Dear John: Let me relate to you my experience with CitiMortgage.
As with many others during the recession, we had trouble keeping up with our mortgage. At our worst point, we were behind two months. Then our daughter was hospitalized for a month.
We contacted CitiMortgage, told them we were sending in a one-month payment and would send in a double payment the next month.
At this time, I worked 33 days consecutively to be able to make this payment. They sent back our one-month payment, saying they could not accept it as we were two months behind. They then said we were now three months behind and put the house in foreclosure. And they said we would have to pay an extra $3,200 to get it out of foreclosure.
I replied that if they wanted our house that badly they could have it, and moved out of the house. My wife and I split, and she moved to another state to live with family. Then I found that [CitiMortgage] hadn’t put our home into foreclosure, but had sold our mortgage to another lender.
I have had my credit ruined, but have moved on. I simply want to let you know that even when we tried to work with them, it did us no good. D.B.
Dear D.B.: I’m very sorry to hear about your troubles. And I’m glad you decided to warn others about this sort of situation.
Most important, I hope your daughter is better. In the end, that’s really all that matters.
Yes, some banks are just trying to snatch homeowners’ properties, especially now that prices are rising (for the time being). But I’m sure there are also clerical mix- ups that are causing people to get frustrated and even ill — that’s what paperwork is all about.
But everyone should remember that it takes a long time for a bank to actually get control of your property. And it costs the bank money, especially if the homeowner isn’t making payments.
The main weapon banks have is intimidation. All they have to do is threaten to ruin your credit rating, and they have you over a barrel. It’s a brutal weapon, and the system needs to be changed in that respect.
As readers probably know, this sequence of letters in my column started a few weeks ago because a woman was having a problem with Wells Fargo. I tried to help the old-fashioned way — with a phone call — but got nothing but excuses from the bank. (Not everyone is eligible for a refinancing, the bank told me.) So when I finally got tired of hearing about this, I gave the bank a kick in the pants in my columns.
I don’t know if it’ll do any good, but it made me feel better. And maybe Wells Fargo — and now CitiMortgage — will behave better in the future.
Or maybe not. But I’m willing to embarrass a few more mortgage companies if that’s what it takes.
Dear John: Really respect you for your insight. I wonder if you have any thoughts about why CD rates (five-year especially) have not risen along with the increase in the five-year Treasury [notes].
Your input is appreciated.
Ben is killing us seniors! A.P.
Dear A.P.: Yep, Ben Bernanke, the head of the Federal Reserve, is killing all savers with his quantitative-easing experiment. Let’s hope fleecing savers is the worst thing that happens because of QE.
CD rates are going up slowly because banks want to keep their profit margins intact. The longer they can hold out against market rates, the more money they make.
Send your questions to Dear John, The N.Y. Post, 1211 Ave. of the Americas, N.Y., N.Y., 10036, or john.crudele@nypost.com.