Citimortgage Short Sale – Citi Short Sale
Our experience comes from completing 100’s of short sales and one of our “favorite” (if you can call it a favorite, we don’t like the short sale process) is Citi Short Sales. Careful when you visit their website, they suggest a Deed-in-lieu, which for a Citi Short Sale in GA, is the same as a foreclosure, just minus the legal process.
Citimortgage Short Sales are some of the most simple (not easy) short sales to complete. Citi short sale department is very proactive about contacting the agents and the sellers about completing the short sale. As one of the largest banks in the US, Citi sets an example for others to follow. Citi Short Sales and Wells Fargo Short Sales are the “easiest”
Citi has their own forms and processes, but none of them are that much different than the standard. Just contact us and we can e-mail you out the Citi Short Sale package. Keep in mind that we’re doing things from a Georgia perspective.
In some cases, the Jarvis Team of Atlanta can get the short sale approved in 30 days when it’s a citimortgage short sale. Citimortgage is very predictable however, in some instances, such as ones involving a MI (mortgage insurance) company, there can be delays. It’s safe to use the 90 day rule on Citimortgage short sales. However, unlike other banks, if you’re doing a Citi Short Sale in GA then 90 days is an over-estimate and not wishful thinking.
Although I wish that banks would create Certified Short Sale Specialists, unfortunately there is no such thing. So there are no official Citi Short Sale agents, but we’ve closed enough to qualify for that title!
Contact Numbers for Citimortgage Short Sale Department
CITI Short Sale Information:
General Info: 866-704-8050
Home Equity Dept: 800-685-0935 & 800-283-7918
Short Sale Dept: 866-713-4785
2nd lien Short Sale Dept: 866-520-5499
Short Sale Dept: 800-695-0384
CITI HAFA Short Sale Options (Home Affordable Foreclosure Alternative)
- The mortgage loan is a first lien mortgage originated on or before January 1, 2009.
- For Short Sale and Deed in Lieu – The mortgage is delinquent (> 60 days past due) or default is reasonably foreseeable (imminent default). – Meaning it’s clear you won’t make your payments.
- Loans currently in Foreclosure and Bankruptcy are eligible.
- The current unpaid principal balance of the loan is equal to or less than:
- 1 Unit-$729,750 (this is luxury real estate in some areas)
- The borrower has documented a financial hardship, evidenced by a signed Hardship Affidavit or Request for Mortgage Assistance (RMA), in which the borrower has expressed that he or she does not have sufficient liquid assets to make the monthly mortgage payment.
- Foreclosure Sale Date:
- Loans in foreclosure that have a sale date set which is < 60 days from the date that the borrower requests consideration for HAFA are ineligible. This means that if you have to work hard to get the foreclosure postponed if you have a property in Georgia.
- Once a foreclosure sale has occurred the loan is no longer eligible. Essentially, you no longer own it.
- Eligible borrowers may submit their request until December 23, 2016. (They are still considering it as of 2017
- It is the responsibility of the borrower to deliver clear marketable title to the purchaser or investor and to work with the listing broker, settlement agent and/or lien holders to clear title impediments. – Meaning – it’s YOUR responsibility to make sure there’s no other liens on your proeperty. If you have a 2nd mortgage you will have to deal with them too.
- CitiMortgage is permitted to negotiate with subordinate lien holders on behalf of the borrower. – Meaning: Citi will negotiate with the other people you owe money to on the home…
- What Citi will do with those investors:
On behalf of the investor, CitiMortgage will authorize the settlement agent to allocate up to an aggregate of $12,000 of the gross sale proceeds as payment(s) to subordinate mortgage/lien holder(s) secured by a mortgage on the subject property in exchange for a lien release and full release of borrower liability. Each lienholder may be paid six percent (6%) of the unpaid principal balance of their loan, until the $12,000 aggregate cap is reached. Payments will be made at closing from the gross sale proceeds and must be reflected on the Closing Disclosure.Citi
- What Citi will do with those investors:
- CitiMortgage will authorize the settlement agent to allow any portion of the gross proceeds to be used as payment(s) to subordinate non-mortgage lien holders in exchange for a lien release and full release of borrower liability. Meaning: Citi will only pay your 2nd lien if the lien holder will release their lien.
- For loans that have mortgage insurance coverage, the transaction must comply with CitiMortgage’s agreement with the mortgage insurer; otherwise, CitiMortgage must submit the transaction to the mortgage insurer and obtain approval for HAFA. A mortgage loan does not qualify for HAFA unless the mortgage insurer waives any right to collect additional sums (cash contribution or a promissory note) from the
- Each private investor makes a decision as to whether or not they will participate in HAFA. When CitiMortgage recommends a HAFA short sale on a loan serviced on behalf of a private investor, we seek such investor’s approval on a case-by-case basis. Meaning: Citi short sales that are done with private investors can be done however the investor wants.
Servicemember Civil Relief Act (SCRA)
Eligible military service members who qualify for SCRA benefits and are eligible for short sale will receive a short sale agreement containing minimum net proceeds that will be accepted for the short sale transaction. This is dependent upon receipt of the listing agreement and all required 3rd party approvals.
Termination AKA “Citi will cancel your short sale if…”
CitiMortgage may terminate the terms of the pre-approval as a result of any of the following events:
- The borrower’s financial situation improves significantly, the borrower qualifies for a modification, or the borrower brings the account current or pays the mortgage in full (if you sell the home for more than it’s worth).
