Consumer complaint received 2017-05-25
Company: CITIBANK, N.A.
State: TN
Product: Debt collection
Sub-product: Mortgage debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Seized or attempted to seize your property

Complaint:
In  XX/XX/XXXX , I obtained a Home Equity Loan wi th CitiFinancial now called OneMain.  The contract was put on file  with our county title an d deed office as a second mortgage securing the loan.     After  XXXX  from the  XXXX  in  XX/XX/XXXX , I began a career with  XXXX   XXXX . The money from this loan was used to pay {$10000.00} for training and lodging in  XXXX  Georgia with  XXXX . I was hired in  XX/XX/XXXX  after completing the training and on  XX/XX/XXXX  "  XXXX   XXXX  '' I was laid off for 9 months.     During this time of unemployment, I made every attempt to renegotiate the payments with the local branch  manager. Pa yments were put on the back but I could not make them. Eventually, the  manager invoked a Judgment Lien o n the home in  XX/XX/XXXX .     I was called back and laid off until in  XX/XX/XXXX  I decided to file for Chapter  XXXX  protection to prevent Foreclosure. I had  XXXX  previous  failed Chapter  XXXX  because of lack of funding. I eventually was hospitalized for  XXXX  and became unemployable.     In  XX/XX/XXXX , my pay stabilized with my VA  XXXX  and I was able to make repairs to my home. In  XX/XX/XXXX , I filed  for CH  XXXX  to stop the collections, foreclosure and legal proceedings. The trustee required that I repay all debts at 100 % which was completed  XX/XX/XXXX .     During the repayment plan,  XXXX   XXXX   XXXX  bought the debt from  CitiFinancial o f which I paid {$8900.00} of this debt. CitiFinancial did not respond to the filing at the  XXXX  meeting and did not get paid the $  XXXX  that was left on the secured side of this loan.     In  XX/XX/XXXX , I received a letter from CitiFinancial/OneMain CONGRATULATING ME on the FORGIVING 2ND MORTGAGE DEBT and also issued a  XXXX  with the secured amount that was still outstanding. Probably thinking that I was going to have to claim this as income on my  XX/XX/XXXX  taxes. NOT!   I reached out to my trustee 's office who in turn gave me the number to the IRS  Insolvency Unit which is in the same Federal buil ding in  XXXX . She informed me that I was insolvent and did not have to repay this debt.     I requested my attorney to seek permission from the trustee to incur debt so I could pay my Chapter  XXXX  early and make home repairs with a VA CASH OUT REFI. The motion was approved and I proceeded to seek a lender that would approve me.  XXXX   XXXX   XXXX   XXXX  and  XXXX  were the  XXXX  lenders that I reached out to only to be denied. I asked why and the only answer I got was the fact that there was a lien on my title which prevented the loan from being approved. All other guidelines were met but that is what denied the loan.     I reached out  to the county title and deeds office and was informed that the 2nd mort gage was lien free and that there may have been an issue with computer systems that track these things being outdated. I decided to wait until  XX/XX/XXXX  when I was about to close o n my Chapter  XXXX .     When my case closed in  XX/XX/XXXX , I began to consider the option of purchasing compared to a va refi-cashout for repairs. So in  XX/XX/XXXX , I was given a discharge date from my attorney and began the process to purchase a home.  XXXX  and  XXXX   XXXX   XXXX   XXXX  are in the final stages of finalizing my closing for the home. Using the payment history during my Chapter  XXXX  and not missing any payments allowed me to be approved.     Today,  XX/XX/XXXX  I received a call from the Title Company that is handling my loan stating that I have a Judgment an d Lien st ill enforced on my current property. After speaking to the woman, I informed her that this was impossible because this was removed from the title last year. After calling  the County Ti tle and Deed Office the Lien was removed but the 2nd Mortgage and Judgment was still in place.     I decided to use my attorney and get information. He informed me that since I had received the  XXXX  this debt was no longer enforceable by the judgment. I called CitiFinancial Bankruptcy/Recovery Department  XXXX  and was given the run around.     This company failed to clear up the rest of the legalities after they FORGAVE the 2nd MORTGAGE and now I am paying for it in so many ways. If I lose this loan because of their failure to remove this judgment I will definitely loose it.

Company response to consumer: Closed with non-monetary relief