Citibank Foreclosure Defense

CITIbank is one of the biggest financial institutions in the country, and it is recognized all over the world. The bank offers credit cards, mortgages, personal loans, commercial banking, and lines of credit. Still, in their dealings with customers, the institution is not always honest or fair. They sometimes threaten homeowners with foreclosure when they have no legal right to do so. In these instances, homeowners can fight back and challenge the foreclosure process.

If you have a home loan with CITIbank and they have notified you that they have started the foreclosure process, you need sound legal advice. You may have options that can help you avoid foreclosure and even keep your home. A Fort Lauderdale foreclosure defense lawyer can explain what your options are.

What is Citibank?

Citibank was first founded in 1812 and at the time, it was known as City Bank of New York. Today, the institution has 2,649 branches in 19 countries. 723 of these branches are located in the United States. Citibank offers mortgages, credit cards, personal loans, and lines of credit to individuals and businesses alike. It is now the third-largest bank in the country.

Just because Citibank is such a large institution, it does not mean that the company always complies with the law. The bank has been known to fraudulently notify homeowners of foreclosure even when they have no standing or legal right to do so. This is a direct violation of the law, and there are others Citibank engaged in as well.

Citibank Options to Avoid Foreclosure

On its website, Citibank outlines many options for homeowners who wish to avoid the foreclosure process. These include:

• Repayment plans: A repayment plan allows you to make your regular monthly payment, as well as an additional amount each month. These additional payments can help you catch up on past-due payments over a certain period of time. If you have surplus funds at the end of the month, or you have additional funds, working out a repayment plan with Citibank can help you avoid foreclosure.
• Deferred payments: Deferred payments are those that are pushed to a future date when you will pay them. If you currently do not have additional funds each month, a deferred payment plan can be very helpful.
• Partial claim: A partial claim provides you with a one-time loan so you have the funds to repay partial or missed payments.
• Loan modifications: A loan modification will permanently change the terms of your loan so it is more affordable to pay. The terms that are modified can include the interest rate, the length of the loan, and the amount of the monthly payment.

Although Citibank outlines many different options for homeowners, that does not necessarily mean that they work with homeowners in good faith. The bank will often deny homeowners a loan modification even when they are eligible.

Citibank Violations

Citibank has been subject to many penalties over the violation of federal consumer laws. In January of 2017, for example, the bank was ordered to pay $20 million in reimbursements and fines for not working with customers who were trying to save their homes. Some of the tactics the institution used were:

• Failing to inform homeowners of foreclosure relief options,
• Misleading consumers into thinking the interest from deferred payments was due at the end of the loan instead of at the end of the deferment period,
• Failing to cancel credit insurance paid as part of a mortgage payment when consumers had missed four or more payments,
• Prematurely canceling credit insurance for certain borrowers who were still eligible and later had their claim denied,
• Sent credit reporting companies incorrect information about consumers, and
• Refused to investigate the disputes of customers.

Unfortunately, those violations were just a few of many the bank committed. The institution was also fined $30 million by federal regulators after investigators found that the bank was holding onto foreclosed homes much longer than they are required by law. Federal law stipulates that banks and financial institutions cannot retain foreclosed properties for longer than two years after the process is final. In some instances, they can apply for an exemption that would allow them to keep a foreclosed home for five years. In a period of time that spanned just over two years, Citibank did this with 200 properties.

In other instances, customers have complained that Citibank offered them a forbearance agreement, but that these documents included a waiver. These waivers essentially have borrowers sign away their rights so that when the forbearance period is over, homeowners are once again at risk of losing their homes.

Citibank has violated the rights of consumers in many other ways, as well. Regularly calling or contacting borrowers, particularly in a harassing manner, and pursuing legal action against a homeowner when the bank does not own the mortgage are just a few of these. If you believe that Citibank has violated your rights, it is important to speak to a Fort Lauderdale foreclosure defense lawyer.

Do You Need a Foreclosure Defense Lawyer?

It is not always easy to determine whether your rights are being violated, particularly if you are unfamiliar with the law. You may need legal representation if any of the following are true:

• The bank declared you were behind on payments even though your payments are current,
• The bank refused to accept your mortgage reinstatement plan or your mortgage payments,
• The bank did not respond to your application for a loan modification within 30 days,
• The bank refused to review or honor your loan modification, or
• The bank pursued a short sale or foreclosure while they were still reviewing your loan modification application, a practice also known as dual tracking that is prohibited by law.

Our Foreclosure Defense Lawyers in Fort Lauderdale Can Provide Sound Legal Advice

If you have a home loan with Citibank and believe they are not treating you fairly, our Fort Lauderdale foreclosure defense lawyers can help. At Loan Lawyers, we have the necessary experience with Citibank and we know how to hold them accountable for unfair practices. Call us now at (954) 523-4357 or fill out our online form to schedule a free review of your case.