Citi Mortgage Loan Modification Class Action Lawsuit

NEW YORK & LOS ANGELES ( - Did you sign up for a loan modification with CitiMortgage and were placed into a trial program with reduced payments, only to be rejected from the program and imposed late fees and experienced other financial repercussions?

Milberg LLP has filed a class action against CitiMortgage, on behalf of mortgage borrowers who have been wrongfully charged late fees and had their credit-worthiness ruined after being rejected from the permanent loan modification program, despite complying with the trial period guidelines.

Consumers that were rejected from the permanent loan modification program through no fault of their own should find themselves in no worse position than they entered it. Instead, CitiMortgage failed to honor its agreements, and its misrepresentations about the program, enacted to help homeowners reduce their payments and keep their homes, have left customers financially devastated.

For more detail regarding the class action, you may view the complaint here.

Although we are prosecuting this case as a class action, no class has yet been certified, and there can be no guarantee that one will ever be certified, or that you will be a member. If a class is certified, we will post further details here. Please visit the Milberg website for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact either of the following attorneys:

Jeff S. Westerman
Sabrina S. Kim
One California Plaza
300 S. Grand Avenue, Suite 3900
Los Angeles, CA 90071
Telephone: (213) 617-1200
Facsimile: (213) 617-1975

Andrei Rado
Jessica Sleater
One Pennsylvania Plaza, 49th Floor
New York, NY 10119
Telephone: (212) 594-5300
Facsimile: (212) 868-1229

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Prior Results Do Not Guarantee A Similar Outcome.


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Moe Bedard
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My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications. I currently live in Carlsbad, California with my beautiful wife and children.
  • Dale

    If this Milberg law firm could put together this class action lawsuit soon, not only would it help the people affected but it would jump start the housing market in general. For those of you that have been working with Citi you know that they have no intention of helping you, even though they took tax money to do so !! Please get behind this class action suit, help yourself and help America !!

  • Moe Bedard


    It used to be 3-4 years, but Freddie Mac and Fannie Mae guideline effective from July 1st, 2010, homeowners who have gone through a short sale or a deed in lieu of foreclosure will be able to get a loan after 2 years. FHA is about the same and VA as well.

    I hope that help you and bet of luck!

  • Diane (riddlemethisbatman)

    I feel like such an idiot, Moe. Here on the forum, I thought Evan was your brother (knew you had a son named Evan but assumed he was named after his “Uncle Evan”). I mean, I saw all those pics of little Evan…LOL. That is the crux of my shortcomings—-missing the obvious.

    I am grateful for all your time and energy spent to establish and run this forum—thank you, Moe. I hope you’re blessed with the realization that what you have done has made a positive difference to so many people. God bless you.

  • Moe Bedard

    Hey Diane!

    Oh, please don’t feel like an idiot. We are often mistaken as brothers. I had Evan when I was a young 18 years old.

    Thanks you so much for the kind words and blessings. It means more to me than you can ever imagine!

  • http://none Sarah W. Rice

    I also have had problems with trying to obtain a Modification from CitiMortgage, but not the same problems as noted above. I have a small lawsuit, now ending, for being served a foreclosure six weeks too early, by a servicing company for CitiMortgage. The only thing gained by this suit was not paying the mortgage payment for the last year while I have been unemployed and have been able to stay in my home a little longer. I am working now, but only part-time and I am not sure I will be able to get a Modification. Anyway, I am looking out for a class action suit to join if one is formed R/T not getting a Modification when I was on Unemployment and bringing in enough to still pay a modified loan payment. They told me at that time that my Unemployment counted as income and then later recinded that. Please let me know if you come across something that could be useful. Thanks


    I was given a 6 month Modification,and was told that if I make every payment I could get a lower interest rate and same low payments. In my 5th month, I received a notice that my payments would go back to the original amount. Citi Mgt had went back on there agreement of giving me a lower interest rate and same low payments even though I paid on time for all 6 months while under the Modification.

