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.