Citi...stopped Paying 2nd...need Advice!

heregoesnothin

LoanSafe Member
Nov 30, 2012
35
2
8
Foret - Thought it may help to tell you about my situation. I had the exact same 2nd mortgage with CitiMortgage (even 8.5% like you), for $68K. We stopped paying our 2nd 4 years ago. The 2nd was (and still is today) completely underwater. After a year of continuing to pay our 1st mortgage, we decided to walk away from the house and stopped paying the 1st as well. The home is slowly crawling through the foreclosure process, still not taken by the bank. Anyway, regarding CitiMortgage. They continue to send us statements stating the balance and that it has been "charged off." We've received a few letters from a law firm saying they've been assigned to collect the debt, but they've never done anything to collect. I'm praying they'll cancel the debt when the foreclosure finally goes through, but we probably won't get that lucky. We may eventually try to settle with them, but we're in no hurry. It does stay on my credit report and continue to badly affect my credit. So for your case, I'd say you have a ton of time and don't worry about it, unless you're in a hurry to improve your credit. Then you could continue trying to settle with them. But I'd think the longer they have to wait, the more willing they'll be to accept a lower amount. Don't answer your phone from any phone number you don't know. As others have said, it's best not to talk to them so they have as little information as possible. Good luck to you!
 

Foret

LoanSafe Member
Feb 2, 2016
20
6
3
44
Foret - Thought it may help to tell you about my situation. I had the exact same 2nd mortgage with CitiMortgage (even 8.5% like you), for $68K. We stopped paying our 2nd 4 years ago. The 2nd was (and still is today) completely underwater. After a year of continuing to pay our 1st mortgage, we decided to walk away from the house and stopped paying the 1st as well. The home is slowly crawling through the foreclosure process, still not taken by the bank. Anyway, regarding CitiMortgage. They continue to send us statements stating the balance and that it has been "charged off." We've received a few letters from a law firm saying they've been assigned to collect the debt, but they've never done anything to collect. I'm praying they'll cancel the debt when the foreclosure finally goes through, but we probably won't get that lucky. We may eventually try to settle with them, but we're in no hurry. It does stay on my credit report and continue to badly affect my credit. So for your case, I'd say you have a ton of time and don't worry about it, unless you're in a hurry to improve your credit. Then you could continue trying to settle with them. But I'd think the longer they have to wait, the more willing they'll be to accept a lower amount. Don't answer your phone from any phone number you don't know. As others have said, it's best not to talk to them so they have as little information as possible. Good luck to you!
Hi heregoesnothin!

Thank you so much for sharing your details! It always helps so much to read what folks in a similar situation are going through. What is clear is that I have a long way to go as you have been waiting 4 years and others much longer! Good to luck to you as well!

I have been out of the country for a while and just got back on Saturday to find that there are there minor changes on my case. Citi sent a counter offer for 50% in early March. Also found a letter dated mid-March from Alliance One stating that Citi has hired them to collect the amount. Ironically a representative from Alliance called today and I picked up unknowingly. I have a tendency to pick up as I have small children and always worry that the worst has happened and they need to reach me. The woman was VERY aggressive trying to scare me and even told me to walk out of the house. She changed her tune when she realized I simply didn't care and I was about to hang up: she asked if I would be willing to settle for 25% instead of 50%. So I realized she was willing to play the game. I simply do not have that money and told her so. She advised that I could get it from family and I replied no. She offered to give me a couple of weeks to see if I could come up with the money and we ended the conversation there. I have no way to get that much money, so hoping and praying!!
 

betterday

LoanSafe Member
Mar 26, 2013
9
0
1
Hi All! There is an update on my case and I need advice again! Last week on Feb 25, I emailed a settlement offer to City. I used one of the formats I found on this forum (posted by Maurice). I offered $6K to settle the $61.5K loan. Today I received the following email from CitiMortgage:

“Your file has been noted concerning the charge off of your account and you have been instructed that, going forward, you must confer with Citimortgage’s Recovery Division at 800-395-8897 for further assistance.”

What does this mean? Is “charged off” a good thing or a bad thing? Does this mean that they can now sue me or foreclose? Any advice on what I should do? I am trying hard not to freak-out and I am anxiously waiting for feedback! Thanks in advance!
I recently sent a settlement offer via mail to the 1000 technology drive, O'Fallon MO address - Attn Recovery Dept
I was given a number for Citibanks Centralized Recovery Dept 800-824-9907 by one of the collection agencies listed in the forums. The automated system forwards your call if collection has been outsourced. Mine is with a law firm that filed suit last year. I am in the process of trying to understand the best settlement offer plan. It seems the law firm is more interested in a judgement and I hope CitiMortgage may consider the settlement offer but wonder if I should be trying this with the law firm or Citimortgage's recovery dept, or both.
 

Foret

LoanSafe Member
Feb 2, 2016
20
6
3
44
OMG I think I might have a success story! Could it be?!