  • Blake Miller

    Curious if this issue is still alive? We have a 2nd with CitiMortgage with 100% good standing. But, on June 30, 2011 we received an unsolicited modification agreement stating that we are “already approved” to take our 15Yr ARM – Balloon @ 8.875 and modify it to a 30Yr Fixed @ 5.625% . . . representing a huge savings. No Trial period, No docs or closing fees required, only a few signatures. Sounds too good to be true. However, the fine print says that our loan will be subsequently reported as a “modified payment agreement” which is getting alot of bad press out there – including this article/lawsuit. I am reluctant to do anything if it’s going to harm my credit reporting in ANY way, regardless of how good the offer is. But I’m curious if this latest round of solicitations is different from HAMP/similar? Would love any further insight. Thank you.

  • Phil Roth

    I made all my trial payments on time and still received a forclousure letter after the period was over. I had to borrow from my 401k account to make up for the lowered payments, penalties, and late fees along with paying thousands for citibanks legal fees to bring my mortgage current. My total mortgage payment reductions were under $1000 for the 6 months and I had to pay them close to $7000 to get my mortgage current.

    They did this because I had 50% equity and they could easily sell my house and get their money back

  • Curetarrah Witcher

    The very situation that you’ve stated above in your article is mine verbatim, and unfortunately mine gets worst. I would love to discuss this matter with your firm. I will contact you soon. I received a temp mod, made all payments before due date, received documented promises of permanency w/ modification and it all was the furthest from the truth. PLEASE tell me there is a class action suit I can join.


  • LJ

    I just wanted to let people know, this class action is definitely moving forward. I happen to be a lead plaintiff on one of them. It is my understanding that as of last week, multiple class actions around the country were “consolidated” and that the California Central District court (where my original case has been) is going to hear all of the actions at once. If you haven’t already done so, visit the Miberg website posted above and submit. From the dockets, etc that I have read, Citi’s motion for dismissal, etc. was denied and it is definitely moving forward. Hope that this helps people!!!

  • TR

    Thanks for this information, my entire Loan Modification Process has been an entire nightmare for the last 2.5 to 3 years. I really hope this class action suit proceeds. Citimortgage states that they want to keep homeowners in their homes, but I can’t see that as being true. I can still afford to pay for my mortgage and still have been foreclosed on due to the flawed Loan Modification Process.

  • Tracey Koechlein

    I too have a story much like the others posted but have been fighting with Citi for over 3 years and have been taken advantage of my them as well as by a lawyer I hired to help me in the fight. I am currently fighting eviction as I post this. PLEASE let me know what I can do and if there are any suits I can join that include Georgia or will include me.

  • PJoh

    Michigan has been hard hit with foreclosers. I so surprised, or maybe I shouldn’t be, that no lawyers have stepped up to file on behalf of the homeowners here! ABN AMBRO was a very good bank. But when they went under, all their loans were sold to CitiMortgage and Countrywide. It sickens me to even see or hear the name CitiMortgage. My sister was working through a temp company that sent here to work for CitiBank. She was immediately put in charge of handling all payments, why? Because the employees were telling the home owners to put their names on the memo line on the check, and they were cashing the checks for themselves instead of paying peoples mortagage. She received acall from a women in Texas, who was yelling and cursing her out because she had made every payment on time on here mortgage, but the sheriff was at her door to evict her. So I knew what kind of bank Citi was. I’ve had too many bad bad experiences with them to write about. What I want to know is what can we in Michigan do to get a class actin suit started, or join one in another states that has one?

  • Southerngirl

    I am a soldier with 21 years of active duty and I was on active duty at the time I bought my house in 1997. During the market crash, I was reassigned to LA and was in the process of completing a loan modification with Citi-Mortage. I was also protected under the Soldier Sailors Act however departments within CitiMortage were not communicating one to another. My house was foreclosed and my VA loan was forfeited. Upon realizing that a mistake was made, CitiMortgage is now trying to give me the deed back to the house, but I will not take it. They threw all of my belongings out of the house in which some were irreplaceable. Every month I receive a statement and it reflects a balance owed of $24,000 and I did my research, the house only sold for $26,000. I called them and asked why they were sending me statements and the house has been foreclosed. I also told them that I didn’t want the house back because they put me out on the streets and humiliated me. The Rep told me to disrecard the statements and they would put in the notes that I didn’t want the house. My response: when can a person just tell a mortgage company they don’t want the house and its jusk ok and requires not other action. I know I have a good case but just don’t know how to proceed; I have not sign any documents that will make me owner of the house and nor have I took any legal actions. Any suggestions. Thanks

  • Gonzalo

    I began to fall behind on my mortgage loan in late 2011. In late 01/02 and early 02/12, I spoke with Citi reps and told them that I would soon be catching up. On Feb 14, I scheduled a payment for Feb 17. It was accepted and the money taken from my bank account on 21 Feb, but I was not credited with the payment.

    On 18 Feb, I went to the CitiMortgage website and tried to schedule another payment, but was denied access. I am ready to pay, but they will not work with me. I am not allowed to make a payment, and they will not discuss the issue with me.

  • ericmeng

    hope i can help alittle , i to am in the same boat, i was but in a 30 year fix by citi, then switch to the hamp program, after 11 mounth and trashing my credit which was in the top 10 persent of the country, citi said i didnt qualify , and then they are trying to forclose on me , i found a lawyer and have been in court since nov 2 2011, my lawyer says im going to br all right , but that as not stop the depression! i have never been late, missed a payment ,or unresponsabble with any of my bills , my crime as citi sees it is that im poor! my advice is to seek out a lawyer in your area, citi will have to pick up the bill , and dont tell anyone how much money you make!

  • Belinda

    My life has been hell since I made the fatal mistake of contacting Citimortgage asking for a loan modification. They took six months to process the paperwork. They even canceled it after 3 months because they didn’t ask for all the paperwork required. They reopened it and finished it in another 3 months. They failed to tell me what the new payments would be. When I was told by phone what the new payment would be, I immediately said to cancel it. That was on the 10th day of September. They said they would. However, they didn’t close out until October. In the meantime, they set up an escrow account for two years of property taxes and the remainder of my insurance which I’ve been paying on my own. They even paid the insurance without my permission at the end of September. I called and they said they would take off the escrow for the property taxes but would keep the insurance amount in an escrow account and that I could pay it off at $73 per month. They said they would send me this information in an email and that the escrow would be gone by October 9th. No email came. After reviewing my account on October 11, they had not removed the large escrow amount. I called and they claimed they had no record of my previous conversation. Then I got this ridiculous new mortgage amount which about doubles my original monthly mortgage amount. Another letter was sent saying the loan modification was not approved because I canceled it and that my mortgage terms would remain unchanged. They sent another letter three days later with not only this new escrow amount added but now they claim my loan to value on my home is not at an acceptable percentage and they want an additional $4,100 and that I am delinquent on my mortgage payments. They want me to pay the new mortgage with escrow amount plus repay them $4,100 and keep my payments on time for at least 13 months before they will even consider removing the escrow. What is wrong with these people? I can’t pay double my original mortgage amount. That’s why I asked for the loan modification in the first place. I need to know where I can get some help. They are bullies ruining the livelihood of people.

  • Henry O Jones and Genell S Jones

    Citimortage promise me and my wife a loan modification which put us behind on our loan
    then when we caught up the loan they sold the loan to rushmore and they did the same with the loan modification and we got behind again,caught up the loan now they are selling our loan to credit suisse frist boston mortgage.

  • Dan

    They screwed me on my modification ! 40 year mortgage gave me 3 days to sign the papers and they sent them on a Thursday knowing I was working out of town . I feel like I am just renting from them when my son graduates they can have the house !! CITI can go screw them selves they took the money from the government and didn’t help a sole !! But they got their raises and a big bonus ! NOT FAIR NOT FAIR hope THEY BURN IN HELL !!!!!