our country, Keep fighting never give up for sake of our children.
    Good luck

  3. dcbingo286 says:

    I attempted in Dec. 2007 to get a loan mod from Wilshire. After 5 months of the “run-around”, I located Jay Mermont’s email address and sent him a pretty nasty email about his “loan mod service dept.” I had previously worked as a servicer in a “big bank” which I explained in my email. Don’t know if that helped, but the following day I got a phone call that my loan mod had been approved and papers would be sent to me over-night. The loan mod ends 12/2011. I did not ask for, nor receive any RESPA, TILA, etc. forms. In the meantime, my loan has been transferred to BofA for servicing.

    I sent a RESPA letter to BofA and asked for a copy of my note. They sent me the first four pages only (incomplete). No assignments, no endorsements and I know my loan was sold several times since 2003. They stated in their letter that they were my servicer for the loan only. My loan is owned by Aurora MSF Lehman (extinct). Three days later I received a letter from LandSafe Servicing stating they were my servicer.

    I was searching through some papers and found that when I took out my original loan (with Flagstar Bank) and then refinanced the following year, Flagstar was sent a letter (certified) requesting they record their mortgage as “satisfied”. Flagstar sent a Lost Mortgage Affidavit to my new lender which the new lender immediately returned it (certified) stating that Pennsylvania does not accept Lost Mortgage Affidavits and it was Flagstar’s responsibility to record the satisfaction. That was in 2003 – it is now almost 2011 and Flagstar NEVER recorded a satisfaction for my first loan.

    What a mess….

  4. david black says:


    T he Iowa Attorney General is very good at rationalizing away FRAUDULENT conduct and misrepresentation to homeowners who are applying for mods. First of all. all of this discussion about cost of mod must be less than the cost for foreclosure is discussed after all the homeowners applied for the home loan mods.

    As I stated before, the Net Present Value model is flawed on its face in the FED Reserve guidelines since it doe not show mathematically how the calculations are made.

    Secondly, since a MOD is a new loan the lender servicer MUST provide for all disclosures up front about the mod before the applicant or homeowner signs anything.

    that includes by the lender all of the TILA and RESPA. so if the homeowner is eligible and has not committed to the mod , the lender MUST show all of the TILA docs BEFORE the mod and NPV are calculated and the dual track feature as well.

    The IOWA attorney general is allegedly validating fraudulent conduct by these lenders.

    the HOMEOWNERS should request all the UP FRONT DISCLOSURES

    the NPV is calculated by determining how much the LENDER will make from fees from the trust upon foreclosure plus the equity from the HOME>

    That is a false calculation on its face because the homes are moving toward being worthless and homeowner eguity should NOT be used to calculate NPV for a homeowner who is NOT even behind in their payments.

    with interest rates on mortgages falling and home values falling what these lenders are doing along with the alleged forebearance of the Iowa Attorney General is giving the legal ra tionalization

    for th e banks to get out ot the ASSET on their books that is going SOUTH in value.

    in other words, the banks are insolvent and they are being propped up with phony numbers.

    Having someone do something with a loan

    and NOT tell them about it beforehand is INTERSTATE FRAUD and RACKETEERING.

    there are two federal class action lawsuits and one state lawsuit for RICO now in California , Kentucky and Illinois

    for this very thing , misrepresentation by the big banks and servicers to the homeowners.

    all I can say is I have written a dozen letters to congressman and senators and federal agencies a nd they are all switched off for using their regulatory powers to stop this.

    the OCC of the us. treasury dept ( comptroller of the currecny IE OCC) has REGULATION 30 powers already within their federal statues to


    Mr BILL WALSH of the OCC is allegedly stonewalling me and thousands of others. There may be as many as 500,000 complaints about this problem at the OCC and allegedly they and Senate and House Banking Committees know about them and the attorney generals as well. and they are all allegedly looking the other way while this alleged fraud goes on.

    so bottom line

    what I did is before I signed anything I am my representative

    requested fuil Truth in Lending documents, RESPA HUD 1 Documents. when I didnt get them I didnt sign.

    it is a new loan , the so called MOD then it must conform to NEW LOAN federal and state requriements.

