Replies to This Discussion

Permalink Reply by Catherine Myers on February 9, 2010 at 5:11pm

I've never had them not ask for financials, so lucky you on the one you did in the past.

But I've got 2 with Citi right now. Both have approvals and have language waiving any further deficiency rights. (These are both first loans). I've had pretty good luck with Citi.

I do think you need to have your clients prepared to complete a full hardship packet with the financial worksheet, pay stubs, bank statements, etc. but call first. Each investor has different requirements. The two I have in right now, both asked for different items. One more than the other. So submit an authorization to communicate first, then just confirm what they need for this loan.

Good luck.

Oh, I'm in California too . They seem pretty well versed in our anti-deficiency laws.

Permalink Reply by Scott F on February 9, 2010 at 5:29pm

Thanks so much for your input Catherine, that is certainly positive!


Catherine Myers said:

I've never had them not ask for financials, so lucky you on the one you did in the past.

But I've got 2 with Citi right now. Both have approvals and have language waiving any further deficiency rights. (These are both first loans). I've had pretty good luck with Citi.

I do think you need to have your clients prepared to complete a full hardship packet with the financial worksheet, pay stubs, bank statements, etc. but call first. Each investor has different requirements. The two I have in right now, both asked for different items. One more than the other. So submit an authorization to communicate first, then just confirm what they need for this loan.

Good luck.

Oh, I'm in California too . They seem pretty well versed in our anti-deficiency laws.

Permalink Reply by David Dee on February 9, 2010 at 7:25pm

Great advice Catherine. Looks like you've got some good success with Citi waiving the deficiency. :-)

Permalink Reply by Kent Dills on February 10, 2010 at 12:46am

Scott, I'm in a Deed of Trust state too (Texas) and I've closed 2 shorts with Citi and they specifically stated in both Approval Letters that they were waiving their right to Deficiency Judgements. Not sure if that's always their policy though. Neither of my shorts were with clients with significant assets nor did they have to take discounts anywhere near the $250K you mention. Biggest discount was about $50K.

Permalink Reply by Fiona Barone on February 10, 2010 at 3:00am

Dear Scott, I recently closed a deal with Citi. My sellers were not delinquent and their only hardship was that the house was worth way less than what was owed. We were able to short sale the home and also had citi agree in writing to sign off on the settlement sheet that the mortgage was "satisfied in full", they were then able to purchase a new home for a much lower mortgage, their credit was never affected. Citi did however ask for their finacials before they issued an approval, their response to our situation was, we would rather take a hit, becauswe eventually the homeowner will default and abandon the home????? Go figure that one out. Citibank walked away with 65% of what was owed. Never once did they claim that there was a cap on income. I have also done plenty of other short sales where the banks have taken less than 50% of what is owed. I recently closed a deal with GMAC, they took a $320k hit on a mortgage that owed $600k. Citibank is easy to negotiate with, they will not make your sellers sign a deficiency judgement, just be sure to throw that in upon negotiation. Don't let them become delinquent, they can easily purchase 30 days after if all goes well!!! Hope that helps a bit:)

Permalink Reply by Scott F on February 10, 2010 at 4:34am

Thanks Kent and Fiona.
Fiona, how did you go about getting Citi to agree to sign off that the mortgage was "satisfied in full"?

Permalink Reply by Ben Benita on February 17, 2010 at 9:25pm

Most everything you ask is influenced by the investor on the note, has NOTHING to do with CITI. Keep in mind, Citi is the "Servicer" (who the Seller writes their check to each month), they get paid by the "Investor", could be Fannie Mae, Freddie Mac, "The Scott F Pension Fund" etc., to handle payments, pay escrows, etc.

Each investor has different short sale and loan mod. criteria that dictate both the process and consequences of a short sale

Best of luck and hang in there, Citi can be tough to deal with!!!!
Sincerely,
Ben Benita, Expert Short Sales Negotiator,
Virginia and Nationwide, www.United-IG.com

Permalink Reply by RACHEL BUTTER on July 16, 2010 at 11:37am

Will Citi allow me to buy my own home on shortsale with all cash and not stick me with deficiency judgment? Not late on payments. Mortgage A paper loan 1st and 2nd mortgages with citi. Bought in 2006 for $644,000 now worth $350,000. Have good income but no assets. California

Permalink Reply by Tricia La Motte on July 19, 2010 at 7:02am

Scott, I just closed a CITI short sale - I got the approval in just between 3-4 weeks. CITI had both the first & the second, and they took around $200,000. They did not have the seller sign a deficiency judgement. It was accepted as settled.
Working with our negotiator at CITI was a dream.Aside from a Wachovia short sale, this was the smoothest yet!

Tricia LaMotte
Keller Williams VIP properties
Santa Clarita, CA
http://www.SCVHomePro.com

Permalink Reply by Ben Benita on July 19, 2010 at 8:23am

Tricia -- NICE WORK....I would bet CITI was also the Investor on the note.....

Servicers get short sales done at RECORD speed when THEY are the Investor (when the loan is a portfolio loan the Servicer and Investor are one in the same)

Permalink Reply by Nate Gerard on August 2, 2010 at 2:09am

I've found Citi to be reasonable and quick to work with but the investors (when not Citi) to be difficult and time consuming. Also, be sure to stay in touch especially if the BPO seems delayed more than a week. On my first one I ended up calling after four weeks with no BPO and found out my Citi contact had gone on maternity leave and my file was in limbo.