I'm going to tell a story about my sister in law. I don't know all their details, but some of this information may help someone else.
My sister in law and her husband filed bankruptcy on their business about four years ago. They did keep their house and cars. In the last year, Citimortgage would not accept payments from my SIL and returned the money. She has spent hours trying to figure out the problem and getting them to take her money. Obviously, if they don't take your payments you start to become delinquent according to the mortgage company.
Again, I don't have all the details. Apparently, they have a mortgage with a balloon payment. It seems this may have come due and been part of the problem. However, it was never communicated to SIL that the balloon was due. Even in her phone calls it wasn't communicated.
At some point, Citimortgage does apologize and admits they did not send notification the balloon payment. They now have until late September to pay the balloon. For SIL this will require refinancing their mortgage. Of course, it is hard to refinance when the current mortgage company shows your account as delinquent by months!!
Again more phone calls to Citimortgage to determine how she can get current if they won't accept payments. She speaks to a lawyer. She threatens to get her lawyer involved because she feels that if Citimortgage forecloses, they lose their equity of $50K and that technically Citimortgage is stealing from her.
She has the money to pay the mortgage and has all along. They just wouldn't accept payment. Finally, a customer service rep says she can wire the full amount and bring the account current. Of course, only after my SIL threatens to sue!!
My sister in law does wire the money. Citimortgage accpets and puts the account current. They now have until late September to make the balloon payment by refinancing, which SIL says is in the works.
Umm...why did it take so many hours of phone calls to get out of Citimortgage that a simple wire transfer of money would solve the problem? I hope this information might help someone in a similar situation.
Wire The Money
August 10th, 2010 at 01:14 pm
August 10th, 2010 at 01:20 pm 1281446412
August 10th, 2010 at 02:28 pm 1281450482
Of course, our experience with them only got worse after Katrina hit. They were the ONLY lender who ignored the government mandate to give hurricane victims a two-month break on their payments. We still had to pay, levees broken, unsure if our house was still standing, and jobless in the days after the storm.
We were lucky because we had savings and could pay, but having that mortgage and an uncertain economic future in New Orleans forced us to stay in Ohio, where we evacuated, and immediately get jobs. Going back became not an option.
On the bright side, our terrible Citimortgage experience made us determined to own our current home debt free, no mortgage, so we would never have to deal with another awful lender ever again. We got a loan from a local bank, cashed in some stocks for a big downpayment, then used the money from the sale of our new orleans home to pay off the loan.
Citimortgage was an awful experience, but we managed to make it work for us.
As for your sister. I didn't know banks still offered balloon payment loans
August 10th, 2010 at 02:35 pm 1281450938
August 10th, 2010 at 06:29 pm 1281464947
August 10th, 2010 at 06:41 pm 1281465712
August 10th, 2010 at 11:32 pm 1281483152