A Fraudclosure Story | CitiMortgage Foreclosure, Loan Mods and Lies

This was sent in by a reader of the site. It pretty much covers what millions of people are going through across America. Please take the time to read it. It will help you understand how criminal these entities are…



Searching the web and ran across your website. I know you’ve probably seen and read many examples of people getting worked over by the lenders, but take a look at mine if you have time and tell me what you think.

Will probably be sending this information in with my Foreclosure Review paperwork and it will also go to all of my representatives at the federal and state level. If nothing happens I may even send it to media outlets. We’ll see….

Just filling out our Independent Foreclosure Review papers and we are beginning to wonder if a lawsuit is a possibility after a whole bunch of wrong doing by CitiMortgage during the last two years.

We saved our home by repaying $19,000.00 after 2 years of hassle, 3 modifications, and then we were finally told that we either had to repay or the home would be taken from us. We were put into this situation after simply calling to get a better interest rate. Check this out…


3 MONTH TRIAL PAYMENT (October 2009)

— Called Citi to see about lowering our interest rate because as a self employed borrower our rate has always been high. We were NOT behind on payments. The representative told us that “Yes, we’ll set you up on a modification. We can get this done pretty easy.”

He told us to get started he would have to put us on a 3-month trial payment (come to find out later that this was a huge mistake on his part and ours). Our payment was just over $1,000 a month, he knocked it down to about $830. The way he made it sound was that if we did this, we would have everything taken care of in three months and our payment would be at about this lower rate.

We sent all of our financials immediately and made our payment on time the entire time. We were also in contact with them the entire time.

After probably the first month we began to be notified or told when we called them that our paperwork was lost and that we would have to resubmit our documents. This happened numerous times during this modification attempt.

In the end it took 6 MONTHS to get the modification answer. To our surprise when we received the modification we found that our monthly payment would actually go up!!!! I immediately called them and told them that we would be crazy to accept the agreement. The representative that day which was one of probably 100 that a spoke with over the two years, said that it wasn’t a problem and that there were other options. So, she began another modification after we returned the paperwork for the first modification “denied”….

The same thing happened the second time as the first but we would be surprised once again. The lost paperwork and resubmitting documents continued the entire time.

We called Citi, over and over, trying to find out what was going on and why things weren’t happening.

All the while we continued to pay the reduced payment of just over $830..

Then the totally unexpected happened…



We received foreclosure papers by mail which totally caught us by surprise and was totally unexpected. We were still under the assumption that we were working with Citi and that things would be taken care of. I instantly called Citi asking what was going on and why our house was suddenly put in foreclosure even with us working diligently to get the matter straightened out. Keep in mind, we were not behind on our payments and we were able to pay our regular payments but they put us on the reduced payment.

When I called, the representative finally told us that we shouldn’t have been paying the reduced rate after the 3-month trial. The problem was that we had called them after and during the three month period and they told us to continue paying and we have a document stating such. They never told us to do otherwise and they continued to receive our payments. At some point you would think that they at least would have called us to point this out. But they didn’t. In the end, they told us that because we weren’t making our regular payments our mortgage fell far enough behind to put us in foreclosure.

So now not only did we have the stress of trying to get the mortgage straightened out but now we were actually faced with the possibility of completely losing our house that we have raised our two daughters in. Most stressful situation we have ever faced and it was caused by a single phone call to an incompetent mortgage company. We just wanted to get our interest rate lowered!!!!



So now that the foreclosure preceding had begun we were then wondering when our sale would be, if there was a sale date, and what was going to happen next.

Citi representatives told us that because we were in the middle of the modification process that the foreclosure would be put on hold.

The problem was that we were served papers, our name was put in the local paper, and a sale date was set, and of course the County Sheriff came to the door to serve the papers and put the sticker on our door unexpectedly. Actually we weren’t served the papers by hand but had to go to the Sheriff’s office to pick up the paperwork. They did put the sticker on the door though. None the less, a horrible experience.

Then, of course, we were surprised once again. After telling us that the foreclosure was on hold we received another letter from Citi saying that the agreement we made was not good or hadn’t been followed and that the foreclosure would continue.

We called Citi again and the rep had to “check into” whether the foreclosure was put on hold or not. They called back and said the foreclosure was put on hold. I told them that I didn’t trust them because of all of the mistakes and false information they had already given me and that I wanted to call the actual lawyer in Cincinnati that was handling the foreclosure for Citi. They had to research who in Cincinnati I had to speak with and call me again to give us the number.

