Update on Short-Sales Involving CitiMortgage
April 30, 2009 by Danilo Bogdanovic
Filed under Short-Sales and Distressed Properties
CitiMortgage is currently running 45+ days behind on starting the short-sale review process. That means that once the ratified contract has been submitted to CitiMortgage, it takes them at least 45 days to even look at the file. Then it takes them another 45 to 90 days to review and process the short-sale. You’re looking at 90 to 135 days to get a response from CitiMortgage on a short-sale.
Why the delay? Three main reasons:
- A huge increase in the number of short-sales.
- Being short-staffed.
- Lack of an efficient internal review process.
One title company who deals with them often said that the short-sale department of CitiMortgage is getting over 130,000 emails per day. Those emails are a combination of borrowers inquiring about the short-sale process as well as agents, sellers, title companies and short-sale negotiators submitting new short-sales or inquiring about ones already submitted. Some of the folks at CitiMortgage and other banks have literally hundreds of cases on their desks at one time and the pile is growing.
Real life example…
A short-sale I’m currently working on with buyer clients involves CitiMortgage as one of the creditors. It’s been about 75 days since the offer was ratified and submitted to CitiMortgage for approval. The case is still in the review process though we’re hoping to hear back soon.
And we’re lucky - the only reason it’s this far along after 75 days is because the title company and negotiator knew the direct contact information of someone near the top of the food chain who pushed the process along and put this particular short-sale deal at the front of the line.
So, if you’re wondering why things are taking so long with CitiMortgage short-sales, now you know…
Thanks for the great news, this is what I assumed prior to dealing with citimortgage. I really the folks I been dealing very nice. In fact the gentleman I was working with says he is working on well over 150 files.
So yeah I feel, be nice to them, you’ll get more accomplished. I have been waiting on approval letter now for a month & he walked it into the closing dept. It would be beautiful if could figure out a way to offer services to them as a 3rd party processor.
I have seen days turn into weeks turn into months. I would understand that these files take time to research, get BPO’s as well as determining if it makes financial sense to allow the short sale to go ahead..0. The problem I am having is that the foreclosure train keeps rolling down the track, when these short sales are being reviewed.
You must be aware that the foreclosure proncess in court does not stop just because you are modifying or short selling your home…
It is like a race to the finish line. Short sale First Place - Foreclosure close second or visa versa…. Just keep informed and working on those workouts.
Its been over a year for me trying to work out issues with Citi. Its been two years since I first started the process when I notice the trouble I was getting into. Unfortunately, you can’t get their attention before its too late. I just recieved a new loan package…a 40 yr loan with $10,000 of fees added to the total. The monthly amount was reduced $137. I’m 60 yrs old, and now forced to try to short sale. I sent a letter 3 weeks ago, don’t expect to hear from them for some time but I’ll continue to try to make contact. I get different advice whether or not to continue to make any payments. I can’t make the original payment. Does anyone have any experience with this?
Does anyone know any ideas of how to get out of a loan when not in financial difficulties. I bought in 2006 and my condo is about $40,000 upside down. I have two mortgages. I planned on living here 3-5 more years and hope the market rebounds enough to sell, but I don’t know if it will rebound that much (I need about 30% bounce-back to break-even).
Our urgency just ticked up a notch as my wife and I found out we’re having a baby, so the condo I bought when I was single no longer suits our current situation.
One option that I was thinking of presenting to Citimortgage (2nd mortgage) was for me to pay $20,000 cash toward 2nd mortgage and ask them to write off the rest ($25,000). As 2nd lien holder, this would protect a portion of their investment b/c with a short sale or foreclosure they’d likely get nothing. At least here they salvage something and save themselves the headache.
Would this work?
I have 9 months to figure this out. If I got rid of 2nd mortgage, I’d be close to solvent & gain some much-needed flexibility. I could stay here about two years but it would be tight. We can’t make it 5 years, especially if we have another baby in that time.
Thanks so much! Any options would be greatly appreciated!!!
Banks typically look for a hardship - financial or medical (or both). Having a baby does not constitute a hardship to most banks. Neither does needing a bigger home due to having a child. Not to say that there is no way that the banks will approve a short-sale, but your chances are slim. What state are you located in? I ask because each state has different laws that affect the probability of a short-sale being approved as well as the process itself.