For some reason, my case at Alliance One was transferred to a gentleman. He was so much nicer and polite, although he kept pushing for %25. We spoke a couple of times and I remained adamant each time that I will not provide financial docs and that I am not in any hurry so they might as well leave me alone. He called me this morning to tell me that Citi has agreed to settle for $10K: without any financials from me! I know that I could probably hold on longer and get a better offer, but I really want to get this behind me and move on. I just got the letter by email and reviewed. I am worried because this specific part is very vague:

"Upon receipt and clearance of all funds, we will notify our client that you have satisfied your account. Our client, Citibank, will be responsible to release its lien associated with this property and waive the deficiency balance on the above listed account".

There is nothing in the letter guarantying that the lien will be released and nothing about about what will happen to my credit. I called back Alliance and was told that this is their standard letter (advised/approved by their attorneys) and they cannot change it nor put in the specific terms and conditions I am asking for. Next I called Citi directly and got confirmation about the settlement agreement. However Citi is telling me that they cannot give me a letter either because everything is being handled by Alliance One. So I am very worried about paying the money, and then finding out later that Citi can: #1-still come after me, #2 refuse to release the lien, #3 refuse to forgive the remaining debts and/or #4 refuse to report "settled in full" to the credit agency.

Does anybody know if this is standard? Did anybody face this situation and was able to convince them to change the letter? I am so worried that this could be a scam and that they might be fooling me just to get the money and then end up having Citi coming after me in the future or having to fight for the lien.

Thanks in advance for any advice and guidance anyone can provide! I am truly grateful for all the incredible help!
 

PatZZ

LoanSafe Member
Jan 30, 2011
2,026
157
63
Nearby
OMG I think I might have a success story! Could it be?!

For some reason, my case at Alliance One was transferred to a gentleman. He was so much nicer and polite, although he kept pushing for %25. We spoke a couple of times and I remained adamant each time that I will not provide financial docs and that I am not in any hurry so they might as well leave me alone. He called me this morning to tell me that Citi has agreed to settle for $10K: without any financials from me! I know that I could probably hold on longer and get a better offer, but I really want to get this behind me and move on. I just got the letter by email and reviewed. I am worried because this specific part is very vague:

"Upon receipt and clearance of all funds, we will notify our client that you have satisfied your account. Our client, Citibank, will be responsible to release its lien associated with this property and waive the deficiency balance on the above listed account".

There is nothing in the letter guarantying that the lien will be released and nothing about about what will happen to my credit. I called back Alliance and was told that this is their standard letter (advised/approved by their attorneys) and they cannot change it nor put in the specific terms and conditions I am asking for. Next I called Citi directly and got confirmation about the settlement agreement. However Citi is telling me that they cannot give me a letter either because everything is being handled by Alliance One. So I am very worried about paying the money, and then finding out later that Citi can: #1-still come after me, #2 refuse to release the lien, #3 refuse to forgive the remaining debts and/or #4 refuse to report "settled in full" to the credit agency.

Does anybody know if this is standard? Did anybody face this situation and was able to convince them to change the letter? I am so worried that this could be a scam and that they might be fooling me just to get the money and then end up having Citi coming after me in the future or having to fight for the lien.

Thanks in advance for any advice and guidance anyone can provide! I am truly grateful for all the incredible help!
I don't have an answer, but it surely sounds disconcerting - given we know these people will lie and scheme and scam in the name of God. If that's the exact language, it does not specifically say that the lien will be released. Gotta wonder why it doesn't. Why the game-playing? I would be very uncomfortable. Perish the thought of handing over $10k for nothing.
.
 

Foret

LoanSafe Member
Feb 2, 2016
20
6
3
44
I don't have an answer, but it surely sounds disconcerting - given we know these people will lie and scheme and scam in the name of God. If that's the exact language, it does not specifically say that the lien will be released. Gotta wonder why it doesn't. Why the game-playing? I would be very uncomfortable. Perish the thought of handing over $10k for nothing.
.
Thanks Patzz for the quick response! Yes that is exactly what I am worried about :-(...As much as I want to put this behind me, I do not want to fall into a trap.
 

bkakca

LoanSafe Member
Jul 5, 2013
189
20
18
Thanks Patzz for the quick response! Yes that is exactly what I am worried about :-(...As much as I want to put this behind me, I do not want to fall into a trap.
Thanks Patzz for the quick response! Yes that is exactly what I am worried about :-(...As much as I want to put this behind me, I do not want to fall into a trap.
Call Citi again. Ask them if the details from Alliance are all correct, be polite. Then ask them if Citi will be forgiving the remainder, or how that amount will be handled. Then ask them approximately how long it will take for the lien to be released. THEN, ask the Rep if they could please get all the information you've just discussed, sent to you in an email, as you would like to get this money sent out right away, but are a bit concerned about doing so without some reassurance. We've had some success with this route. Offer to send them an email first, so they can easily respond. It's worth a shot.
 

bkakca

LoanSafe Member
Jul 5, 2013
189
20
18
Thanks Patzz for the quick response! Yes that is exactly what I am worried about :-(...As much as I want to put this behind me, I do not want to fall into a trap.
They may not report the debt as Settled in Full, they did not with our two Helocs. They were reported as Settled for less than full amount. But they were settled, and we were able to sell one of the properties. Still have the other. We did receive 1099s on the forgiven portions, and had to pay taxes on those amounts.
 

