Ask The Get Out of Debt Experts

How Can I Get Citimortgage to Not Foreclose On My House? – Robert

“Dear Steve,

We bought our home in 1995 put $25K down and mortgaged $70K for 15 years @8,5%. The mortgage was not originated with Citi but is serviced by them and I believe the mortgage “investor” is Wells fargo.

Long story short; the last two years have been difficult but we’ve been managing to stay under 90 days on the mortgage payments including Taxes and Insurance. The current principle balance is $8,5XX.XX not including the most recent payment (July) we sent which has not been credited to the account as of yet. Citimortgage has been accepting payments 30-60 days for the last 24 or so months and yesterday I received a notice that they have forwarded our file to an attorney. FYI the maturity date of this note is July 2010.

It feels to me as if they are now playing hardball and they want to grab our house because we have big equity (home value $125K+). Previously I suggested to a citi rep that we eliminate the escrow account and subsequent $500.00 per month deposit to reduce our total monthly payment due from $1,127.xx to $642.xx so we could bring the note current quicker. Any ideas on how to fight this and or get Citi to forbear a forclosure action?

Robert”

Dear Robert,

I doubt they are trying to grab it for equity. What is more likely is they are dealing with the situation now since the balloon note is going to explode in July.

And that is where I think your biggest problem lies. With your delinquent payment record it is probably going to be difficult to find a new lender to refinance the loan in just eight months. You should contact some local mortgage brokers and discuss the situation.

Selling the house to avoid foreclosure and recapture some equity seems like a reasonable solution as well. And as a last resort you could look at a Chapter 13 bankruptcy but that is complicated by the maturity date coming so quickly.

READ  We Tried Dealing With MyDebtHelpline and National Debt Advisors to Save The House. - Jessica

Find a local bankruptcy attorney you like and go discuss your bankruptcy options with them.

I think you need to put all the options on the table and really consider selling the house before it is taken from you. Losing it an an auction would be a shame.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

morehelp1

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

10 Comments

  • how stupid you think its about a balloon never seen anything mentioned about a balloon payment read the letter before replying to it

  • how stupid you think its about a balloon never seen anything mentioned about a balloon payment read the letter before replying to it

  • Routing number…?
    I need to make a house payment but i want to make it through the phone but i need my routing number from the checks. If I were to call the customer service of the bank would they provide those numbers for me. (Oh by the way I have lost my check book somewhere here through the house, I cant find it)

  • Routing number…?
    I need to make a house payment but i want to make it through the phone but i need my routing number from the checks. If I were to call the customer service of the bank would they provide those numbers for me. (Oh by the way I have lost my check book somewhere here through the house, I cant find it)

  • It’s a shame citi mortgage won’t help you.. We are having the same problem with citi mortgage. My husband never missed a payment in 17 years until his oldest son became mentally ill this past July. He had to take off work to deal with his son, so he lost pay. We were put in a position pay mortgage or eat. With two other children in the house we could not go without food.. We have tried talking to citimortgage but they won’t help. They say someone will call us in 30 to 60 days, but nobody does. The only call we get from citimortgage is a recording that hangs up on us after it gives us our options. We were just served foreclosure papers yesterday on a Sunday while family was over, talk about being embarrassed!!! I want to know what happened to all this big money these mortgage companies were given to help people being effected by the economy?? Good people willing to pay, just needing some time to do so are being put out like trash and it’s not right.. Good luck with your situation and I hope you get to keep your home..

  • Those options I know about. My problem is that they aren’t willing to talk or forego the attorney invlovement now that they chose to start proceedings. I am confused as to why they decided now, after two years of accepting late payments, to send me to foreclosure with such a small balance and short maturity date. From my perspective it is a greed powerplay and not any form of homeowner assistance in tough times.

    Getting back to my original question; What can I do to stop the proceedings and “persuade” the bank to pull the file back in from the attorney? As in all legal cases there are allways ways to fight back. Short of contacting my Congressman, the White House and the press there must be some forms I can file to dispute the action?

    Seems like the press would be interested in a TARP recipient now forclosing on a family with a handicapped child for late payments on $8.5K while big banks like Citigroup are paying out billions in bonuses???

  • I don’t need to refinance it. I have the funds available to pay off the principle of $8,485.00 but they have sent it to an attorney who will now tack on $2,500 in fees just to answer the phone! I called citimortgage today and got hung up on so I called back.

    If I sell a few of my stocks in our portfolio (at a huge loss) we can pay off the loan. If the mortgage company would close the escrow we could catch up on the loan and keep it current through the maturity date. My original question was how to stop the forclosure proceedings not how to sell my house…

    • Robert,

      I missed it at first since I get very few people with so much equity. I thought you had a typo and owed $85,000, not $8,500.

      You can stop the foreclosure with a Chapter 13 bankruptcy or by paying off the note or bringing the loan current.

      Steve

  • Um, there is no balloon in July. July is the date of the last payment on the 15 year mortgage. Our current principle balance is les than $9K!!! I think you misread something…

    • Robert,

      Ahh, yes.

      Talk to a local mortgage broker and see if any mortgage company will refinance you and that will bring the house current, sell it, or if you credit score is above 660 then consider a loan through lendingclub.com

      Steve

Share a Comment / Leave a Reply

Scroll to Top
%d bloggers like this: