Loan Modifications, foreclosures a quit claim and divorce

[kerry]

I found this forum while researching federal law and where to make a complaint against citi motgage. Here is my problem: I was seperated in early 2009 and divorcedin 2010. In June 2009 the home was in foreclosure and my ex would only save the home from foreclosure ifi signed a quit claim deed. I did this and a loan modification was signed. I was notofied by the title company in November that the home was going to auction. Prior to this notification I had received NO notification from citi regarding default etc. After numerous calls and conversations with citi mortgage I was informed that they didi not need to notify me nor do they need my signature on a loan modification. I filed an FTC complaint against citi mortgage and 4 loan officers due to the fact that they were using the quit claim as a reason not to notify me of changes to the original loan but would not remove my name from the loan using the same rules. 3 weeks ago I was again notified that the home was again going to auction by the title company. Another round of telephone calls to citi mortgage and the never ending "we will schedule a call back answer" I was again informed that they do not need my signature for a loan modification. Any modifications to the original loan do indeed need both parties signature as the terms of the loan will be changing and they are reporting negative on both parties credit. Maureen Rodriguez was the loan officer and kindly reminded me that I signed the original loan in 2004 and the quit claim in 2009. I reminded her that a quit claim only relieves me of equity not liability which she conceded was correct but the "legal department" she conferred with stated that citi did not need my consent to process a loan modification. The home has been in foreclosure a minimum of 4 times and is currently $27,000 in arrears as no payment has been made since January of 2011. The divorce decree gave my ex the house and all debt. I do not want a modification as this will not remove my name from the loan and a refinance at this point is unlikely if not impossible. We went to court this month and the judge ordered a refinance or the home be put up for sale. This is a mess and I am in the process of filing complaints with all governing agencies concerning citi mortgage regarding the handling of this case. I need some help! I just want to be free of this home and rebuildmy life.

[Jeffrey L. Shurtliff]

If you signed a quit claim on the house because of divorce and that agreement is in the divorce decree then your exspouse is liable for the loan on the home and the home itself. Therefore they do not need your signature for a loan modification. If this type of agreement or language is in the agreement or decree then you are free of the home and you do not need to worry about it.
You say you went to court and the judge said refinance or sell, was this an order for you or your ex spouse?
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[kerry]

The decree stated he was to take my name off the house in 90 days dated last November. The order to show cause hearing was this month and he was ordered to either refi or sell in 30 days. I just want to be free and clear of the house as they are continuing to report on my credit.

[Tarin Myhairout]

Hi Kerry:



I just caught your posting as I was leaving, but there is something in the Hamp Rules about this, I just can't remember what it says! I won't be able to look it up tonite, but will try to get to tomorrow afternoon...

{It seems to me that this was causing a problem, because there are limits to how many HAMP loans (1?) people can get, and this could count as yours even if you don't benefit from it. }

In what state is the house of horrors located?


This is not a new problem for people who divorce, one gets ordered to pay a joint debt, and then fails or refuses to do so. Your recourse is exactly what you did, go back to the person who failed to follow through on the agreement and order, and make them comply. Citi thinks it is sitting there fat and happy, but I hope your FTC complaints give them a HUGE headache over this. They have a fine system of being able to continually ruin your credit without giving you an out.

Freedomwon has a great list of Complaint Departments and contact info for each on one of her posts.

I know you are at the end of your rope with this, but it seems self-limiting at this point. Either the loan get refi- without you being on the hook, or else it gets auctioned/sold - either will have the same effect for you, correct?

Hang in there, and please do let us know how things go.


Tarin

[Cat Damiano]

Hi Kerry,


Welcome to the forum and thank you for joining................


I am so sorry that you are having to go through this still after to having to weather a divorce and all that entails. I do have a question, do you know if the modification that he received was even a HAMP modification? If it was an inhouse modification then the guidelines are not going to apply. If it is HAMP and you are divorced, your signature as a non occupying borrower was not necessary for the modification process.

Borrower Signatures:

Unless a borrower is deceased or divorced, all parties who signed the original loan documents or their duly authorized representative(s) should sign HAMP documents. However, servicers may encounter circumstances where a co-borrower signature is not obtainable, for reasons such as mental incapacity, military deployment or contested divorce. Servicers should use good business judgment, in accordance with existing servicing agreements and investor guidelines, when determining whether to accept a document without a co-borrower’s signature.

[sphireblue1]

Citimortgage does not seem to acknowldge a Quick claim deed. i have been going through foreclosure proceedings for nearly 5 years with them, i have a quick claim deed and it seems to be nothing......