I took a listing with Citi Financial last November 2011. Thinking Citi one loan no problem. I though Seterus was bad but Citi Financial is taking the cake on this one.

John Florez who is the Center Manager for Citi Financial in Phoenix has been harassing the homeowners to the point where they called me to see what options they had due to them having to relocate out of state for a job. I advised them about doing a Short Sale and after talking with their attorney and accountant they decided to do a short sale.

We put the house on the market and received an offer less than 10 days. I sent in all the paper work and called Citi to make sure they had everything they needed. Jennifer who works in the offer advised they had everything and that John Florez would call if anything additional was needed.

John called the next day and told me that he had a problem with the HUD. He said they will only approve 5%. I told John I would get the HUD revised. He also starting asking me about getting the homeowner to make 60% reduced payments for 5 months, and then after all 5 of these payments were made he would at that time approve the short sale."WHAT!" I had to repeat what he just said back to him to make sure I heard that right.

He said that after they make payments for 5 months at 60% reduction he would approve the file. I told him out of all the short sales I have done I have never heard of something like this.Why would you make the buyers wait 5 months before approving the short sale. John said this is how it's going to be if you want to make a commission.

Yes at this point was I ever so frustrated. I talked with my broker to see what he could do, but it seemed as if John does not answer to anyone, no boss.. I called John back and advised him I would see what I could do but could he order the BPO to make sure the offer is what they needed to net.

A couple days later John did order the BPO and then called me back saying the BPO is in line with what they need to net now he just needs to get payment from the homeowners, he asked if I could make them call him and give him payment. I told him I would give them the information.

I talked with the homeowner and advised them that I have never dealt with someone like this, someone so arrogant. The homeowners laughed and said now you know what we were dealing with and why we called you. I advised them to get the advise of an attorny and also advised them to make a complaint to the State Attorney General along with State Banking Commission.

The homeowner did make a complaint and were advised it would take up to six weeks to get an answer back. Because the homeowner refused to make payments with John Florez he called and left a VM for me saying the Short Sale is denied. I called John back and said that's fine can you issue a denial letter so I can cancel the contract with the buyers. He said he already sent it and did not have a copy in his file to send me and to ask the homeowners.

The homeowners never got the letter and John didn't have a copy in his file. John said the file has been turned over to their foreclosure department.

It's now January and I advised the buyers agent what was going on. The buyer decided to cancel their contract and I canceled the listing and advised the sellers to keep me updated when they get a response from the Arizona Attorney Generals Office.

They received a response in March 2012 and was asked to provide any additional information they had and also asked if they ever received the denial letter. They responded and the first week of April they received a call from from Citi Financial about the great new Short Sale program where now if they get an offer they don't have to make the 5 payments and at closing they would get 10% back from Citi.

I told the homeowners this sounds like a scam, they received a letter the next day telling them Citi would like them to short sale their home and to have the agent provide a copy of the listing contract, hardship letter, HUD1 and a 3rd party authorization form.

I took the listing and this time I took it at 5% knowing what had happened last time. I received an offer in less than 12hrs and submitted the purchase contract along with a new HUD to John Florez at Citi. He called me and said well since the buyers agent is with the same broker your going to have to reduce your commission to 4%. He laughed and then hung up the phone.

I'm very patient, and I understand that a short sale is an option and not a right, I just don't get how the John Florez keeps playing games with the homeowners and me as the agent. I'm so sick of these banks playing these crazy games. 

Citi you are now on my bad list of banks not to take short sales with along with Seterus.

For all of you agents thinking about taking a short sale with Citi I highly advise against it...

James Moyer

Arizona Real Estate Market