Skip to main content
S
SheilaM883193
Contributor ⭐
April 23, 2018

Paying off Citimortgage HARP mortgage problems

  • April 23, 2018
  • 2 replies
  • 5699 views

 In 2013 my husband and I qualified for the HARP loan modification through Citimortgage. $156,000 was deferred until 2036, while we started paying on $76,000 monthly until then. The following year, our state's "Hardest Hit Fund" applied $50,000 to that $76,000, and in 2016, Citimortgage applied another $5,000 for "good behavior" in paying on our loan. Therefore, this first loan of $76,000 will be paid off early.

 

Fast forward to today: May 1 was to be our final loan payment on the $76,000. Our contract with Citimortgage says, "$156,000 shall be deferred and I will not pay interest or make monthly payments on this amount." Today I was speaking with a Citimortgage MANAGER no less, and first she told me she never heard of HARP and that Citimortgage never had any such program, even though Citimortgage's logo is on everything and signed by them. She said we must continue making monthly payments even though the first mortgage will be paid in a couple of weeks or we must order a Payoff, which will trigger our Balloon Payment of $156,000 will be due immediately in one lump sum.

 

Advice as to what can be done?

Thank you.

      2 replies

      GailL1
      GailL1
      Community Champion ⭐⭐⭐
      April 24, 2018

      Get out your loan documents and read over them.

       

      These are the things that you should pay special attention to -

      1.  Is there a prepayment penalty for paying off the $ 76,000 early? 

      2.  What does your loan docs say about what happens when you pay off the $ 76,000?

      3.  What was the original length of the $ 76,000 mortgage?

      4.  Was the $ 156,000 a forebearance amount?  And what do the loan documents say about how it can be repaid and when.

       

      This webpage will explain many details.

      The Difference Between Principal Forbearance and Principal Forgiveness

       

      It does not sound like you have Principal FORGIVENESS, therefore the $ 156,000 has to be paid.

      Usually, a borrower would have to refinance this forebearance amount because it does come as a "ballon payment" - that or they sell the house and pay it off.

       

      You said . . . . Our contract with Citimortgage says, "$156,000 shall be deferred and I will not pay interest or make monthly payments on this amount." 

      Yes, that is the way it works UNITIL the main amount is paid off ( the $ 76,000) - then the borrower is responsible for paying the forbearance amount - either all at once with their own cash OR refinance the amount with the same or a different institution since hopefully you do have some equity OR sell it and pay it off.

       

      I guess some institutions may have set the conclusion to this forebearance amount in your loan documents; giving interest rate and term but this should also be covered in your loan documents.

       

       

       

       

       

       

      IT‘S ALWAYS SOMETHING . . . . .. . . . Roseanne Roseannadanna
      J
      JackS375985
      Contributor ⭐
      September 18, 2025

      It looks like Citimortgage is falling for the all-too-common error of mixing up your paid amount with your deferred HARP balance. Your contract said that the $156,000 was to be deferred with no interest or monthly payments; this is conceptually similar to reverse mortgages, which allow deferred payments without requiring an immediate payoff (see: how reverse mortgages work).

      Gather and escalate all supporting documentation, including loan modification documents, Hardest Hit Fund documentation, and any correspondence showing the credits were applied. Consider sending a certified letter outlining the terms of the contract and asking to speak with a supervisor or the HARP department. You may also want to bring in a housing counselor or legal aid to help ensure the bank complies with the agreement. 

      Terms & ConditionsAccessibility statement