Consumer complaint received 2015-05-15
Product: Mortgage — Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure — 
Company: CITIBANK, N.A. (VA)

In XXXX I took a XXXX mortgage loan from XXXX XXXX, the loan I agreed to, was modified to have a balloon payment. I did not find this out until the paperwork was presented on the closing date. The interest rate was very high 12.5 % I still took the loan because I had many unexpected expenses at the new house, and I had paid XXXX for an appraisal that I would lose. I expected to consolidate my bills and refinance both loans in 6 months. 
Refinance not possible at the time so I made the payments and contacted Citibank to ask them to refinance the loan with better terms, they refused refinance so I asked for a loan restructure I filled out the hardship paperwork and never got a reply I called many times and it was never approved or even completed. Because of the expenses and the high payment on this loan my other debt climbed until I could no longer afford the house, and due to the actions of banks like Citi and other the house values plummeted so I could not sell the house. I took a large 401 K loan to try to cover the gap in price, and sell it, but I could not sell the house, and neither lender would assist. I opted for a short sale, and stopped making payments to either so I could afford to move out. XXXX bank allowed the foreclosure to complete even though we had a buyer with a ratified contact for XXXX because a form in the package was outdated, and I did not get them a new one fast enough. Citibank strong armed me out of an additional payment claiming they could not consider the short sale unless I was one payment less past due. Once the foreclosure went through I contacted Citibank and asked them how the debt would be resolved, then responded, " We do not know '' the account was not in their system anymore. I expected the VA PMI would cover the shortage and both banks would get some money, at foreclosure but did not hear from either about any remaining amount. I received a letter from XXXX XXXX XXXX A collection agency dated XXXX/XXXX/XXXX informing me that I owed XXXX, the original loan was XXXX. I responded asking them for supporting documentation. I had paid over XXXX in payments, and they should have received something from the foreclosure sale this question remained unanswered. They did not fully respond to my inquiries and failed to remove the account from credit reporting agencies as required by law. 
Over 1 year passed before they responded with a letter dated XXXX I responded again at that time asking to settle for a lesser amount, because I felt there was a TILA violation, they acted in bad faith, and in so doing caused me damages, they took over 1 year to respond. And they failed to provide the requested information, established under the Law reference following Court Case : Fields v. XXXX XXXX, XXXX XXXX XXXX and XXXX XXXX, XXXX, XXXX Circuit Court, XXXX XXXX. 
Citibank recently sent a new statement dated XXXX/XXXX/XXXX ( received XXXX/XXXX/XXXX ) indicating the loan was accelerated. I called the collection company and explained my dispute again, and offered a small settlement in lieu of my taking legal action. ( They later counter offered XXXX on XXXX/XXXX/XXXX ) I then received paper work indicating they filed a case in the XXXX circuit court on XXXX/XXXX/XXXX to obtain a judgment for the full amount. Once again acting in bad faith.