This complaint/report is written on behalf of my parents.
Citifinancial Mortgage wants to foreclose on their property and they have no legal right to do so. I'll explain it this way when my parents' nightmare began.
On December 29, 1994, my parents needed to refinance their existing loan with Ford Consumer Finance because they had to make a $2,000.00 repair on their big rig.
Ford Consumer Finance said that they would add it to the existing loan in which they only owed a little over $14,000.00 on. Instead of doing this, Ford wrote it up as a second mortgage. They said this was the only way that they could loan my parents the money. They also added that the money could be used to pay-off the first mortgage. So, they reluctantly agreed and the second mortgage cancelled out the first. Thus bringing the new mortgage to a little over $20,000.00.
So, my parents started making payments on the second mortgage in January of 1995. Throughout this whole entire time they thought that the money was placed towards the second mortgage. In fact, the bills with the second mortgage reflected that or so they thought.
After Associates Home Equity took the mortgage over in 1997, my parents made the payments to Associates. Then on July 19, 1999, they received by mail a Promissory Note stating the loan had been paid-off and satisfied. A letter from Hope Munoz said that if we ever needed their financial help in the future to give them a call. They thought that the loan had finally been paid off. Right? Wrong!
The next month came around and they received another bill from them. So, my parents called up Hope Munoz and asked her why they were still receiving mortgage bills if the mortgage had been paid off. She told them to give her a month and that so would see what was going on and that they shouldn't do anything yet until they heard back from her.
After a month past, they received a past due amount from Associates. So, they called up Hope and she said that after a review of the records they still owed on the mortgage. I got on the phone this time and asked her why they sent the Promissory Note cancelling the mortgage. She told me that they just had paid-off the first mortgage and that they still owed on the second mortgage. I was outraged over this because the first mortgage had been paid-off since 1994. I even explained it to this to her and she told me that they have no record of the first mortgage being paid-off and cancelled. I was enraged even more by this especially when she hung up on me.
So, I decided to go to the Surry County Registry of Deeds Office to find out what was going on. I searched through the records going back to 1987 the date of the first mortgage. I checked through all of the indexes by with anything under my parents' names. Here is what I found.
1995-Promissory Note cancelling out the first mortgage
1999-Second Promissory Note cancelling out the first mortgage again
When I saw the First Promissory Note cancelling out the First Mortgage on April 17, 1995, I was more then ticked off. I was pissed! The First Promissory Note was signed by Ford and Associates and the property had been released on December 29, 1999. In fact, the Second Promissory was filed as well and dated August 2, 1999. This one cancelled out the mortgage too. Both had the First Mortgage amount on them too.
It turns out they had my parents paying on the first mortgage twice and only putting very little towards the second mortgage. I showed both Promissory Notes (after photocopying them of course) to the a Mr. Cameron, the one who is in charge of the Registry of Deeds Office and the one who stamped both notes. I asked him to explain the fact that the first mortgage had been cancelled twice and had been paid-off twice in two different years. I couldn't explain it to me after checking both out for a few minutes. Instead he told me to get a lawyer.
So, I spoke with an attorney who advised us to keep paying on the second mortgage and to get an Account Payment History going back to 1987 and up until the present date. So, my parents continued to pay their mortgage sometimes paying a month ahead while I gathered up all of the old bills, Western Union receipts, and cancelled checks. This took a year to do and Associates refused to send me an Account Payment History. So a year later, we discovered that Associates had been bought out by Citifinancial Mortgage and no one told them that the load had changed hands either. They didn't know until a very rude CitiFinancial employee, Larry Hudson, called them up during dinner and told them that they hadn't paid on the mortgage since January and they had better pay up or else. This was around the spring of the year when we got this news.
After straightening him out and proving that the loan had been paid on, he stopped all calls. So, around 2003, I got on the phone to CitiFinancial and asked Customer Service for an Account Payment History. I told them that the IRS needed it for their records. Yes, I lied to them! They said that their records couldn't go back that far to 1987 and that they would send me what they had.
So, in July 2003, I received three payment histories from them going back to the 90s, but convinently not going to 1995. I did see how they misapplied payments, held Western Union payments long enough to make the interest more than the principle, split payments up into small amounts, and reversed payments. I was ticked off by this, but I couldn't see where the dirty dealings was at until I received another Payment History. However, this one went back to 1989. I was thrilled to get this one in the mail.
I began to add up the interest charges on the history and discovered the dirty part. The July Promissory Note stated that my parents paid out over $25,000.00 in interest charges, but the Payment History states that $13,544.25 had been paid in interest. A DIFFERENCE IN OVER $12,000.00!! WHERE DID THEY GET THIS EXTRA $12,000.00 FIGURE AT?!
I took my case to Citifinancial Mortgage and they tried to foreclose on my parents' home. They said that they would cancel the foreclosure if we paid them over $600.00 and forget about ever suing them because they would win in court. I spoke with another attorney who was having his own headache with them. He said to do what they say and when he can he'll help us out in the case.
So, they paid them and left off suing them for now.
Now, it's a different story. Like everyone else my parents fell on hard times and they became behind by a few months and tried to catch up by making two payments at one time.
On December 13, 2005, my parents was sent a foreclosure notice stating that they would foreclose on their house. My parents decided during this time to get a mortgage with another company something that they tried to do in the past, but Citifinancial always refused to allow a pay-off from someone else.
While my parents were speaking with a mortgage relief company to get a new mortgage with someone else, Citifinancial's attorney sent them 17 harassment letters which all say the something dated December 13, but sent to us on December 23 at the same time.
At the beginning of January Citifinancial sent to them, a Deed-In-Lieu of Foreclosure letter with a different date on it wanting $250.00 for the deed. Then, they sent them a letter stating options. Then they sent out a reinstatement letter.
This was something that they should have sent out first by my calculations. During this time, my parents still wanted to make payments on the loan, but Citifinancial refused any payments. They wanted it all in one lump sum.
So, after the final paperwork was settled with the new mortgage company, Citifinancial's attorney told my parents that the Foreclosuring hearing was called off. They thought nightmare over.
On February 2, 2006, my parents received 9 letters from their attorney stating that the house would be sold on February 15. It turns out that they held the trial without renotifying my parents and refused the pay-off from the mortgage company. The ltter that they sent to us was dated on January 26 and wasn't sent out until February 1. Time in which we could have done something.
I will not let CitiFinancial get away with this. The property had been released three times, there is $12,000.00 more on the interest from the first mortgage then what was paid out, and they screwed up by sending us those letters including their attorney who sent us all those harassment letters. My parents may now have to file for Chapter 13 in order to stall them until a court date can be given.
I will take them to Federal Court if I have to, but I will not let them get away with this scam!
I have all the evidence and I have the paperwork!
We will be speaking with an attorney tomorrow along with the mortgage relief company. I will present them with the evidence and we'll put an end to them once and for all! I have contacted the Federal Reserve Bureau and the NC Commissioner of Banks! By the end, they'll end up owing my parents money!
By the way, I want cash from them and no checks!
Dobson, North Carolina
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