Hi everyone, my client tried to do a loan mod with Citi a couple weeks ago but it was denied. Are there any benefits/drawbacks to mentioning this in their hardship letter? I'm not sure if Citi's loan mod and short sale dept communicate with each other or use the same systems. Or does it even make a difference?
thanks
Scott
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As far as mentioning the denial on the short sale, lenders DO NOT CARE what the ahrdship is. For short sales, it is simply a numbers game. The Phase I negotiator, or processor, merely checks to be certain you sent in the hardhsip letter (along with all the other docs). 90% of the time the letter is not read and the ONLY document they review is teh settlement statement. The only real time a hardship comes into play is near the end of the short sale if you need to negotiate on the numbers or terms......you can play up the Mr. and Mrs. Jones are getting divorced, jost lost their jobs, etc. Tugging on the heart strings is dirty in negotiations, BUT, often effective when dealing with higher ups at the banks.....Also, if you are converting to short sale BE CERTAIN the lender knows this. We have taken over post loan mod. deinal and lost several weeks b/c the Servicer, CITI in your case, did not convert the file from Loan Mod. to Short Sale....
Great info Ben, thanks very much.
Ben Benita said:As far as mentioning the denial on the short sale, lenders DO NOT CARE what the ahrdship is. For short sales, it is simply a numbers game. The Phase I negotiator, or processor, merely checks to be certain you sent in the hardhsip letter (along with all the other docs). 90% of the time the letter is not read and the ONLY document they review is teh settlement statement. The only real time a hardship comes into play is near the end of the short sale if you need to negotiate on the numbers or terms......you can play up the Mr. and Mrs. Jones are getting divorced, jost lost their jobs, etc. Tugging on the heart strings is dirty in negotiations, BUT, often effective when dealing with higher ups at the banks.....Also, if you are converting to short sale BE CERTAIN the lender knows this. We have taken over post loan mod. deinal and lost several weeks b/c the Servicer, CITI in your case, did not convert the file from Loan Mod. to Short Sale....
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