After calling the lawyer, they finally assured me that the foreclosure was temporarily on hold. Was good that it was put on hold but the fact still remained that our house was in foreclosure.



CitiMortgage sent people to our house on occasion to hand deliver yellow envelopes that they hung from our door with a simple note on the inside stating that we needed to call them about our mortgage. This happened numerous times and it wasn’t a professional thing to be doing. The people that showed up at our door were not professional looking people and the thought that these strangers were just roaming around the kids in our neighborhood wasn’t a good thing. The amazing part was what the letter stated…. “Please contact CitiMorgage”…. We were contacting Citi probably 3 times a week… How ironic. You would have thought that at some point Citi would’ve contacted me with some answers about what was really going on… That NEVER happened, still hasn’t, and never will.


WAITING ON 2010 TAXES (January 2011)

After we were denied the first modification we were told that they were going to try a tradition modification. We sent in all of our paperwork for the third time including all our financials, pay stubs, etc… etc… Months went by and nothing was being done.

So then around the first of the year (January 2011) a Citi representative tells us that she doesn’t know why they were trying a traditional modification because we wouldn’t qualify for that, blowing up everything we had done entirely. Yes, it was AMAZING!!! More wasted time, money, interest, lawyer fees, etc… etc… Someone by now is making money off of our single phone call that we made at the very beginning to get our interest rate lowered…. The nightmare continues…

Now the representative tells us that to get going on the new modification that we would have to get our 2010 tax returns done. So we continue to waste more time. We had already sent all of documents in two times in the last year and some of them more than that because they “lost” them.



In January 2011, a Citi rep tells us that we could make a new agreement while we work out the newest modification. We were told to pay $1,000.00 per month (Feb-May) while they worked on the modification. So we did, on-time, every time. Once again we did exactly what they told us to do to get things squared away so that we could move forward. Again, according to them, we were on the right track to get things done.

By this time, we were beyond trying to get a lower interest rate which is what we called for in the first place. We were now fighting to stay in our house!!!



While this all was going on we contemplated every scenario. Should we just let the house go? Should we start looking for a place to rent? What is happening with our credit? How would our children react to having to move out of the house they’ve been in their entire lives? As stressful as stressful gets…

After paying the four $1,000.00 payments we finally were called by a Citi representative that finally had answers but they weren’t the answers we had expected or thought we would ever have to accept.

This representative “spilled the beans” after I told her my entire story…

After learning that we were not behind on our house payments at the very beginning she told us the reason they put us on the Trial Payment Plan was to put us behind because we had to be behind on our payments to even qualify for a modification. This was astonishing to us… If they would have told us this IMPORTANT fact there is no possibility that we would have agreed to this. Period. She even agreed that it was wrong and agreed that the entire thing was wrong but she couldn’t do anything about it.

The fact that Citi would put someone behind on their payments for any reason should be against the law! If we weren’t behind on our payments, we weren’t qualified to sign-up for the the modification and that is what they should have told us! Citi didn’t tell a lie by doing this to us, but they absolutely weren’t telling the truth!

So here is where the hammer falls. She tells us that the last modification attempt was not accepted and that the only option we had now was to pay the $19,000 that it would take to bring the house out of foreclosure. Amazingly we had just went a year and a half, lots of phone calls, hundreds of sheets of paper, faxes, more phone calls, stressful days, sleepless nights, and absolutely nothing had happened. Nothing. We made one call one evening hoping to get a better interest rate and it turned into a financial nightmare.

Another thing that was amazing was that during these phone calls we were speaking with people representing a giant in the banking industry, Citi, and the lack of knowledge coming from the people on the other end of the line was out of control. They had absolutely no authority and were doing nothing but answering calls giving answers, however right or wrong, and going on to the next phone call in line. And this is their “customer service” department. I could call them, speak with someone, get an answer and then call back five minutes later, speak with another rep and get a totally different answer…. I wouldn’t want to know what is actually discussed behind closed doors at this company.



This is it. Should we try to pay the outrageous amount of money (for us) to save the house we have lived in since 1997? Our first and only house, where we have happily raised two daughters who are closing in on their teenage years. Or should we get out of it by just picking up and walking away… Well, we decided to try to make it.

It would not be easy and we knew it but it is a decision that would affect us financially because it would take everything we have to make it happen.

We were put on a repayment plan that forced us to pay the $19,000 back in monthly payments in five months. Almost the entire payment was interest, late fees, and lawyer fees, meaning in the two years we went through this we didn’t make a dent in our actual mortgage. Keep in mind we still paid the reduced 830 payment on time as well before we started the $1,000 payments back in February.



