This started several years ago, I was happily married and my wife and I bought our 1st home. A modest starter home, with payments our joint incomes could afford. It was an assumable mortgage, which ended up owned by Citi several years ago. I won't bore you with the details of my life, this is written in an attempt to save any other potential homebuyers who have a choice of mortgage companies. And do hopefully shed light on the deceptive practices that Citi Mortgage incorporates into its business model to generate extra fees and income from foreclosures, mainly on poor people who, unlike me, may not have the fortune of a steady job, and supportive family that I am blessed with. I'll just say simply that my wife left for greener pastures and a nicer home. I ended up with the house, a Citi mortgage and a mountain of debt that forced me into a Chapter 13 bankruptcy, of which 100% of mine and my wife's debts were paid by me over 5 years. but, if you'll read on, you'll see that this is not all related to the bankruptcy., which I know carries a certain stigma... however I mention it here to show how they got me, which is just one of many such stories, many of which have nothing to do with bankruptcy. Only one Mortgage payment (of around $600) was included in this plan, and, as with all secured debts it was paid off 1st, and I NEVER missed ONE single mortgage payment other than that.. About two years of regular payments went by, when I recieved a yearly Escrow analysis, claiming that I had an escrow overage of $2000. and that I had a new, lower monthly payment, which lowered my payment about $60 a month. I was quite uspet that they would not issue me a check of the overage, they claimed that because of the Chap 13, they wait till the end of the plan, and when my bankruptcy is discharged they re-audit the account, and if there is still an overage, they issue a check to me then.. I took it in stride, and felt blessed enough to have a lower payment (and an extra $60 a month) As for the new lower payment,.. When I recieved the statement that year in March, I was concerned because the new payment was not reflected, the statement still had the old payment, ($60 higher) and if I kept paying that, it would just keep adding to the money they were already keeping from me. So I called (If you've been in Bankruptcy-you'll know that they shut off your access to the website--now I know why-- read on) anyway, I called Citi mortgage, and spoke to a woman, who explained that during bankruptcy, the statement never changes, but I was allowed to make some photo copies of the document citing the correct payment, and mail it in. I even confirmed with my own lawyer that this was OK..., This seemed like a reasonable solution., I mean, they couldn't expect me to keep giving them an extra $60 every month on top of the 2K they were keeping right? Not a big company like Citi? She also mentioned the "audit" that is done at the end of a bankruptcy, and how what was actually due vs. what is paid would line up and any overages would be returned to me. Another year went by of regular payments, and faithfully mailing in a check with my new payment, and a copy of the new payment letter each month. Then in January, I recieved another escrow analysis, with AN EVEN lower payment!!, but on close inspection, it appeared that all the accounting was based on the old payment.... in other words, even though I was sending in $600, they were adding up the previous year like I was still sending in $660. I immediately called and explained their mistake. That they were showing credits on my account for $60 more each month than I was actually paying, and therfore the new escrow analysis was inaccurate. Again, I was told that this was due to bankruptcy, and not to worry, the "infamous" audit that would be done at the end would be a cure all. But they were not able to tell me a that point what my new payment should be, and I certainly was not going to send the new lower payment, based on an erroneus escrow analysis, because, I thought this would make me short for the audit. So I check that my escrow items had not changed much, and concluded that I would keep making the same $600 payment. I remembered early in the bankruptcy, I had to attend a class telling me how irresponsible I had been, and how to navigate through this bankruptcy so I don't need to do it again... One of the few things I remembered was being advised to call my mortgage company and make sure that all is current before discharge, because it is alot easier to deal with them while you have Chapter 13 protection. So, as my plan was ending in Hanuary of 2011, I started calling in October of 10. And that's when I first became clued in as to what they were doing. All of Citi Mortgage calls are to call centers in India., and I learned early on to keep asking for the bankruptcy department over and over, and they will transfer me there. then, the lady said something concerning, she was showing that I had missed a couple of payments from the pervious years. This was impossible I said, I have canceled checks and everything.
Again I said I HAVE NEVER MISSED A SINGLE MONTH PAYMENT IN YEARS.
