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Report: #147842

Complaint Review: CitiMortgage - O'Fallon Missouri

  • Submitted:
  • Updated:
  • Reported By: Lantana Florida
  • CitiMortgage 1000 Technology Drive O'Fallon, Missouri U.S.A.

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In violation of my original Mortgage w/ Principal Residential, now owned by CitiMortgage,Inc. this FL hurricane victim's insurance check of $19,000.00 + was held hostage by CitiMortgage, who is forcing me to endorse the check and send it to them (which I've finally done), that's instead of them being the first to endorse the check and send it back to me so I can make needed repairs to my home. Why does CitiMortgage do this? In my opinion, it is because they can "convert" the check I've endorsed for their own use and benefit (that means CitiMortgage cashs my hurricane damage insurance check by depositing it in their bank or some other bank they use, holds my insurance funds which gain interest for CitiMortgage, and in doing so CitiMortgage makes a profit from victimizing FL hurricane victims. CitiMortgage also charges $35 per inspection to verify home repairs, that's after CitiMortgage gives you the first two inspections "Free". Wow, what a deal eh? Considering the extent of damage here in FL from back-to-back hurricanes in 2004, you'd think CitiMortgage would be helpful to us victims, community minded so to speak, but it appears they would rather profit from victimizing those who have experienced catastrophic events. CitiMortgage should be investigated by the State Attorney's Office and Insurance Commissioner.

Vincent
Lantana, Florida
U.S.A.

This report was posted on Ripoff Report on 06/28/2005 05:40 PM and is a permanent record located here: https://www.ripoffreport.com/reports/citimortgage/ofallon-missouri/citimortgage-converts-a-florida-hurricane-victims-insurance-check-for-their-own-use-and-b-147842. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
0Author
12Consumer
0Employee/Owner

#12 Consumer Comment

Citi Mortgage did the same to me in Lowell, Massachusetts flood 2006

AUTHOR: Floodvictim - (U.S.A.)

POSTED: Sunday, January 06, 2008
Citi Mortgage held my flood insurance funds hostage as well! They held $109,000 (Hundred and Nine Thousand) for over 8.5 months, and still 20 months later are holding over $36,000 (Thirty-Six Thousand). They also are about to Foreclose my home. I wrote this rebuttal on Jan, 6th 2008. If you find any help please let me know, I will do the same.

My Rip Off Report link shown below:

http://www.ripoffreport.com/update.asp?RipID=297440

-Jeff
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#11 Consumer Comment

Similar Scenario with Citimortgage and Loss Draft Problems

AUTHOR: Stephen - (U.S.A.)

POSTED: Thursday, December 27, 2007
I have had my loan with Citimortgage for approximately three years since the mortgage was purchased from Principal mortgage. My loss occurred on 2/22/07 as a tree fell during a windstorm and destroyed a brick outbuilding in a heavily wooded part of my property. My insurance company is State Farm and they quickly assessed the situation and gave me a fair settlement for my loss which amounted to $27,000. Of course, this amount is over $7,500 and the check which was issued by State Farm was paid to the order of Citimortgage and myself. I did my part and sent the check for the entire amount endorsed payable to Citimortgage. Enclosed with the check was an appraisal for my property, pictures of the location of the loss, and a written explanation where the loss occurred.

They sent the first draft quickly and efficiently for the first 1/3 or 9,000. Now, since that first draft I am at a standstill and I can nowhere with them and talk to no one of authority or get anyone to call me back concerning the remaining 2/3's. I have stated to them that I am not rebuilding that brick building in the wooded part of my property because there are many other trees which could do similar damage and I would like the remaining 2/3's sent to me.

This raised a lot of controversy and they told me I had to rebuild it. My mortgage record is perfect and I have never had a late payment. The equity in my property is over $230,000. With an appraisal included it seems that there interests are covered and they have no right to keep the remaining 2/3's. I told them to send out an adjuster and view the prior location of the outbuilding and they said nothing.

After about 10 more phone calls and 2 more reviews of my record came another decision....They said they could take the remaining 2/3's off the principal of my mortgage or $18,000. I feel as if they are stealing when offered this to me. They are actually trying to profit after my loss and my cash settlement? Where do I stand with Citimortgage because it seems that if I took them to court they would surely lose in this situation. Thanks for any feedback and I eagerly await your comments and suggestions.
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#10 Consumer Comment

The Human Factor

AUTHOR: Adam - (U.S.A.)

