Citi Issues Approval Letter and Terms, then Service Transfer to Caliber Home Loans 3 days later!

Hi All!

It's still strange in the Short Sale world for sure!  Have Citi Loan in first, and a FHFC Loan in second.

Started SS in mid July.  Foreclosure judgement already granted to Citi back in March.  Able to delay foreclosure auction sale until November. Doing good, right?

Knew that a service transfer was going to occur in July.  Seller not notified until letter from Citi dated Aug. 7th of a transfer to Caliber Home Loans effective Aug. 23rd. Of course I informed seller of what I had been told by Citi.

I expected to get the "Busy Work" from Citi up until transfer date.  I have done this with BOA.  I specifically asked at the beginning if there was any chance of approval and cancellation of transfer.  No promises, no surprise.

BUT....We get an Approval from second. Good, We ALSO GET FULL APPROVAL from Citi as well.

Close by date is in Sept.  We are prepared to close as soon as is possible, but service change is occurring and that makes approval from Citi Null and Void.  Didn't the Investor (GSE, HUD) have to sign off on this?

Is this just torture, or is there anything that I can work with here?  Going to proceed with submission of package, contracts, etc...to Caliber.

How is Caliber to work with?  Anyone have any input on what kind of timelines I can expect with a previously approved and complete file being handed to them.

HAS ANYONE had an APPROVAL come in 3 days before a service transfer????

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Due to the time frames it's likely they will try not issue the approval letter, but i'd be escalating to get a copy of that at all costs. If you get a copy of the approval letter you may be able to have Caliber uphold the terms, but it is not guaranteed. Without a copy of the approval, your chances are slim to none in making that happen. If you received the approval letter you could also request if they could retain the servicing rights, but it may be to late for this.

Caliber Home Loans uses Res.net to process their short sales. They aren't the worst to work with or the best. If you know how to use Res.net it will increase the processing time frames.

[email protected]

310-564-6389

www.ishortsalenow.com

They did issue the Approval letter with terms dates, arms length, closing worksheets, etc... If the Investor approved, why transfer?  Why not close?  Why torture my poor homeowner and the buyer as well. (and me and title professionals I work with)  Not to mention it was the fastest approval in my history.  Less than 30 days!

Final terms even exceeded the Net Citi was asking for.  Me thinks that they are just playing the timeline game.  Just is a shame  that the runarounds continue to this day.

Also baffling is that the Court already granted Citi a judgement for foreclosure.  How is this file still transferable?  Curiously, right after our request for time to complete SS before auction, Citi's atty's sent a request to cancel or delay the Sale date.....Their reason was some reference to page 7 of Foreclosure blah, blah, blah.  (sorry)

Have not worked with res.net.  Is this an Equator type thing?

Thanks for your reply Brett!

When was the letter from Citi good through? Ask them to retain the servicing rights. Reach out to their escalation office. Res.net is an online platform which has tasks similar to equator, but just the layout and tasks are different.

Approval issued Aug. 20.  Close by date of Sept. 25.  EVERYONE including us knew of the impending Service transfer date of Aug. 22.

Although homeowner did not receive such written notice until a letter dated Aug. 07.  No 30 day notice required?

Every bit of correspondence I sent, included a request or inquiry to the status of transfer.  Only answer was if not closed by transfer date, transfer would occur.  Funny to send Approval with 35 day lead time to close but transfer to occur within next 48 hrs.  Oh, and call customer service, which led me back to the Specialist who was overseeing the Loss Mitigation person I was working with.  Who was strangely enough (not) available.  Also copied him regularly in correspondence.  Escalation at this point?

I'd still be escalating, but since it was set to be released today, it may be too late for them to request to retain the servicing rights. It's still worth a shot though.

Typically the good through date on the approval letter is set to expire prior to a service release date, so the fact that it is still good is a great bargaining chip for the new servicer. You may be able to get them to uphold it if you escalate enough.

Best of luck and if you need anything at all, don't hesitate to reach out to me as my door is always open.

310-564-6389

[email protected]

Brett, Thank you for your time and advice.  I guess the good news for now is that the Second Lien approval has no end date, and I have not lost a short sale yet.  Already have an appraisal amount (not a BPO) so I have a lot to work with.  Also a patient seller and buyer. If I am not too challenged by Res.net, my winning personality should do the trick!  

The files are supposed to be transferred in their entirety. I will just have to throw my marbles in a new game is all.  I also work with a fabulous title professional that spits out HUD's on demand.

You've got this! Hopefully Caliber will just uphold the approval for your transaction. If you are ever too busy or if you are interested in having a short sale processing team in your corner, don't hesitate to reach out to me.

cailiber will usually honor the terms of the previous servicer's approval.

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