Citibank failed to record Deed of Trust

[Robert Steele]

Dumb asses didn't record their lien on my property in the county records. I just found this out when the title company couldn't find it. I couldn't find it either. When I closed over a year ago it was not at a title company and the closer who came to my house said she'd send copies of all the paperwork later. Never got those either.

Hmm, I wonder what kind of fun I could have with this and screw with a too big too fail/jail bankster at the same time? >-)

[Lance H.]

I was involved with a similar situation at the large bank I work for.

I'll put the full story below, but the result was the borrower played it very well. I originated the loan he negotiated with our executives. Keep in mind this is one of the largest banks in the country and he walked away having us write an in house refinance for ~450k (jumbo loan) on an investment property to combine a 1st and 2nd mortgage at almost 150% LTV on a 40 year fixed rate of 2%; and for the cherry on top, we payed all closing costs!

How that happend in our case the borrower took a loan with us at 300k in 2003. Property value went up to ~600k so he actually went out and took out a HELOC wih a different lender for 150k. The borrower disclosed our loan to the 2nd lender, they of course still wrote the HELOC as the borrower had equity and they just scored and got a 1st position lein.

None of it mattered until 2012 when the borrower went to refi. I was the loan originator for the refi and we of course figured out the title issues. By now the property value was back down to about 275k. We were going to refi our loan under HARP but found out we couldn't because we were now in 2nd position. On top of that, the borrower had now moved out so this was now an investment property.

We of course had bank executives involved at this point. At first they tried to just deny the refy and move on. Borrower was an inteligent guy and quickly figured out the spot he had us in. He threatened to just stop paying as he was making payments on a severly upside down, cash flow negative property that he wasn't living in.

In the end the borrower beat the bank!