Citi Bank - Rip off
I am currently dealing with a short sale where Citi bank have the second lien. This is not on equator due to the type of loan.
Both approval letters expired because the property did not appraise and another appraisal (and price reduction) was needed. Citi bank charged the seller $150 for the new approval letter, and have only allowed two weeks to close which is clearly not enough time for the first to issue their approval letter (as they need the letter from the second to issue theirs) and also for the buyers lender to process the loan.
Citi have already advised me that any other letter or action will cost $150 to be paid upfront. I am dealing with a local branch, so I don't know if this is a corporately sanction practice.
Regardless if it is, does anyone know who I can speak with at Citi head office because this practice is totally unacceptable and a rip off of people who are already in a desperate situation?
Replies to This Discussion
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Permalink Reply by Andrew Utter on
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Hello BJ,
I've not heard of Citi charging for new approval letters. I recently finished coordinating a Citi short sale with three approval letters, and they did not charge for any of them. If you haven't done so already, try calling the Short Sale Department/Loss Mitigation at 866-520-5499 (M-F, 8-5 CDT). If a rep is not able to help, you may have better luck speaking with a floor supervisor. The Short Sale Department should be able to help clarify if the charges are warranted and why. Also, here is a Customer Service number: 800-283-7918.
As for Citi only approving two weeks to close, it sounds like they're just trying to apply pressure to the first lien holder to hurry up with their approval. I would think Citi would grant another extension, as they have nothing to lose by doing so. Lien holders in second position stand to not get anything if the first lien holder foreclosures.
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