    Mr IOWA attorney general is flat out allegedly wrong on the math and the law.

    and he is the alleged reason why the banks continue to do this, no one will stop them

    so I pray ever yday for a miracle. that a federal judge like a hundred of them unanimously

    order that all foreclosures to STOP and that any actions to mod must produce TILA Docs etc and dual track must be disclosed u p front to the homeowner.

    and NO foreclosure occurs without ARBITRATION first between bank/lender and homeowners and that all foreclosures for the last four years are NULL AND VOID and full restitution be made to the homeowners for their stolen equity.
    best regards
    David B.

  5. yvonne says:

    Thank you for that, David…good job…I am believing that the so called modification or an attempt of it is to recreate a new mortgage and note so they can eventually say they do own the note and mortgage when they proceed with foreclosure…it is a trick to allow the homeowners to sign off to that…imagine…they seem to have endless supply of tricks up their sleeves….
    I was NOT behind on my payments like so many others …I now understand why they are trying to foreclosure across the board….the bank never had any risk at all, so they made a landfall with our tax dollars and then the insurance from the foreclosed properties and then buying it back pennies on the dollar and then reselling…both the investors and the borrowers are being defrauded…there has to be a bottom up with this nation and these fraudsters so we can start over fresh and wiser….

  6. Linda says:

    I have a disabled husband and son. I lost 15K in income in a job where I am one year away from vesting and at 53 I need to be vested. I contacted Chase Bank BEFORE I fell behind……….of course because I have equity they denied me, but by that time I was 90 days behind. The house got it’s first filing for foreclosure notice — I contacted every entity I could think of including the state attorney general, my state rep, my congressman……….FINALLY after being declined by CHFA once – we received an approval by the state in which I live. It’s a horrible, emotionally exhausting fight, and while we are trying to do the right thing we are called deadbeats by idiots who’s blood runs cold. Let them be in that boat ………I’m praying for this family. If they haven’t already done so, they should be contacting every elected rep they have a be publicizing this on the news!

  7. JS says:

    This is one of the “dirty little secrets” of HAMP. The FDIC HAMP Guidelines, state on page 3, that the process will,

    “Mandate that the cost of the modification must be less than the estimated foreclosure loss.”


    This means that homeowners who have substantial equity in their our homes are categorically denied a modification and forced to foreclosure!

    Furthermore, the Attorney’s General are supporting this apparent flaw. Iowa Attorney General Tom Miller, stated the following in his testimony to the Committee on Banking, Housing, and Urban Affairs, on November 16, 2010:

    “To be clear, the States do not believe that every foreclosure is a tragedy that must be avoided. To the contrary, we have consistently stated over the last three years that we are only interested in modifications where the cash flow from the modification exceeds the expected proceeds from a foreclosure sale.”

    This certainly seems counterproductive, as those most vested in their homes are categorically denied modifications. It is also an indication that the HAMP program’s very intent is to help Mortgage investors, not homeowners. Helping some homeowners is just a coincidental benefit of the program, that is being falsely hyped by the government and the banks as an act of good will.

    If a homeowner has equity, the banks know, up front, that they will ultimately reject the modification, but start a trial mod anyway, so they can squeeze out a few more bucks in trail payments, penalties, and fees, before kicking them to the curb. It is completely heartless.

    This is America?

  8. Unbelievable nothing has change actually its getting worse, all these is in the media why is it that nothing is getting better, or better solutions to save the homeowners? I can find a reasonable explanation of why people is not up in arms (i don’t mean real arms) but protesting all over the place
    I saw a lot more protest when healths care reform and is not even close to the extraction of wealth to banks from the middle class and the financial mess we living thanks to them
    Something has to be done these banksters can not keep doing these injustices to the American people, there is nobody in the whole United States than can stop these crooks, nobody?

