Chicago Tribune What's Your Problem? column: Check 'lost in mail' doesn't pay the rent

Nov 04, 2008 (Chicago Tribune - McClatchy-Tribune Information Services via COMTEX) -- C | Quote | Chart | News | PowerRating -- Shirley Brumfield always paid her rent on time, but in these difficult economic times even that is no guarantee of stability.

When her landlord could no longer pay the mortgage, the bank foreclosed on the house she was renting in Chicago's South Austin neighborhood.

In an effort to get her out of the house quickly, CitiMortgage Inc. made Brumfield an offer. If she handed over her keys immediately, the company would give her a check for $1,500.

Brumfield quickly found a new place, and on Sept. 15 signed a "surrender of possession agreement" with CitiMortgage, promising to be gone in two days.

She moved out Sept. 17. Under terms of the agreement, she would receive a $1,500 check within 10 days.

Brumfield said she desperately needed the money.

The landlord for her new rental asked for a $4,200 security deposit, including first and last month's rent. Brumfield told the new landlord she was $1,300 short, but showed him the signed agreement with CitiMortgage as proof she could pay the remainder within weeks.

When the check didn't arrived by Sept. 27, Brumfield called the man who represented CitiMortgage in the deal, Douglas Perry. Perry, of Property Consultants Realty, did not call back.

Days later, with the check still missing, Brumfield panicked. Her new landlord began asking for the outstanding money.

Unable to get the money any other way, Brumfield cashed in a life insurance policy.

"I really hated to cash it in," said the mother of three, "but I had a family to think about. I had to do what I had to do."

Brumfield, who works for an Oak Park advertising agency, then contacted the Legal Assistance Foundation of Metropolitan Chicago for help.

Staff attorney Mara Block wrote Perry a letter Oct. 8, threatening a lawsuit if Brumfield did not receive her $1,500 by Oct. 15. Block sent a copy of the letter to CitiMortgage's legal department.

When the Oct. 15 deadline passed without any sign of the check, Block contacted What's Your Problem?

"First, [Perry] said the check got lost in the mail," Block said. "I giggled when he said that. He said he stopped payment on the first check, and they're sending the second check."

Weeks later, the check still hadn't arrived.

"It is awful," Brumfield said last week. She hoped her story would help warn others of the potential pitfalls of signing cash-for-keys deals.

"Even if I don't get the money, maybe this will stop them from doing this to others," Brumfield said.

The Problem Solver called Perry on Oct. 24. He said a check had accidentally been sent to the wrong address.

"Frankly, I don't know if they want me discussing this situation with the press," Perry said.

But then he did.

"We hope to have it resolved soon," Perry said. "It's unfortunate, and I'm sorry it's worked out the way it has. There's no reluctance to pay her."

He said Brumfield would be paid "shortly."

The Problem Solver then called Mark Rogers, a spokesman for CitiMortgage, which is part of Citigroup Inc., and faxed him a copy of Brumfield's agreement.

On Wednesday, Perry hand-delivered the check to Block, who then gave it to Brumfield.

"I'm very happy," Brumfield said. "I thought it was just a lost cause and [CitiMortgage] was going to get away with it."

Brumfield said she will use some of the money to help a daughter who recently went away to college. She'll use the rest to pay bills.

"It's not a lot," she said. "But at least it will get me caught up to where I should have been a month or two ago."

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