OK, talk to me about what happened to Citigroup on the market today.

[Skidmore]

Please. Citimortgage holds our mortgage. What's going on? Do we need to start getting concerned?

[sinkingfeeling]

1. Probably a response to their announcement they were cutting 50,000 jobs.

I have 2 houses, each mortgaged by Citi.

[ProdigalJunkMail]

2. what's the worst that could happen to your mortgage?

worse comes to worse your mortgage is sold or Citigroup goes belly up and someone buys your mortgage for pennies on the dollar...YOU still have to pay it though...

sP

[Skidmore]

3. We do pay and have been paying extra toward the principal

for some months now.

[dipsydoodle]

6. If the your mortgagor tubed

your mortage would be assigned to another mortgagor which should have no effect on you.

[dkofos]

5. Unless YOU can buy it for pennies on the dollar.

[ProdigalJunkMail]

8. wouldn't it be sweet if the banks would entertain that sort of offer

"Hi, yes, I realize my mortgage balance is $325,000, however, in an effort to help you out with your current cash problem, I would like to offer you $50,000 now...probably better than you will get from a bankruptcy settlement."

sP

[crispini]

18. Hahahhahaha. Maybe I should call them.

That would be too funny.

[pokercat999]

7. If Citi sells the mortgage for pennies on the dollar why

shouldn't the home owner get the first or a competitive chance to buy it? Maybe that should be a law or something????

[ProdigalJunkMail]

9. see post just up-thread

cause, man, that would be sweet

sP

[JuniperLea]

4. You mean SaudiGroup?

Don't the Saudis own a major stake in CitiBank?

If so, this is a little different than the gobbling up of other banks we've seen recently. Do we know what their exposure to sub prime loans is?

[trof]

10. My mortgagors went belly up several times.

We had a real banking/credit/mortgage crisis in NH back in the 80s.
I wrote checks to 4 different lending institutions in the course of one year.
One would fold and another one would buy/take over their assets.
It won't affect you at all.
Rest assured, they'll keep telling you who to make the check out to and where to send it.
;-)

[pokercat999]

11. The question becomes, do they still have an actual

contract with terms? Can they produce your signature on that contract? If they can't can they still collect, if you refuse to pay? My guess is that a lot of these companies would not be able to produce documents that would hold up in court. Sounds like a wonderful specialty for an aspiring young lawyer trying to make his/her bones.

[trof]

12. If you wade through the boilerplate language in the mortgage

somewhere in there you'll find that a mortgage can be sold or 'assigned' at the lender's will.

A couple of years ago my original mortgage with ABN-Amro was sold to Wells Fargo.

[pokercat999]

14. Yes but can they PROVE they still have a mortgage?

They need proof of the ORIGINAL docs.

[trof]

15. Sorry, I don't get your point.

If you have one.
I signed a document agreeing to borrow money and pay it back.
That document and obligation can be sold and/or transferred any number of times.
I still owe the money to whoever winds up owning the document and my obligation.
This is just silly.

[pokercat999]

20. Yes of course BUT the party buying the mortgage must

have proof that they have legally purchased that mortgage. That there IS a mortgage on the house just their WORD isn't good enough they NEED the piece of paper, no paper no mortgage. True? And my guess is that most of these mortgages that have been sold and packaged and resold and the original mortgage holder merged with another and so on, no longer have that paper work and may not be able to produce a chain of custody. It's an interesting question for a layman without experience in that industry.

My point is if they no have an actual document signed by the borrower they cannot collect the loan. Isn't that true?

Is that silly?

[mnhtnbb]

13. You better hope your house never is destroyed by fire, flood, tornado, etc.

Citimortgage acquired our loan from ABN-Amro just days before our house burned down in August 2007.
It took 6 months of phone calls/e-mails/lawyers and finally filing a complaint with the NC Commissioner
of Banks to get Citi to apply the first payment from our insurance co to reducing our loan amount and
figuring a new payment amount (it was an interest only loan, so if the principal amount owed was reduced, the payment amount was to be reduced) Yes, we were still obligated to be making payments
on a destroyed house until the insurance settled. The insurance co tried to get away with not paying
us what they owed us--which was the loan amount on the house.

It was a nightmare.

When we bought a new house last May, we took out a loan with BB&T. If they sell their loans, they retain servicing of them, which means I could walk into my local branch office, where I am known, and
discuss the mortgage with them.

I would NEVER let Citi--or any lender that didn't have an office in my town and held servicing of
their loans--have a mortgage on my house again. NEVER.

[Pithy]

16. Citi is too big - they won't let it fail

Trust me on that. They'll find a way to screw the little guy to keep Citi afloat.

[TexasObserver]

17. If they fail, you'll still have to pay, but you may have some additional options.

Suppose you have a mortgage for $100,000.

Suppose the entity which purchases a package of mortgages with your loan in it pays only 50 cents on the dollar for your paper. You may be able to find a new lender and get your mortgage owner to take 80 cents on the dollar. They get cash. You get a lower principal and lower low amount. You get a new mortgage with a new lender.

Probably, though, nothing will change.

However, it's not going to happen. Citi cannot fail. The government cannot let it. Not now.

[Thickasabrick]

19. Citi has my mortgage too. I honestly think that "fear" is what

brought their stock down this week, I think it will come back and will definitely get a government handout.