Consumer complaint received 2016-11-17
Company: CIT BANK, NATIONAL ASSOCIATION
State: IN
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
in XX/XX/2009 I applied for and receved a reverse mortgage to make a few repairs and renovations to a home that was given to me by my parents. the lender was Financial Freedom/Citi XXXX and backed by FHA. We did the repairs that the appraisers said must be madebefore they would release the funds. so we did the repairs and then some, then we looked into weatherization and the young man who came over told us there were broken beams in the roof and he could n't put insulation because of that and the roof leaking. we knew we had a leak somewhere, because of inside damage. all of this was observed by th appraisers, it had to be. so we had homeowners ins on the house and so we called our insurance over to fix the roof, they said the only thing they could fis was the fixwas the damage inside due to the condition of the roof and it had been that way for some time. so we fixed it and then we got another insurance company because they offerd us lower rates on car/house package. it was XXXX XXXX sent over an inspectorand he got up in th roof and did a complete inspection. got in the attic and in the crawl space as well and the whole thing. a few days later I got a letter from XXXX, saying we were being canceled due to the fact that the roof had a XXXX year life left on the roof. Once that hit the system we were not able to keep homeowners ins. As soon as they know the roof conition they cancel us. so financial freedom started getting ins on the property just to protect their interest, no liability, and were making us pay for it, we couldnt pay it, so when it got to {$5000.00} they sued us and Illegally got a default judgement. all this time I had been trying to get some help to get this roof fised, so we could get our own home owners, since FHA was a XXXX on this loan and actually had their own separate loan number on the paperwork I also called them, that 's when I found out that the appraisorsof the original loan were required by law to follow specific guidelines and that any severe problems had to be disclosed to us and more importantly FHA. My contention is that financial freedom was aware of this but they did n't want to let FHA know of those serious defects because then FHA would not have backed the mortgage. and after the insurance companies discovered it and we began to investigate and I contacted FHA and started ted the complaint process with them, financial freedom/citi bank, and their appraisers. My house was to be sold yesterday at sheriffs sale, I file motions with the court to stop it but I do n't kno if it happened or not. But this loan they made me ws predatory because they purposely did not disclose the serious defects to FHA or us. Had they disclosed this FHA would not have backed this loan. and there is a grant I can get to fix the roof, but they wont give it to me now because FF foreclosed. this all started with the court action filed on behalf of ff and XXXX bank. that court number XXXX in XXXX BY A law firm of the name of XXXX P.C, XXXX XXXX, IN XXXX ( XXXX, FINANCIAL FREEDOM LOAN/CITI BANK # XXXX Phone XXXX, FHA # XXXX, I do n't kno if the house was sold yesterday I filed an appeal with the court involved on Monday ththe XXXX.

Company response to consumer: Closed with explanation