  9. Well..let’s send 2010 out with a bang…and start Jan. 1, 2011 a WHOLE complete different way….OUR WAY….Criminal acts, fraud, racketeering, lies, corruption, ponzi scheme…cover-ups of all criminal acts approved by the courts, the government, the FBI, the Justice Department, Investigation’s….Laws have meant nothing…so there are no laws…what is good for the goose is good for the gander. Arresting inside traders is fine as long as they are sent to prison…but is everyone working on that corruption ? Why and where are the investigators that should be arresting the racketeers at the banks..financual industry…the ponzi tacket? We need to demand action…enough time has gone and nothing has been done…where are the indictments ??…the ones quilty are waiting…Must we remind them that in the 80’s many…many were sent to prison..those involved in the Savings and Loan crime…That did not shaft and ruin a whole country and the world….this criminal plot/ploy has…BIG DIFFERENCE. This has taught many here and around the world that this country and the financial industry cannot be trusted….a lesson well learned. Now demand. rally, protest, send letters and e-mails to every single person in government….to your courts, let your voices be heard. The wheel that squeeks the loudest get the oil first….and they got the bailouts….and they are still getting protection. And the citizens got shit on.

  10. John says:

    It will get uglier before it gets better.

    The American citizen has not been awakened yet.
    When he is, look out!!!

    For way too long these financial beings have had citizens in their grasp so it is understandable that they still think they do!!!

    Our government is slow to catch on but they will when the voters shout loud enough.

    I don’t think there will be anymore financial institutions bailed our or stimulus money given to them!
    Remember what happened to the Jews in Germany when one by one they took Jews by occupation to the camps and nobody that ws being taken said anything. Finally they came after those that kept quiet and there was noone to protest their treatment.
    Same today, those up to date on their mortgages do not have sympathy for those that have lost jobs, etc and are kicked out. Soon more will be out of work than working. Don’t believe the stats that the economy is turning around, it isn’t, open your eyes and look around at the empty businesses.

    • yvonne says:

      You are so right… I was just about gettin ready to say something similar…I see that happening today here in America…slowly but surely the banks et al are stealing our freedom and also leading to the slaughter…with not much objection from the masses…they are introducing so many distractions into the media to divert the attention from these foreclosure issues..
      Those that are casting judgement upon those loosing their homes are obviously ignorant and lack knowledge of the truth, and when told the truth, they reject it in their self righteous way..l.yes their day will come…I hope for their sakes they wake up early and smell the roses…so to speak…
      The Bible says my people perish for lack of knowledge and for rejecting the truth…
      Let me recomnend an interesting book…”Lenders are using foreclosures to stealo us blind. Uncover their game plan and learn how to win!…WINNING Against Foreclosure- A Strategic Guide by Richard Merrill Kahn…a former insider of the securities etc…so those who are not in foreclosure YET learn what part they continue to play in the banks long term scheme of strategy to eventually defraud them of their home…
      Ever since I found out some of the many frauds that are just being exposed now, I have not participated in the sale of any foreclosed homes, nor do I participate in modifications or shortsales…and am so glad now …I wanted to have clean hands and clean income…my God given conscience would not allow me to gain off anothers’ tragedy…loosing one’s home is a huge tragedy…should not be happening in America…as REALTORS we have fought over the years for right of homeownership…of course in every profession there is the good, the bad and the ugly, …

      So, for those who are judgemental and critical…give GOd thanks for still having a job and a home, as a Realtor, we dont get unemployment checks, or regular pay checks, so no sale no income…go figure…but I am grateful and thankful to the Lord for His promises…He provide food, shelter and clothing and does care for us if we let Him…and He lets the rain fall on the good and the bad…we still have so much to be thankful for…everyone has his story and everyone needs to know where his faith lies, mine is in God I do trust and He has remained faithful. By His grace and in His name I will allow NO ONE to take away my home and will continue to stand with those who are declaring the same…that is why all these frauds are being exposed…
      The so called HAMP and other programs are to help the banks, NOT THE HOMEOWNER, as you so rightly said….rob a man and he is angry, yes, but rob him of his home and shelter for his family and protection within its walls and you see what happens…it is far from being over…do loose hope…and be prepared sometimes to move on to a better life after foreclosure if it does happen…but we are warned that when we see God punish our enemies, and HE has already started to do so, then we must not laugh as He will then stop punishing him…have faith in GOd, ask Him to help your faith and trust Him, I know, I gurantee that He will rescue you. Done ever loose hope, ever, this is America and do not be as lamb to the slaughter as the Jews not so long agao…do we ever learn from history? How soon we forget. In 199, on his way out, BIll Clinton Republican Congress repealed the 1933 Bank Act that would have been protecting the borrowers today….imagine…opening the door for once again the predatory lenders that set up the crash that caused the Depression…
      Pray for the judges, that they are enlightened and see what is happening and that they will judge righteously and fairly…pray out the ones who wont and see what happens…..