We ended up making a down payment on the repayment plan of about $6,000.00 and then made monthly payments of $3100.00. With my income being seasonal as a self employed individual, I knew I would be able to make it through the summer and make the payments I needed to make but that wouldn’t be it for me, unlike Citi who will just see that I made the payments, mark us off as paid, and go on like nothing happened. We don’t have that luxury… Citi took all of the money that I made during the summer and now my seasonal work (snow removal) will have to carry me through the winter (it doesn’t always snow). The $19,000 we paid to Citi would have bought some new equipment which would have given me the confidence to go forward with expanding our business. But with ruined credit and the loss of on-hand cash, that idea was terminated.

We are definitely worse off at this moment than when we made that fateful phone call about our interest rate over two years ago!

First of all, our credit is ruined, my business has been held back because of the mortgage situation, and our financial well being and stability has been jeopardized by Citi.



After all is said and done, I know that it wasn’t my fault entirely and that Citi should have to take some responsibility. The only mistake I have made through this is trusting a company to treat people right and in the end I know that we were not. We simply called to see about getting our interest rate lowered and in the end we were taken down a path that led to nowhere and in the end we paid for all of the mistakes of 100’s of people employed and/or paid by CitiMortgage.

I sit here typing this letter in the very home that we saved from becoming one of the 1,000’s of homes that sit empty but the future is still a little fuzzy because I don’t necessarily know where we are going from here.

CitiMortgage, lawyers, phone reps, investors, and all kinds of other people are getting paid with some of that $19,000 that we worked hard for and they did absolutely nothing except mess with a families future.



64 Responses to “A Fraudclosure Story | CitiMortgage Foreclosure, Loan Mods and Lies”
  1. Julie cooper says:

    Same happened to me…lost papers multiple times…incompetent Citimortgage people and liars…I ended up getting divorced…I was disabled and should have easily qualified for a modification…then I hired a mod lawyer who said my payment would be $800 per month…then it ended up being $1300 per month…I could not afford that after becoming disabled and divorced…so my children and I lost our home. Citi lied to us the whole way…my lawyer lied to me…I lost everything!

  2. Wes Bucher says:

    Am contemplating my next move with respect to Citi. In my case, Citi now claims they have as collateral 80 acres when in fact they had 5 acres as collateral on their mortgage. The loan modification journey has been a disaster. Citi could NOT keep track of financial information sent, and then when they did receive it claimed that no matter what information was sent, the collateral wasn’t acceptable under any circumstance.

    Citi knew that the purpose of the initial loan request was to have 5 acres as collateral – the initial inquiry, the application, the appraisal, and at loan closing. At loan closing they took exception to a 5 acre legal description at which time I chose to not close the loan. After discussion with the mortgage broker – a local bank – Citi agreed to accept the 5 acre legal description. Fast forward 10+ years, and now they assert they have an 80 acre legal description. The value of the 80 acres is too high to qualify for loan modification – makes more sense for Citi to foreclose – they will make $$$$. The value of 5 acres is such that a loan modification would be warranted – but they won’t even consider that they really only have 5 acres as collateral – which is the legal description on their Deed of Trust – that they ultimately accepted at loan closing – after lengthy discussion. I was willing to walk away from the loan closing !!!!, if they demanded an 80 acre legal description – Citi “chose” to accept the 5 acre legal description at loan closing.

    The loan modification process has been a total joke !!! Been involved in the process for well over 2 years. I’ve probably had 25 different “account representatives” most of whom understand that it wouldn’t be “right” for a lender to foreclose on 80 acres when the lender only has 5 acres as collateral. To their credit, they seem like reasonable people, but …… they have no decision-making authority. Furthermore, it is IMPOSSIBLE to talk to anyone with decision making authority – not an underwriter, not their legal department. Nobody – not even their own account representatives have access to converse with decision-makers. The organizational structure is flawed to say the least.

    The difference between misrepresentation, negligence, and fraud involves “intent”. I think I can prove intent, but it will risk everything I own to take that risk. I’m willing !!!!

