Modify that loan?

Here's a good one: Citigroup, which just so happened to have received the biggest federal bailout to date, offered to modify the loan terms of an OC subprimer named Daniel Sadek. But Citi Residential Lending filed a notice of default after Sadek failed to make the new payments on the house (one of at least four residential properties he owns in OC). Sadek isn't talking. The Register's John Gittelsohn lays it out.

Quick Loan Funding, which Sadek founded in 2002, wrote about $4 billion in subprime mortgages before it collapsed in 2007. Sadek made, and eventually lost, a fortune through Quick Loan. He bought a Newport Coast mansion, a fleet of exotic cars and a condo in Las Vegas where he became a high roller at the blackjack tables.

[CUT]

The latest notice of default said Sadek owed $34,888 as of Dec. 18, indicating he had not made a single payment since the loan modification. The notice says Sadek still has 90 days to catch up with his payments before he will lose the house. The record is unclear how Citi got authority to modify Sadek's original mortgage. Citi declined to discuss Sadek's loan, citing client privacy rights.