  11. david black says:

    hello all

    that NPV is a bunch of bull. first of all in the trial, the payments are put in a suspense account to pay for the banks attorney fees. that is outright fraud. second it is bad faith because as soon as they enter the trial. they are put on track for being foreclosed on.

    NPV is a complex mathematical calculation that every book of business finance has the formulas. the FED guidelines for trial mods and NPV have no math in them at all.

    This is just another example of interstate fraud being espoused by supposedly government regulations.

    we all have to see the forest from the trees. the word has come down from on high.

    TAKE THEIR HO– USES . period sucker em in with a trial and then foreclose. take their payments for the attorneys fees and steal their equity.

    we should be calling our senators and congressman’s office and the OCC and the Treasury Dept raising hell and writing letters.

    I caught my lender red handed doing this and jack wright of did too.

    What I did to stop it was say to them

    PRODUCE All the TRUTH IN LENDING DOCUMENTS since yo u the bank say you are making a new loan and all the RESPA docs and HUD! documents and all the disclosures before I sign any agreement to proceed with a MOD. guess what THEY FOLDED.

    I Had them in a box. if they produced them they would have documented across state lines a massive fraud called a MOD if they didn’t produce they had to deny.

    that is why I filed a HUD mortgage discrimination complaint against CHASE/EMC

    on to p of that Bof A is bein gsued for the very same thing DENIAL OF HAMP

    as a civil rights case in federal court in tacoma, wa.

    this family was setup and they tricked them into signing that mod agreement when they had no intent to do the MOD> the bank wants the foreclosure fees and maintenance fees from the mortgage trust owner. that income represents 60 to 100 billion dollars of revenue to these insolvent national banks and servicers.

    it is fraud and illegal. not who is gonig to stop it.

    I stopped mine.
    anyone can put a stop to this bs.

    • S Mitchell says:

      Can you post copies of docs you used? Redacted of course. People need help as education has failed so many they don’t know how to approach the problems.


      • david black says:


        what I did was put the request for TILA and RESPA documents in my hardship letter that was submitted by a HUD certified not for profit mortgage counselor. so I had witnesses that could testify in the future. the lender/servicer wasnt stupid. they knew I was building a case when i asked for all the disclosures up front like the law says they have to give but no one is demanding them

        the lenders/servicers are calling a mod now as a new loan. well if it is a new loan then it has to have disclosure docs. so put your demand in your hardships letters. if yo u didnt do that then submit the demand after the fact.

        if they dont do it and deny you your app for HAMP that is a civil rights violation under the Fair Housing Act for mortgage discrimination in addition to the non disclosure as required by federal law.

        as in TILA, RESPA , REgulation Z. so there are no docs per se.

        when you deal with crooks the only thing in your favor is the law. that means you have to read it and research it in google and read the regulations. this takes time and effort. I dont mean to be preaching here it is just the truth !

        Fighting takes a lot of energy and these guys are totally bad news.

        good luck . write your letters t o your lender servicer . write your QWR’s demanding under penalty of federal law the RESPA act , to know who owns your trust owner.

        yo ucan go around HAMP and go directly to your owner of your mortgage trust and not even fool with your servicer lender . owner of the trust may be a totally different party than what you may think is the owner.

        keep fighting and good luck
        best regards
        David B.

    • housemanrob says:

      Great job Dave! Please try to articulate a little better, in the future for dummies like me!

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