Citibank Mortgage Complaint

Citibank Mortgage department,

FHA mortgage Loan servicing, payments, escrow account Missouri

- I applied to Citibank for a loan repayment plan because I had fallen one month behind on my mortgage. They granted me one and I made the first payment. Then Citibank contacted me and said I did not have a repayment plan because the person that set it up did not have the authority to do so. So I applied for a loan modification. After months of submitting documents ( 2 and 3 times ) Citibank offered to extend my mortgage over 40 years saving me $65.00 per month. No principal or interest rate reduction. I declined because I have been paying on this mortgage for 16 years and the change would have shifted most of my payment back to interest, reducing how much went towards principal. In - - I received a call from Citibank asking me if I still wanted the loan modification. I told them no and that it would benefit them much more than it would help me. Then in - - I received a letter from Citibank saying they had set up a escrow account for my homeowners insurance and my payment would increase by $520.00 per month. My homeowners insurance is only $210.00


mess out with my insurance company. But my biggest complaint is that they were trying to get me to accept a loan modification that would only reduce my base mortgage payment by $65.00 per month, while adding an additional $310.00 per month to me insurance expense and shifting most of the payment from principal to interest. They never told me this part or that I would be required to escrow my homeowners insurance. Fortunately I never accepted this horrible modification. But how many others fell for this trick and ended up paying more each month while having less go towards their principal? I believe this is a predatory loan practice on the part of Citibank.