Citi Short Sale Update
After a total of 94 days we finally closed on this property.
My buyers got quite the deal, even though it took a total of 94 days to close the property (18 days about were for the financing, the rest was mitigation wait).
CITI took something like a $75,000 loss writedown on the short sale, which is huge considering the property mortgage was something along the lines of $250,000.
The buyers are now happy, there was a total of a month time span from which they closed on thier former home and had to live in a transition state to the new home.
Let this serve you a warning – SHORT SALES CAN BE VERY LONG AND RISKY! Of course, the reward was a great house for my buyers (A 5br 2.5ba home on 2 acres, private golf course and such for around $200,000).
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That’s great that it finally closed. We’re still waiting on our short sale offer to get approved by the lender.
That is good to know that Citi took such a loss! My clients, who are the sellers and I AND more than 6 potenital buyers have been trying to get through this mire for over 7 months.
We had an offer that was supposedly approved and then voila! the bank (citi mortgage) supposedly sold the loan to Citi Financial, who told me they could not transfer files or information back and forth because they were two separate entities.
So we had to resubmit all the short sale application information. Start the BPO (bank appraisal) all over again. Relist the house, etc. etc.
So now, 7 months later and about 6 different contact names later, I have three offers that have been sitting around waiting to hear something. Citi Financial switches my representative several times. I wait several days to get replies sometimes. Well, they tell me they sold it to Freddie Mac or Fannie Mae and all is good to go. I call the buyers, sellers, agents, . . . A few days later I get a call saying they just found out the seller’s loan was not insured and now FM is kicking it back to Citi who “never has and never will take a $60,000 loss on a $450,000 loan”. GET THIS – I call my legal dept at our real estate office to see how to handle notifying everyone of the umpteenth change. I prepare myself to ONCE again tell several people another story told to me by Citi, when I get a call from Citi Financial Short Sale Dept. telling me guess what “I talked to my manager and we are going to get it through after all”. Well that was two weeks ago. Meantime I got the “Managers” phone number after begging, threatening and pleading. I call her and she RUDELY says “Hello”. I said who is this and she said “who is this”. I give her my name and tell her why I am calling and she says – “WHY ARE YOU CALLING ME, that’s Elsa’s job”! I tell her Elsa send me an email tell me to call her “Stacey”. She launches off into this tyrade telling me that I give out incorrect information stating that my sellers had a loan with them, when they “HAVE NEVER” had any connection. That it was always a Freddie Mac loan and that they never owned the loan. Well, I say, I have acct#’s, case #’s, I have sent offers, and talked to several people there, as well as sent a 38 page document to get qualified for a short sale for 7 months, so I think they own the loan or at least have been working on it.
She rudely says ” WHAT’S YOUR NAME? What’s your number?” And I never hear back from her again!
I send information to her counter part, Elsa, telling her my seller says he is sure he was paying for mortgage insurance, but that he moved and all his papers are in a storage room under boxes of stuff. So I receive this information by mistake from a title company of one of the SIX offers I have had to turn away THAT THOUGHT THEY WERE GETTING THIS HOUSE. And in it it lists some of the various mortgage companies – Starts with Wells Fargo, goes to Ameriquest and NEVER states Citi Financial or Citi Mortgage ANYWHERE!
Meanwhile I have spent hundreds of thousands of hours and dollars trying to keep up the property and the pool. Talking to potential buyers and agents, showing the house. processing offers. Buyers and agents with offers in are HOUNDING ME DAY AND NIGHT!
The seller’s were good people who fell on hard times. They tried relentlessly with me, to make this right. Almost EIGHT MONTHS OF THIS STuff. The sellers were told to VACATE the house back in March and that they could do a Deed in Lieu and move on with their lives. They move out, then the loan gets transfered. Suddenly they can not do a Deed in Lieu. They have received foreclosure notices, then the foreclosure is on hold. Then they are going to accept these offers I sent them WITH Preliminary Hud’s drawn up by title companies of people who think they are going to buy this house.
Something has to be done about this. How can they string us along for so long. Changing who we speak to. Changing their minds about accepting offers. Changing the Price! Oh Yeah I received a call a couple months ago telling me to lower the price of the house and get them some new offers. I do and now they tell me “we cannot do this their was no insurance on the loan”.
Now I get an email, just now, tell the seller to send us the name of the insurance company he was paying on his loan. WHHHAAAAAAAAT!
The seller is sick of dealing with it and would rather have a foreclosure on their records they go ONE MORE DAY dealing with this insanity. ME – I have had the listing for almost two years, I finally have a list of interested parties a mile long but by now I have told several realtors and prospective buyers a long string of unbelieveable garbage because I believed what the people at Citi told me and passed the information along only to find out all of it would change over and over and over and over again.
What would you do? GIVE UP – cancell the listing ? Call everyone with an offer on it to run like HELL! WHat to do . . .