Citifinancial concern

Hi,
My wife and I had entered a contract with them a few years ago with a home equity loan and the house in question went into foreclosure. We had notified them that this was happening and they were supplied with the mortgage insurance grantor info. The Manager of our local office did not act on this info and contacted us later wanting us to sign a "personnal loan" for half the amount. We never signed anything and now they have sent the account to a collection agent and they have hired an Attorney to try and get us to pay! This is back in 2003 and I sent a letter to Citifinancial about this in 2004. The Attorney wrote and said the house did indeed go into foreclosure and "that does not eliminate Citi-financial the opportunity to be paid the amount due to them. They are not required to pay off the first Lien holder in order to to protect their interest." They were given the opportunity to file motgage insurance paperwork to end our obligation, were they not? As said before, we NEVER signed ANY papers saying we would agree to paying back half of the origanal amount owed. How can this happen? How can they send this to a collection agent?

Thanks for your time,
Mark & Lori Rosenblad

[annjd]

They can try to sue for the lost value when they sold they home.

Often however they will not actually sue. You might want to see if they will settle or compromise as well.