It turns out that, despite everything I was told, their "computer" still recorded the payment due at $660.. and when I sent $60 less each month, (which was all that I owed)
they would hold the $600 in a "suspense" account. then record it a month late. When my next payment came in a month later, they would take $60 from that and put it towards the suspense account, and make a full payment (one month late) and then they would add late charges to it., And then after 3 months, they added regular "inspection" fees and other charges that no one can even understand. However, I was assured that at the end the audit would fix it all. Only slightly concerned at this point, I tried to take advantage of a little known law that requires any mortgage company to respond with accurate information (among other things) when you send in a "Qualified Written Request"... within 2 weeks. Within one week, they sent me back a short letter that said basically I need to send them proof of aggreements, and then they sent me a "pay history", which, even if you are the most literate accountant in the land, you could not understand at all.- It is intentionally unintelligible. But serves its purpose as a legal response (to some extent) Well, guess what? I came out of bankruptcy with a clean slate. 100% paid off everything I owed.. 2 weeks later I got a foreclosure notice from Citi Mortgage claiming I was almost $5000 in arrears. I had one month to pay, or lose my house. I was no longer allowed to talk to the bankruptcy department, and when I entered my account number, I went straight to the Call centers in India... (Yes even the collections dept who read off clever scripts, and basically said they can not change what is owed. I told my story several times, and after appropriate begging, they would switch me to the escrow department, who acted like I was crazy for mentioning this end of Chap 13 "audit". they didn't know what I was talking about. Finally one person (who I thought was my saviour) said that he personally would take care of the audit and told me to call back a few days later. When I did, he was not there, but another person said they went back one year, and are showing I am 2 months late instead of 3. Still several thousand dollars deliquent. The thousands in fees were not his department. I had to tell a short version of this to no less than 10 people as I kept trying to talk to a supervisor. I found out that, although their are people with those titles, they're powerless to make any corrections to anything that the computer has recorded. I am normally a calm and polite person, and I didn't want to be rude to any of the $10 a day Indian call center employees, (who were some of the nicest people) but it was wearing me down., and after 2 weeks (and two weeks closer to the foreclosure date) I was getting nowwhere.
Another person in the Escrow department said he had permission to go back another year. (This would do no good as the payment change was 3 years prior)
One lady even hung up on me., Many times on my way to the escrow department, I'd get the recording and have to enter my account info all over again Finally, I went to see a lawyer to save my home from being foreclosed on by a Citi-Computer.
And I will never forget it. He was referred as having experience in dealing with Citi Mortgage., And he told me: "No matter what they tell you, YOU HAVE TO PAY WHAT THEY SAY OR THEY WILL FORECLOSE ON YOU. EVEN IF YOU DON'T OWE IT."
they will not fix it, he told me horrible stories of others, which I dare not repeat without names for liable reasons. So.. I begged, borrowed and called Citi to surrender. to make a "forebearence" or loan modification to pay off these fees. (Which thanks to 2 years of "audits" were now down to around $4000.) (A side note: a day earlier, they sent me a new escrow analysis claiming I had $2500 in escrow overages... but as my account was over 3 months "behind" (remember I have never missed a payment) they would not let me use the escrow money to save my home. a classic Catch 22. I had to pay everything, and then they would give me my money they were holding. An interesting thing happened with one of the highly trained Indian call reps... As I was explaining that I was conceeding under protest and fear of losing my home, she had a look at the figures, and said all I actually owed was around $2500., and asked if I could pay 1/2... She then asked me if I had a little more, and claimed it would be easier and cheaper than an arrangment. somehow, (I taped the call-but it is a blur right now).. She was able to figure out that the exact amount I had in my bank including my last paycheck was the exact amount due. Around $2500. Again, nearly in tears, I said I do this under protest, and advice of my lawyer., I do not owe this money., but I know you will take my home from me., and I asked if I make this $2500 payment, could she give me assurance that No other random fees would be charged, and that I would be current and not foreclosed on? I was surprised when she said "Yes". (because it seems it will be useful if you are still reading... read on..) So, I paid. and borrowed money from friends to survive till next payday... I was very surprised when a few weeks later, I recieved another escrow analysis. and..... a check. My escrow overage of $2500. I thought I was on the road to living again.. Then, a week later, I got a call from Citi. Saying I still owe $900 in fees. Then, a few days later, I got a letter from a law group claiming to represent Citi. Claiming they have reviewed my account, and I am current through this month. Then, I got another letter from Citi, saying they have reviewed my account, and that the $900 in fees are in fact owed., and that they omitted them on accident. I just got my statement. And in addition to my regular payment. there are around $400 in various fees claimed that I owe. (perhaps for the law group that sent the letter saying I didn't owe?) I end here, because that is where it is now.... will update if I can... But although I make light and jokes, this has seriously worn me down these last months... I couldn't make this up if I tried. And if I didn't have God given freinds and family to help me with the 1000s of dollars, They would now own my house. I will never look at a foreclosure story the same way again. God Bless. |