POSTED: Friday, December 15, 2006
I had athe same thing happen due to fire: I lost everything....EVERYTHING. lost draft recieved 204 thousand dollars (estimate of total repairs) to cover a 214K Mortgage. according to lucas - "They disperse these in thirds, you get the first third when CMI receives your Insurance Adjuster's Worksheet. You get the Second Third when you have turned in all required documents and have a property inspection of 33% or greater. The final third is released when you send in the Certification of Completion (CoC) form and have an inspection that shows 100% completion" This and only this is what they will give you. If you get that. my rebuild costs exceeded 236K. If you do the math. 66% of 204K is 136,000. That initself is idiotic in its design and is setup to benefit only the BANK Here is a Question for you LUCAS - How are you supposed to build 100% of a House with 66% of the funds. Do you work 100% of your requird hours for 66% of your pay?... NO!!! well neither does anyone else. Yet the bank would not/ has not released the required funds. and I am at 100% complete. This was after they jerked me around for a week after thier "inspector" reported that the house was 98% complete (I told them I would take 98% of my re-Building costs). BTW: The trim board on the fornt foyer was being insalled as he walked through...It was done before he left.) they told me to get afidavits and signed invoices from the person that installed the trim....what a crock. I told them I had a certificate of Occupancy and according to the International Building code of 2003 I was 100% complete. They relented and send me a check I could not cash. Made out to me and the Modular Home Company I paid in CASH. This was two weeks ago and they have been unable to relace that check. WHY! because They are "double dipping" charging you inteest on your mortgage while simultaneously holding the funds they are charging you intest on. They are bound and determined to keep those funds until they absolutly can no longer do so....then they will hold it another 3 weeks. They treated us like Thieves and Liars the entire time and gave us 136K to build a 200K plus home. and are still holding on to our money. ALL THIS plus the element of Human Suffering is enough to drive people mad. They are not there to help, they are ther to make money for the bank and that is what they will do. I have Re-fied with my Credit Union. I don't know how much they made off the funds they kept for so long. But it does not come close to the amount they would have made over the remaining 26 years of my mortgage that is now with someone else.
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#9 UPDATE EX-employee responds

Internal Qualifiers for when they Endorse and Release a check, or Deposit it

AUTHOR: Lucas - (U.S.A.)

POSTED: Friday, December 01, 2006
As an ex-employee of CitiMortgage, or rather the company that CitiMortgage outsources their Loss Draft Processing, I can supplement what Julie as been saying.

Julie is 100% correct in the fact that EVERY mortgage company has to right to hold a loss draft for any loss incurred to the property that does not exceed the balance owed.

When your original mortgage company sold to CitiMortgage, your mortgage became bound to CitiMortgage's procedures on Loss Drafts. It says that in your policy.

Now here is how CitiMortgage decides how to endorse and release (give you back the check endorsed by CMI) or monitor the repairs (require you to sign the draft and then CMI deposits it).

1. If the total insurance claim is over $10k they will monitor the repairs. This is unless:
A) You have State Farm's Premier Services
B) The amount of non-structural repairs included in the claim estimate would lower the total claim amount below $10k.
C) You owe less than $10k on the property.

Now, if the amount is below $10k, CitiMortgage (CMI) will still monitor the repairs if you are delinquent, in bankruptcy, or in foreclosure.

They disperse these in thirds, you get the first third when CMI receives your Insurance Adjuster's Worksheet. You get the Second Third when you have turned in all required documents and have a property inspection of 33% or greater. The final third is released when you send in the Certification of Completion (CoC) form and have an inspection that shows 100% completion.

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#8 Consumer Suggestion

Okay, okay.. they aren't changing the provisions of your mortgage

AUTHOR: Julie - (U.S.A.)

POSTED: Friday, July 01, 2005
I understand what you are saying Vincent. But what you don't understand is this, they aren't changing the provisions of your mortgage by holding those funds. They are a loss payee. If your mortgage says the funds are to be used to repair the house and they are the loss payee, you can bet they are going to exercise control of those funds, that is their right as a loss payee. It sounds more like a matter of interpretation, plus they may have internal policies about how they handle this as well (obviously they do).

If the repairs are done, demand an inspection. They are usually VERY quick to get the check back to you. At least my mortgage company is.
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#7 Author of original report

CitiMortgage Victim's Response to "This is Not A Rip-Off" (Julie)

AUTHOR: Vincent - (U.S.A.)

POSTED: Thursday, June 30, 2005
Julie's response is appreciated, except for the title of her Rebuttal, which assumes CitiMortgage (or some other similar corporation) is my original lender. It is not. My original lender who was very customer friendly (unlike CitiMortgage), was Principal Residential (recently purchased by CitiMortgage). In my Prinncipal Residential Mortgage, Ms. Julie, the provision you so eagerly typed out in verbatim fashion to support your position, is not present in any form. It is silent in that regard,hence my Rip-Off complaint. All my Mortgage says is "Insurance Proceeds shall be utilized to repair the property.". That's it Julie, no fanfare, nothing mentioning holding loss funds "hostage" to ensure repairs, not even one word about payee(s) or endorsement. Of course, you have the right to state, as you did in your rebuttal "...this is not a Rip-Off..." and that "...the only hold-up is you...". But that is only one person's opinion, one you are entitled to give when reviewing Rip-Off reports. However, R.E.S.P.A. prohibits any change in the original Mortgage terms (Principal) by a buyer of a Mortgage Company (CitiMortgage), unless approved by the borrower and lender. It may take some time for you to look-up what RESPA is Ms. Julie, but hey, that's just one person's opinion.
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#6 Consumer Suggestion

This is not a ripoff. This is not something new.

