Citi Mortgage Client got a recording saying short sale approved?!!!

Hey guys! Help me! My client just got a call saying her Homeowner Foreclosure Alternative has been approved after punching in a message code and said they are sending the package to her in a few days. Is this a short sale approval package? I thought this comes in an email format and I have had excellent communication with the lender and Fannie Mae agent, yes I said Fannie Mae agent personally called and emailed me several times. I was told today that PMI has approved the short sale and the decision was now in the 2nd lien holders hand. So, guys what you do think? My client is beyond excited. Has anyone ever had this happen to them before. This is two Citi Bank loans and Fannie Mae investor owned. Thanks for your help! Kelly

Replies

Joshua Gayman September 11, 2011 at 7:32pm

Kelly,

Based on what you are saying, it looks like your seller is approved for the HAFA program, but you will still need to finish up the negotiatons(settle out the NET that your first and second loans are getting) and get the approval letters. Once you get those approval letters, you should be set on the relocation money and no deficiency, assuming they don't say it has to come out of HAFA for some odd reason that they may try and make up.

Would love to talk more and clear up some details.
Kimberley Kelly September 11, 2011 at 1:02am

No idea what's going on here. Sounds like HAFA approval..over the phone??
- Kelly Magreevy > Kimberley Kelly September 11, 2011 at 2:53am
  
  Contacted the bank on Saturday and they said a letter went out to my client with the details. The short sale has been approved and the jr. lien has been RECOMMENDED for approval. Not worried about that one as it is a very low amount (just over $6k). But seems like I should have been told via e-mail. I have done quite a bit of short sales and I have always been the one to get a formal e-mail. Plus, it is Fannie Mae investor. So I guess this is the new Fannie Mae HAFA approval. I guess I really need to get HAFA certified. I don't even know if my client is getting the $3k relocation etc. So, anyone out there HAFA certified that can give me guidance. We never touched on this program in my CDPE class. I feel I am missing out on an important piece of these short sales. Thoughts?
  - Eric Mieles > Kelly Magreevy September 11, 2011 at 11:12am
    
    kelly, what would you like to know about HAFA? There are some docs you will need if indeed you are moving for a HAFA ss.
    
    Dood Frank
    
    4506T
    
    RMA
    
    Ultility Bill
Cameron Novak September 10, 2011 at 8:56am

Many transactions with Citi, but never a recorded message to my client.

Good luck with the outcome!
Kristy Hamilton September 9, 2011 at 4:50pm

HAFA approval is not the same as final, short sale approval. HAFA approval IS good! YES! You should have a negotiator and should be able to call and get the name of the negotiator. I was told that CitiMortgage initiated a new process where the seller is to call them and complete income and expense info over the phone. Then, after that is complete, they are supposed to be able to provide the name of the negotiator. But, it sounds like you are farther into the process than that. Is the 2nd a HELOC? Are you not dealing with the same negotiator for both loans with Citi? What they should be sending is a "Making Homes Affordable" document, Dodd Frank Certification, 4506-EZ. These are the standard HAFA documents that are usually requested. It sounds like you are on the right track to a final, short sale approval within a short amount of time. No, I have not had this happen to me before. But, that is the delight with short sales, each one is "like a box of chocolates!"
- Kelly Magreevy > Kristy Hamilton September 9, 2011 at 5:25pm
  
  Hi Kristy! But it isn't a HAFA short sale. It is a Fannie Mae property. Is there something that I am missing her. I am totally confused. I have the negotiator's name, I have the Fannie Mae agent's name and number he gave me and he has been GREAT! And it was just given approval from the mortgage insurance company TODAY. It is not a HELOC just the 20% down for the second loan to avoid PMI payment by the seller. So, my seller gets this recorded call saying her Homeowners Affordable Foreclosures Alternatives has been approved after entering a phone number and digit. Could this be a mistake? Please let me know what you think. And yes I am dealing with both loans through the negotiator.