  3. Consola Johnson says:

    I wanted to make repairs to my dream home, using the equity in my home but was told that process would take longer so lets go with the loan process with no interest charges because we will get the money from the equity in your home. At that time my mortgage was very low. Once the loan went through I received my mortgage statement the following month & it had went up to a thousand dollars & I didnt understand what had happened, so when I called they told me not to worry because the equity would come through & once it does I would be fine they said to continue paying the thousand a month which I did for more than a year. Instinctively I called again & they told me to stop paying the mortgage that they would send me another package involving my equity so I stopped paying waitng for the new agreement to come in & it never did. So I called & thats when they told me that I was behind in my mortgage & that I couldn’t use the equity in my home & that’s when the problems began I started corresponding with them through letters stating what had happened & that I was at a lost as too what happened & why when I followed through on everything that I was told before I knew it my disabled daughter & her disabled daughter & I were homeless with no place too go. This was the first time I had attempted to acquire any equity out of my dream home or any other monetary means & I had been in my home since 1997 without a loan or anything because I was afraid of dealing with the big business aspect of it all & this is what happened to me & my dream home.

  4. Citimortgage Hell says:

    I am in citimortgage hell. We applied for a HARP last year after my husband went into kidney failure and we had to be off work for awhile. They did a re-fi but worse interest rate and on a 40 year term. We were told NOT to make payments during the re-fi and they ruined our credit. Since then, they have lost TWO sets of notarized documents we sent to them first last November and the second in February. They sent us more docs to sign and notarize yet AGAIN this week. I video taped signing them, having them notarized at the bank, counting the pages, and handing the UPS envelope to the UPS employee. We are in a bad place. They ruined our credit so we can’t get another bank to help us.

  5. anonymous says:


    Effort marks bank’s move to shed potential liability over servicing practices

    Fannie Mae has purchased mortgage servicing rights on about 64,000 of its own loans from Citigroup looks to shed future liabilities tied to its servicing practices.

    The unusual transaction had reached a definitive agreement with Fannie to sell servicing rights tied to approximately $10.3 billion of unpaid principal balances on mortgages owned by Fannie.

    “The sale includes the majority of the delinquent loans serviced by CitiMortgage for Fannie Mae, Nearly all of the loans transfered are delinquent.

    The agreement means that Citi and Fannie Mae have “substantially resolved pending and future compensatory fee claims related to Citi’s servicing practices on these loans,”

    Compensatory fees typically refer additional fees a GSE may choose to levy on a lender/servicer should certain set standards not be met.

    Compensatory fees can be assessed for delayed remittance of claim proceeds, delays in the liquidation process, late filing of a final request for reimbursement, and other timeline-related matters.


    Citigroup agreed to sell servicing rights for about 64,000 Fannie Mae residential first-mortgage loans as it seeks to reduce a portfolio of unwanted assets.

    Citigroup had reduced assets in the Citi Holdings portfolio to $122 billion at the end of September. The bank was selling servicing rights on $63 billion in loans in October

    Citigroup paid Fannie Mae to limit its liability related to the servicing


  6. connie sneed says:

    We just found out last wedsday that we lost our home by some contractor trying to change our locks ..we are on a motification program I cryed..our house was sold without a letter or anything from citibank ..last thing charita ashley citibank loan specialist said to us was it was good and wait for payment instrutions. ..no call no letter we were not behind in payments in fact a month ahead..tryed to get out of this program the first month but was told we couldn’t..so here we are waiting for the sheriffs to kick us out..

  7. msmeme says:

    Citibank, N.A. totally sucks do not use them they are always switching me from one loan officer to the other. They just totally are screwing me around, the 90 day HOLD and get my refi done is about out for me to get the refi % we agreed on. AND the appraisal they told me get (they ordered) and told me I was pre qualified was good to go so to get the appraisal and than if that came back good than there was not a problem. HA they have asked me to send over and over stuff they loose etc. I think they are a scam!

  8. craig says:

    I been with citi over 7 yrs lost job do to 5 heart attacks and now on a heart transplant list fraction rate below 28% tried modification under first under pnc bank no problem went for second mtg keep getting a run around then got a provel on March 15 2013 and on March 20 I get a denial so here iam down nine months now going to federal got help and attorney because of cities scruples tactics so for help they suck

  9. ripped off by citimortgage says:

    have already lost our home after a arm rate . ballooned to 9% and $2300 per month from $1000 per month, they finally got the house , i think citi needs to be sued just like all the other ones, they will get theres in the end

  10. Trudy says:

    I just found this site and read many of the posts. Has anyone had any experience with the latest scam being pulled. Chase is our scammer of course through their attorneys. My son thought he was successful in getting a permanent modification. All payments were made through the trial and thereafter for almost a year total….then he got laid off from the low paying job he had gotten after originally being laid off from the high paying job. He got behind two payments but then found another job and called to let them know. Hadn’t heard anything from them until he called, just the normal statements. AFTER he called to tell them he would be able to make his payment on time and to arrange to catch up the other two he got served with a notice that he had 10 days to pay the entire amount or they would accelerate the note. He called and they would not work with him on catching up the other 2 payments. He hadn’t even gotten his first check yet which would have been enough to pay the coming month’s payment and even though he would have been able to catch up they told him not to send the payment unless he could send two as they were accelerating the loan. He then got the acceleration notice which demanded full payment or else they would foreclose on the house. That was last April. The notice of course says don’t send payments as they will be sent back, etc.

