Citi 2nd Mortgage not paid for 6 years....what happens next?

MRDAVIDALEXANDER

LoanSafe Member
My last payment was in 2013. The mortgage was charged off but I haven't heard from Citi at all or no debt collectors. My house is still underwater so this could be the reasoning. But what happens next? Can they still collect or foreclose on it once it has equity? Or will the lien just stay there until I sell it?
 

OneHugeMess

LoanSafe Member
What state are you in? Is Citi still the current servicer? Are they still sending loan statements? Are you sure the account is charged off?
 

OneHugeMess

LoanSafe Member
If you can answer all of that, I can give you a decent answer on how to proceed forward. Being that your still underwater is wonderful, if you wish to negotiate this.
 

MRDAVIDALEXANDER

LoanSafe Member
If you can answer all of that, I can give you a decent answer on how to proceed forward. Being that your still underwater is wonderful, if you wish to negotiate this.
I live in Maine. The statue of limitations in Maine is 6 years so I’ve passed this. Citi is no longer sending statements and they are still the services as far as I know. I want to keep the house and live here for another 10 years or so but I don’t have the money to negotiate or pay. Thanks.
 

OneHugeMess

LoanSafe Member
So here is the deal. If the loan is truly charged off - no more interest is being collected or accruing. This is really the most important part. So long as the balance isn't growing, you are in a decent place.

Here is what is going to happen. If the Statue of Limitations has fully passed, and they haven't pursued a foreclosure or judgment against you. They just have a lien against the home. They cannot pursue foreclosure. Right now, I'm going to assume you have a 1st Mortgage, and they are 2nd in line.

Whenever you pay off your first loan or attempt to refinance or sell -- you will just have to pay off there lien. They will not subordinate or release it. Right now... you just have clouded title. You can still quit claim deed the home to a relative, or family, but you cannot sell the house without paying off their lien. I'd sleep well though. As long as you keep your 1st Mortgage, and Property Taxes current, you should be fine.


With that said... there are two things you should know.

One - if I were you, I'd attempt to pursue a settlement. Right now, if that lien is completely underwater, and not partially Citi may be willing to settle the account for 5 to 10 cents on the dollar. That may be significant savings compared to what the pay off might be in 10 years.

You also have to take into account, inflation. The dollar value of a non-paid $20,000 loan from 2006, is going to be worth a whole lot less in 2025.

There is another possibility. On your security instrument, deed of trust, or mortgage recorded in public record... on the first or second page, there should be a line that says "Borrower promises to repay this loan in full before Dec 01, XXXX". A lot of title agencies will actually accept the lien as "expired" after that date and allow a sale without a payoff so long as there is not a new recording from the loan servicer. This is not completely guaranteed but is a fairly good shot.

I would honestly look into potentially getting a settlement. Especially, if it's a small mortgage. If you can settle this for a few thousand dollars, I would consider borrowing the money from family, a credit card, something if you can.



 

bgriff

LoanSafe Member
You may want to contact a lawyer to find out what your State's laws are regarding striping off the 2nd lien. Since it past the SOL there may be provisions (similar to NY) where this is possible. I get's complicated so that is why you may want someone familiar with your state's lien laws to go over your options.
 

jimbojns

LoanSafe Member
Does anyone know the best way to contact CitiMortgage to discuss settlement? Every number I call they have no record of my mortgage and cannot help me.
Thanks!
 

Jzone

LoanSafe Member
Here's the number i used 2 years ago. not sure if its still good. they were able to find records from about 5 years earlier for me.
1-800-283-7918.
 

jimbojns

LoanSafe Member
Thanks, I tried that one. Since they sold off their mortgage business all of their numbers go to the new firm that took it over. I tried every opportunity I could find on the IVR to speak to someone and each person I talked to could not look up by load by loan# or SSN. It seems like if there is still a record of it in Citi's system, there is nobody available via conventional means to be able to access or find it. My lien with the county recorder still shows as CitiMortgage. As the tree said to the lumberjack, "I'm stumped"
 
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