By MyBankTracker  Thu Nov 18, 2010

Citibank Foreclosures Under Review

Citigroup might need to review and refile thousands of mortgage foreclosure paperwork, according to written testimony (PDF) from the chief of the bank’s mortgage division. 

Citi is in the process of reviewing 10,000 foreclosure affidavits before the bank reorganized its foreclosure division earlier this year, said Harold Lewis, CitiMortgage Managing Director. The paperwork under review might have been signed by counsel outside of the bank that have now had their powers of attorney revoked. Citi expects the affidavits in question executed before fall 2009 will need to be refiled.

The bank also suspects 4,000 of its foreclosure filings might not have been signed in the presence of a notary. These foreclosures, processed through the bank’s Dallas center, are expected to be refiled by the bank. The bank’s February 2010 updates to its foreclosure-processing policy apparently ensured recent foreclosure filings passed muster.

“As noted previously, the changes and safeguards implemented this year give Citi confidence that there are no systemic issues in its existing foreclosure processes,” Lewis said. “To date, Citi’s review of foreclosure affidavits has not identified cases where Citi foreclosed on a property in error.”

“Citi, through the implementation of the procedures and reviews described above, is making every effort to ensure that no foreclosure goes forward based on an inaccurate or defective affidavit. Citi has not suspended its foreclosure process and believes there is no reason to do so.”

No Freeze for Citi

Citi was one of the big banks that chose not to freeze its foreclosure filings when the foreclosure crisis struck the industry this fall. The bank has stopped referring foreclosure-related matters to the David Stern law firm in Florida as a precautionary measure, and is in the process of transferring 8,500 cases away from the Stern law firm to other counsel.

The foreclosure freezes first started in late September when Ally GMAC’s mortgage division stopped foreclosures in 23 states to investigate whether its employees were taking all the proper steps before making home seizures. More specifically, lawyers had uncovered potentially fraudulent measures being taken by the bank. Employees known as “robo-signers” were signing off and filing thousands of pages of paperwork they most likely never took the time to read. Banks probably resorted to robo-signing in an effort to get out from under huge backlogs of foreclosures that stacked up due to a high volume of defaults after the mortgage meltdown and financial crisis.

Ally was just the first domino to fall. Ten days later, Chase Bank stopped foreclosures in the same 23 states to investigate the same potential problems. A few days after that Bank of America halted foreclosures in those 23 states. PNC Bank followed suit later that week on the same day Bank of America curtailed foreclosures across the rest of the nation. The federal government does not support the idea of a nationwide foreclosure moratorium, but attorneys general in 50 states are taking part in a joint investigation of foreclosure practices.

Do you think Citi should have curtailed its mortgage foreclosure filings when other banks did? Please let us know in the comments section at the bottom of the page:

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  • joan vaz

    Citimortgage is just as guilty as all the other banks I personally experienced their rush to foreclose on my home & charged me excessive legal fees ,which is their method of operation , they had promised me a modification & told me not to make my payment , the modification documents never came , then they rushed to foreclose because I had a lot of equity in my property . Then they promised a repayment & refused @ the last moment , it took 4 days & 23 calls before anyone would speak to me .then told me only the lawyer could set payment , citimortgage is a disgrace they have no regards for due process or the rule of law.

  • jackie mullin

    Citi Mortgage should be held responsibly for their wrong doings!!!!!!!!!!!!!!!!! I’ve been dealing with my loan modification for over 2 yrs know. The last thing they have pulled is they haven’t coded my approved loan modification, and sent my check back, and said I’m in foreclosue. I hold the copy of the new terms….. That mean nothing……

  • Jackie Mullin

    jackie mullin 0 minutes ago

    Citi Mortgage should be held responsibly for their wrong doings!!!!!!!!!!!!!!!!! I’ve been dealing with my loan modification for over 2 yrs know. The last thing they have pulled is they haven’t coded my approved loan modification, and sent my check back, and said I’m in foreclosue. I hold the copy of the new terms….. That mean nothing……
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  • Anonymous

    Citimortgage foreclosed on my property on June 2011.  This was after I was promised a loan modification I did the special three month payment plan in March of this year I was then told I had to do a hardship online again in April I called and said I have not heard from a loan specialist.  I spoke to a supervisor who assigned my loan to a specialist on May 17, 2011 who stated I wasn’t eligible for a loan modification but a partial claim.   When I asked why back in Jan. I was told they would do a loan modification the specialist began yelling I asked if I could speak to a supervisor instead so closed my file stating I deined the partial claim when all I did was ask to speak with a supervisor.  I contined to call everyday getting the run a round on June 7, 2011 they forclosed on my property after 10yrs.  I’m still fighting.  This come from hiring inexperienced people.  If i could change May 17, 2011 I would have let the loan specialist yell.