AUTHOR: Julie - (U.S.A.)

POSTED: Wednesday, June 29, 2005
This was in your mortgage, which you may not have understood. EVERY mortgage company does this, ALL OF THEM. This is not something new. In your mortgage, it states that you will add your mortgage company as a loss payee (that means their name is on the check). It also says this:

"Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect the property to insure the work has been completed to the Lender's satisfaction. Lender may disburse proceeds for the repair or restoration in a single payment or in a series of progress payments as the work is completed."

Having said that, they are handling your claim check EXACTLY like they are supposed to, the only hold up is you. Glad you finally signed it, that will get the ball rolling.

They do this to protect their interest in the property. If you don't fix it, they can use the proceeds to do so.

And yep, they are entitled to any interest earned on the check.
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#5 Author of original report

Put Myself in CitiMortgage's (The Victimizer's) Shoes? (rebuttal update)

AUTHOR: Vincent - (U.S.A.)

POSTED: Wednesday, June 29, 2005
Mike from Ragford VA "Consumer Suggestion" Rebuttal suggesting I put myself in CitiMortgage's Shoes (now that I'd like to do, but only as Chairman & CEO) reference CitiMortgage benefiting off FL Hurricane Victims by depositing our insurance check to make a profit from catastrophic events here in FL, doesn't apply in this case. It has been more than 10 months since the September Hurricanes and the repairs have already been made out-of-pocket by my wife and I because we never thought the other rip-off experts "Citizen's Property Insurance" would pay out agaisnt hurricane damages. I suggest MIke from Ragford VA (a CitiMortgage stockholder or employee perhaps?), put himself in our shoes.
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#4 Author of original report

Put Myself in CitiMortgage's (The Victimizer's) Shoes? (rebuttal update)

AUTHOR: Vincent - (U.S.A.)

POSTED: Wednesday, June 29, 2005
Mike from Ragford VA "Consumer Suggestion" Rebuttal suggesting I put myself in CitiMortgage's Shoes (now that I'd like to do, but only as Chairman & CEO) reference CitiMortgage benefiting off FL Hurricane Victims by depositing our insurance check to make a profit from catastrophic events here in FL, doesn't apply in this case. It has been more than 10 months since the September Hurricanes and the repairs have already been made out-of-pocket by my wife and I because we never thought the other rip-off experts "Citizen's Property Insurance" would pay out agaisnt hurricane damages. I suggest MIke from Ragford VA (a CitiMortgage stockholder or employee perhaps?), put himself in our shoes.
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#3 Author of original report

Put Myself in CitiMortgage's (The Victimizer's) Shoes? (rebuttal update)

AUTHOR: Vincent - (U.S.A.)

POSTED: Wednesday, June 29, 2005
Mike from Ragford VA "Consumer Suggestion" Rebuttal suggesting I put myself in CitiMortgage's Shoes (now that I'd like to do, but only as Chairman & CEO) reference CitiMortgage benefiting off FL Hurricane Victims by depositing our insurance check to make a profit from catastrophic events here in FL, doesn't apply in this case. It has been more than 10 months since the September Hurricanes and the repairs have already been made out-of-pocket by my wife and I because we never thought the other rip-off experts "Citizen's Property Insurance" would pay out agaisnt hurricane damages. I suggest MIke from Ragford VA (a CitiMortgage stockholder or employee perhaps?), put himself in our shoes.
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#2 Author of original report

Put Myself in CitiMortgage's (The Victimizer's) Shoes? (rebuttal update)

AUTHOR: Vincent - (U.S.A.)

POSTED: Wednesday, June 29, 2005
Mike from Ragford VA "Consumer Suggestion" Rebuttal suggesting I put myself in CitiMortgage's Shoes (now that I'd like to do, but only as Chairman & CEO) reference CitiMortgage benefiting off FL Hurricane Victims by depositing our insurance check to make a profit from catastrophic events here in FL, doesn't apply in this case. It has been more than 10 months since the September Hurricanes and the repairs have already been made out-of-pocket by my wife and I because we never thought the other rip-off experts "Citizen's Property Insurance" would pay out agaisnt hurricane damages. I suggest MIke from Ragford VA (a CitiMortgage stockholder or employee perhaps?), put himself in our shoes.
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#1 Consumer Suggestion

Put yourself in their shoes...

AUTHOR: Mike - (U.S.A.)

POSTED: Tuesday, June 28, 2005
Consider this scenario: They let you keep the check like you want. You say "The **** with Florida, too many hurricanes," cash the check and abandon the house. And of course quit paying the mortgage. Eventually they foreclose on the house, but they can't sell it for very much because of the hurricane damage.

So of course they're going to want to be sure you use the insurance money to actually repair the house. Although, if they want to inspect the repairs, they shouldn't be allowed to charge for doing so.
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