Foret

LoanSafe Member
Feb 2, 2016
20
6
3
44
Hi All...Just wanted to share with you the latest on my case...After a LOOOOOT of back and forth with Citi and Alliance, we finally decided to go with it praying for the best. So we did send the payment and have been waiting anxiously since then for what would happen next.

I followed up with the county a couple of times and finally got an email saying that "CitiMortgage has filed the Release to Land Recording at Judicial Center on 07/07/2016". Also on my credit, I see the following "Payment Status: Collection/Charge-Off" and "Remarks: Payment after charge off/collection. Settled - less than full balance"

Can I finally jump up and down with happiness? Is this success? Or quite the opposite?????
 
  • Like
Reactions: Wake and Moe Bedard

bkakca

LoanSafe Member
Jul 5, 2013
189
20
18
Hi All...Just wanted to share with you the latest on my case...After a LOOOOOT of back and forth with Citi and Alliance, we finally decided to go with it praying for the best. So we did send the payment and have been waiting anxiously since then for what would happen next.

I followed up with the county a couple of times and finally got an email saying that "CitiMortgage has filed the Release to Land Recording at Judicial Center on 07/07/2016". Also on my credit, I see the following "Payment Status: Collection/Charge-Off" and "Remarks: Payment after charge off/collection. Settled - less than full balance"

Can I finally jump up and down with happiness? Is this success? Or quite the opposite?????
Sounds like you've got it. I would request a copy of the recorded release, from the County Recorder, and pay the small fee if there is one, just to have that copy in my hands.

Ours are online and we can print them out, they are just not Official copies. BofA never sent us the recorded copies, but I pulled them from the online site and saved them.

Congrats!
 
  • Like
Reactions: Moe Bedard

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,828
466
1,000
48
Southern California
www.loansafe.org
I agree that it sounds like you have got this done. Congratulations!
 

Foret

LoanSafe Member
Feb 2, 2016
20
6
3
44
I received a letter from the county clerk stating that the debt is “fully paid and discharged…and that the lien of the Deed of Trust is hereby released”. Wow!

I am still having a hard time believing it. Still thinking I am missing something that will come back to haunt me. I know that I could have settled for way much less if I had played harder and waited longer, but I am just so glad this is over. It’s now behind me. Most importantly I can save the money I was throwing at Citi for my kids’ college!

Now that this is done, I am already dreaming of what is next: finding a solution for my 1st mortgage (as now I know nothing is impossible). Although my 1st is underwater and does not qualify for HARP, I would love to find a way to refinance or lower my payment: so that I can save more for my kids’ college.

I am so emotional right now! I don’t know how to say thank you! I am so glad I stumbled into this forum. How can I thank Moe for founding this forum and always providing guidance/assistance/answers? How can I thank TomEason for the great strategy? Or Ready2Run and Patzz for always jumping in with a response each time I needed help, was freaking out or was about to give up? Thank you as well to bkakca and to heregoesnothin along with anyone whoever posted in this forum to share their stories. I learned so much from other people’s stories.

I am truly grateful!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,828
466
1,000
48
Southern California
www.loansafe.org
You are welcome Foret!

Your success is everyone's payback. Thanks for the kind words and we all wish you the best!
 

msolare

LoanSafe Member
Aug 4, 2016
15
1
1
You are welcome Foret!

Your success is everyone's payback. Thanks for the kind words and we all wish you the best!
Moe, Need your help...
Please read my post 8/5/2016 - msolare
SLS is driving me insane.... after countless letters (registered) to them CFPB, Attorney General, State agencies, they will not address the concerns citing it was the previous servicer, no comment on their behave... Its been now close to 2 years of back and forth, to no avail ----
UPDATE: suddenly yesterday I get a call from SLS- they will "write-off" the $20,000+ past-due as of 2010 (which is absolute nonsense since we were in CH 13 and payments were made to acct through Trustee) and suddenly will "honor" 0% percent going forward. This is not all of our concerns, a beginning, asked to get this in writing, no comment. With all the heartache this company has given us, and all that I have read, thanks to your site... I want them out of our lives, I want to settle, should I try the start at 2-5% method and go from there?
Problem: there is equity... haven't made a payment since they've held this - 2/2015, cannot afford to make payments... HELP!
Appreciate your feedback
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,828
466
1,000
48
Southern California
www.loansafe.org
Hello msolare,

It sounds like they are charging off the loan which means they will not pursue foreclosure. If you settle, it will be for them to release the lien so you have free and clear title. I would start at 2-%% if that is what you want to do.