Replies to This Discussion

Permalink Reply by Ben Benita on December 20, 2010 at 1:26am

 

For CITI, we have had them go to charge off at 9 payments missed and 12 payments missed.

 

ALWAYS best to just ask CITI "at what point will this go to charge-off status......"

 

We ALWAYS ask twice to be certain.

 

As you noted, it is actually often best to even have the Seller make a payment if need be to buy some extra time to get the deal done and avoid charge-off altogether.

 

Best of luck....seems you are learning some of the tricks of the trade!!!!!

Permalink Reply by Tiffany Carver-O'Malley on January 28, 2012 at 5:54am

I have a 2nd with CitiFinancial that has been turned over the a collection agency/attorney...does anyone have any experience as to the process to get a short sale approved with this.  Primary lienholder is offering 10% and I need to pull this together.  Can anyone give me a little advise?

Permalink Reply by Jim Schneider on December 20, 2010 at 3:48am

Thanks Ben, you da man!

Permalink Reply by Michael Schneider on February 2, 2011 at 6:54am

Jim,

My experience is roughly six months.  By OCC regulations, charge-off must be by the end of the month the loan rolls 180 DPD.

The Citi collections agencies can be difficult, to say the least.  I agree with Ben, it may be worthwhile for the seller to make a payment to Citi, so that the loan is not "sold/transferred" to an agency.

Sometimes the servicing rights are sold to the collections agency, which means the agency has full and complete authority.  Other times, the agency is collecting on behalf of Citi.

Legally, the loan, hence the lien, stays with Citi.  At least, that is my experience based on about four Citi 2nd's with an agency.

On a related note, Jim, be carefully with a CitiFinancial 2nd versus a CitiMortgage 2nd.  CitiFinancial will not release unless the commission is 5%.

Permalink Reply by Jim Schneider on February 2, 2011 at 9:31am

thanks bro!

Permalink Reply by Sheyenne Schultz on October 22, 2012 at 11:36am

Ask Citi what the time frame is...several times via recorded phone call. I would make sure you are speaking to someone in upper management, not at the customer service level though.

Citi usually uses ACI which is a collection agency who has MOST of their collection on 2nd's portfolio...

Just note that once it goes to a collection co...the collection companies are usually NOT HAFA participants...

so they don't have to abide by HAFA's rules, etc... and can collect what they want.

I've had good results with their collection companies though... they usually settled for the 10%, never had anything go over that amount so far... knock on wood.