CitiMortgage foreclosing letter during 13

[COrnguy]

I have been on road trips working the last 30 days and find a letter from CitiMortgage stating that they are proceeding with a foreclosure! I am in month 57 of my 60 month payment plan and don't understand what is going on? The letter had a $1500 check enclosed stating that what I have been paying does not correct things. I understood from past monthly bills, that I was supposed to be making $1411 payments and I had been paying $1500! What am I missing here?

Also, got a letter from the BK Court stating that they have released CitiMortgage from the "stay". I am at a total loss here and depression has it's claws deep in me once again. Can't even funtion and think straight. Not sure I can fight this thing any longer, being so close to being done with my BK13.

Letter says I gotta contact their 3rd party lawyers. Last time, I saw that, it added $11,000 to what I owed in BK.

What to do?

[SMinGA2]

It sounds like they filed for relief from the stay - and that motion was granted.

Has your mortgage payment changed at all, or did you get behind? If you have online access check your payment history. Make sure they applied payments correctly.

This is not something that started in the last 30 days. You would have had to be behind (according to their records at least) for them to petition the court.

[emsbronco]

Interesting. My wife is fighting a motion to lift the stay by Citimortgage, who is claiming no payments since september 2011, for a past due amount of just over $11K. Their lawyer sent an affirmation to the court saying that he has reviewed all documents and data and verified that the facts are correct. We have been paying (we did miss 1 month), so we have provided proof of payments to her lawyer along with the statements from citimortgage showing payments were applied, so we're fighting it.

One thing I did notice is that the remaining balance on our monthly statement is about $8K less than the amount that the lawyer is claiming for the current balance. So, I wonder if there is a screwup within Citi. I have read of horror stories where they use a seperate account for payments during bankruptcy and don't credit the proper account.

[spidge]

Argh!!!! No fun for sure. One thing I always wondered was that my mortgage company never told me where to make my payments during my ch 13 payment period. I have been sending them through the normal channels since inception. It does look like the payment gets posted as received, but it seems to take about ten days for them to break it down and apply it correctly.

Maybe a call is in order. Gulp.

[HHM]

You are getting bit by some of the issues that are coming to light about mortgages in chapter 13. The banks ARE allowed to charge post petition fees and whatnot. New rules went into place recently whereby they would have to notify you, but you are so close to the end, that is probably little help.

In any event, I am guessing you are leaving out some facts, as SMinGA2 points out, this is not something that happens overnight. There would have been a Motion for Relief from Stay filed, you and your attorney would have received notice, then a hearing would have been held roughly 30 days after the service of the motion. Then the motion gets granted. Also, then there is the entire foreclosure process. It is unlikely they could actually foreclose in 30 days. They could "start" foreclosure, which in CO takes about 6-9 months. They would need to issue a new Notice of Default which doesn't sound like it has happened.

So, whatever the issue is, it probably arose 3-6 months ago. So, what happened?

[spidge]

So HHM, as long as I have not received any notices and the payment is credited maybe I shouldn't sweat it? I do always wonder about why it shows as received yet it is not dispersed to the proper bucket for many days.

[sandra123]

I would contact my bankruptcy attorney immediately and see what can be done to straighten it out. Obviously, there is a misunderstanding on the Chapter 13 payment plan. As long as you been making your current payments, as well as any arrears due, you should be fine. As a general rule of thumb, as long as you stay current on your payments this wouldn't happen. Call your bankruptcy attorney immediately! Good luck

[HHM]

So HHM, as long as I have not received any notices and the payment is credited maybe I shouldn't sweat it? I do always wonder about why it shows as received yet it is not dispersed to the proper bucket for many days.

There could be any number of reasons....

Primarily, it probably has to do with the way the servicer handles the payments. Since you are in BK, the payment probably gets handled separately and manually. Until that time, it gets deposited into the servicers suspense account (which incidentally, the interest on that suspense account is one way a servicer makes a profit).

I probably wouldn't sweat it, there is not a whole lot you can do about it. The payment is being received, it is being applied.

[witeout]

I know this thread is old but I wanted to add that CM did this to us as well. We paid EVERY payment, had double, sometimes triple proof.
Those scumbags tried to legally take our house twice during 13. It was so stressful and caused a LOT of work for us and our atty. It was so bad at one point I almost told them to take the house even though I had paid every darn month. It finally got corrected after MONTHS. But they could pull this stunt again at any point.

[spidge]

Well, if my mortgage company (US Bank) does this to me they can have the house as it is in disrepair. We have a list of items to take care of once we are out of BK, but because of these types of stories I refuse to add to the value of the house in any way. I doubt they will as they gave me a great modification.

Hopefully someone that has gone through this to the end can share more with us.

[papie]

Well, if my mortgage company (US Bank) does this to me they can have the house as it is in disrepair. We have a list of items to take care of once we are out of BK, but because of these types of stories I refuse to add to the value of the house in any way. I doubt they will as they gave me a great modification.

Hopefully someone that has gone through this to the end can share more with us.

I had my Chapter 13 plan modified to voluntarily surrender our house to US Bank...one year ago...and they still haven't done anything with that house. They call me every month asking if we want to modify and I tell them to hurry up and foreclose already so I can be done with it.. They haven't even set a sell date. I wouldn't count on US Bank trying to take your house. lol

[spidge]

I had my Chapter 13 plan modified to voluntarily surrender our house to US Bank...one year ago...and they still haven't done anything with that house. They call me every month asking if we want to modify and I tell them to hurry up and foreclose already so I can be done with it.. They haven't even set a sell date. I wouldn't count on US Bank trying to take your house. lol

I would be good with living in it rent free for a while.

[witeout]

Here they foreclose really fast. CITI tries to foreclose on paying customers?! I believe this company is overwhelmed in my state and makes a lot of mistakes because of it. Also the entire state has empty foreclosed houses just sitting around. Why CITI would want to add paying customers homes to these sitting empty ones is beyond me.

[karm43]

Wow scary my mortgage bought out and the new mortgage company still won't talk to me keep getting you are in a bk contact your attorney well i did still did not receive any bill! Lucky thing I pay my mortgage through a company had that set up years ago. But still cannot stop worrying. My heart goes out to you, stinks that now you have to stress and put all this time into fixing it.