    So after contacting attorneys and legal aid, etc. he decided there was nothing much he could do. I (his mom) am disabled and had been living with him and paying the utilities and buying food. Had I known what was going on I might have been able to make the payments from my meager savings for a couple of months but he didn’t tell me. I happened to be in the living room when the guy came to the door with the foreclosure notice.

    In December, a couple of days before Christmas he got a certified letter saying they had decided not to accelerate the loan after all. Fools, we thought it was a good thing and we could start making payments again. This was followed the next week with a new demand from the attorneys for over $11K. This is (according to them) the amount he was now behind on the mortgage payments. Of course even 12 months of missed payments doesn’t come close to that….according to the modification loan he thought he had. It would be about what 12 of the original payments were. Or else they have added about $5K in miscellaneous charges. No way to tell since that letter had no kind of breakdown whatsoever. It was a typical 30 days to dispute the validity of the debt type of notice a bill collector sends.

    Two days later he got another letter, this one certified, saying since he hadn’t paid the $11K they were accelerating the loan and are foreclosing in February. It doesn’t give any figures on the acceleration or payoff at all.

    So, they refused to let him catch up the two payments, refused to accept any payments in the meantime and now he is so far behind he can’t catch it up in any kind of short order. He had asked for a forebearance agreement on the two payments in the first place and couldn’t get anything from them. He went to their meetings twice and called the first couple of times he got the UPS letters but that was all just buik form stuff because each time they said there was nothing they could do since the note had been accelerated. After a few times he quit trying. He’s going to try calling again tomorrow but I think this was another shady trick.

    I didn’t read anything about this newest slick trick so I wanted to share it in case anyone got one of these we aren’t going to accelerate letters.

    • lvent says:

      Trudy.I am not an attorney but i know what chase did to my sister…forebearance payments landed her in foreclosure…maybe he should send chase the where’s the note letter requesting that chase prove they own his loan….you can google that….this is a great site for info and there are more listed in the right column….like living lies and mortgage servicing fraud. Sounds like your son is caught in their spider web of lies…tell him to get all of the info that he can and that CNBC reported yesterday that there are 40 million people that are 60 days behind on their mortgage…I don’t know if those people are strategic defaulting or victims of the economy but your son is not alone….and most likely chase is servicing his loan and the have no legal right to take his home….an attorney told me last year that I should not sign or agree to anything….the banksters debt is unsustainable….your son is going to be told a lot of lies so he should get all of the info that he can…..good luck to him…there is always someone here who will offer him advice….tell him to do his homework before he sees an attorney…what he does not know can hurt him…!

  11. Linda says:

    This is truly sad and I feel your pain. I am so grateful that the Judge in my pro se case ended this matter. Because the Plaintiff in my case never proved they had both the mortgage note and the loan, they dissolved the loan and charged off the loan. I know first hand your pain. I hope everyone with the MERS notation on their mortgage will defend their home and get the same dismissal of their loan. God bless you all.

    • Financial Crime victim says:

      Hi Linda,
      Charged off???? Can you please clarify for me exactly what you mean by charged off?
      Are you aware creditors who charge off loans usually reports it to Equifax, Trans-union etc.
      This adversely effects an individuals credit Is this charge off on your credit report?
      The creditor you were dealing with was up to its eye balls in FRAUD and then submits a derogatory against you knowing the info is erroneous?

      • lvent says:

        Financial crime victim….this could have been extinguished in a bankruptcy….some judges are honest.

      • lvent says:

        Or maybe the plaintiff withdrew their case or they settled out of court…..their biggest fear are pro se defendants asking for discovery from what I have read lately!

  12. Carlos Dehesa says:

    Every story from every one recall us a date which will live in infamy.

  13. lvent says:

    I was just watching the ticker on FOX business and they are listing bank of America as NEW BANK OF AMERICA CORP????? Makes me think they are up to something shady….

  14. Pamela Edwards says:

    This sounds like our story only with GMAC and US Bank.It’s surreal because everybody has the same story just with different lenders and so forth.Will keep these people in my prayers that everything works out.Dang ya’all shouldn’t something be being done at a much quicker pace?

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