- The borrower or other occupant(s), or the listing broker fails to act in good faith in listing, marketing and/or closing the sale. Working with unreputatable investors.
- There is evidence of fraud or misrepresentation.
- The borrower files for bankruptcy and the Bankruptcy Court declines to approve a sale under the terms of the Short Sale Notice (SSN). Bankruptcy will stop your citi short sale!
- Litigation is initiated or threatened that could affect title to the property or interfere with a valid conveyance. (ex. A disgruntled contractor places a workman’s lien on your property).
- Cit Pre-approved Short Sale Notice (SSN)
- Hardship Affidavit or Request for Modification and Affidavit (RMA)
- Evidence of residency: (yes you need to be able to prove you “live” there) CitiMortgage may request one or more the following to confirm principal residence: tax return, tax bill, utility bill, valid passport, driver’s license, Medicare card, permanent resident card or armed forces identification.
- An executed Dodd-Frank Certification (just a generic form) from each borrower and stating they have not been convicted of any one of the following, in connection with a mortgage or real estate transaction, within the last 10 years: felony larceny, theft, fraud or forgery, money laundering or tax evasion
- Subordinate lien documentation (a payoff quote from any subordinate lien holder including written commitment from the subordinate lien holder that it will release the borrower from all claims and liability relating to the subordinate lien in exchange for receiving the agreed
upon payoff amount).
- Form of income verification, if less than 60 days past due (please see Imminent Default section below)
- HAFA Affidavit: Both the seller (borrower) and purchaser in a HAFA short sale transaction (notice that this pre-supposes that there is a buyer!) are required to execute a HAFA affidavit prior to closing that certifies, among other attestations, that the sale represents an arms-length transaction and that no money is being given or received that is not reflected on the Closing Disclosure.
- The purchase contract must include a clause stating that the sale must represent an arm’s length transaction, and that the purchaser may not sell the property within 30 calendar days of closing and for the period between 31 and 90 calendar days of the
closing, the purchaser is prohibited from selling the property for a gross sales price greater than 120% of the HAFA short sale price.
- Buyer’s documentation of funds or buyer’s pre-approval or commitment letter on letterhead from a lender
HAFA VALUATIONS Establishing Property Value
CitiMortgage will assess the current value of the property using a compliant evaluation. The valuation will be independent of the borrower and any other parties to the transaction. CitiMortgage will not require the borrower to pay in advance for the valuation, but will add the cost to the outstanding debt in accordance with the borrower’s mortgage documents and applicable law in the event the short sale or DIL is not completed.
Meaning: Citi will hire a real estate agent for $50 to figure out the value. It’s going to be less accurate than Zillow.
HAFA does allow a borrower to request an appraisal to be completed on their property. CitiMortgage may add the cost of the appraisal to the outstanding debt of their mortgage in accordance with the borrower’s mortgage documents and applicable law.
HAFA Timelines Per Citimortgage
CitiMortgage will consider possible HAMP eligible borrowers for HAFA within 30 calendar days of the date the borrower:
- Does not qualify for a Trial Period Plan;
- Does not successfully complete a Trial Period Plan;
- Is delinquent on a HAMP modification by missing at least two consecutive payments;
- Within 10 business days following receipt of a request for a short sale , CitiMortgage will send written confirmation to the borrower acknowledging the request. If eligible, an SSN is sent within 30 calendar days from the date of receipt of a request for consideration.
- When a HAFA short sale or DIL is not available, CitiMortgage will communicate this decision in writing to the borrower within 10 business days after the determination that the HAFA short sale or DIL is not available.
- If eligible, the property is to be listed for sale for a period of not less than 120 days from the date of the SSN. The term of the SSN may be extended at the discretion of CitiMortgage, up to a total term of 12 months.
- Within 5 business days of receipt of an executed sales contract where the borrower has not previously received the servicer’s pre-approval of a HAFA short sale, CitiMortgage will send to the borrower written acknowledgement of the request for short sale approval using the
Acknowledgment of Request for Short Sale (ARSS).
- No later than 30 calendar days from the date of receipt from the borrower of an executed sales contract and a signed Hardship Affidavit or RMA, CitiMortgage will communicate approval or disapproval of the sale or provide a counter-offer.
Borrower Relocation Incentive For Citi Short Sales
HAFA provides for a $10,000 incentive payment to the borrower occupant or non-owner occupant to assist with relocation expenses for transactions that are approved or preapproved on or before December 30, 2016 and that close on or before December 1, 2017.
The borrower may use the relocation incentive payment to pay for transaction costs that the borrower has instructed the settlement agent, in writing, to pay on the borrower’s behalf, such as the cost of legal representation in connection with representation of the borrower in
the short sale or DIL, overdue utility bills on the property or minor repairs made as a result of being identified during a property inspection.
The Closing Disclosure must show the full $10,000 relocation incentive as a credit to the borrower and show any authorized transaction costs paid out of the relocation incentive in accordance with the foregoing guidance as charges to the borrower.
HAFA SHORT SALE SPECIFIC CONTACT INFORMATION
- For HAFA program assessment, eligibility or escalation: 1-866-272-4749
- For general HAFA questions and transaction status: 1-866-520-5499
CITI SHORT SALE THIRD PARTY VENDORS
CitiMortgage does not engage third parties to handle their short sales. You’ll have to find an agent that knows how to do a citi short sale.