Today's Mission: To prove to Citi short sale negotiator that market values have declined in my area.
Scenario: House with short sale offer for $225,000.
First Mortgage: Saxon - $258,000
Second Mortgage: Citi - $80,000
What Citi Negotiator Says: "How could value be so low?"
Wendy: "The market"
Citi: "Hmmph... I don't believe that market c*&p. I'll do my research"
Wendy: "There is a six year inventory of houses in the market area"
Citi: "We're not just taking $1000 or $3000 offer. I'll just let it go to foreclosure. I'll make this short and sweet. We'll just walk away and the first won't be able to accept the short sale. Get me the hardship letter and HUD and I'll get back to you. That's why I got into this business, because I am experienced." (true rendition)
Wendy, should you choose to accept this mission, and educate a Citi negotiator, you may save a man from foreclosure.
Mission accepted.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
SHORT SALE and PRE-FORECLOSURE SOLUTIONS. Serving the Emerald Coast of Florida: Destin, Fort Walton Beach, Santa Rosa Beach, Niceville, Navarre and vicinity. Call 1-877-487-9639 or (850) 650-7883.
Short Sale Information go to www.ShortSaleForeclosureHelp.com or www.ShortSales-EmeraldCoast.com
Search all Emerald Coast listings at www.RulnickRealty.com
Wendy, I am so glad this post came up. I called Citi yesterday too. It is the EXACT opposite situtation. They are the first lean holder. They will only lose about 10K, but the 2nd will lose 70K.
Wonder how they will feel when the shoe is on the opposite foot.
Ugggh, let me know what happens. At least they mailed me the short sale package the 2nd would not. Told me to write the hardship letter.
Wendy, I am so glad this post came up. I called Citi yesterday too. It is the EXACT opposite situtation. They are the first lean holder. They will only lose about 10K, but the 2nd will lose 70K.
Wonder how they will feel when the shoe is on the opposite foot.
Ugggh, let me know what happens. At least they mailed me the short sale package the 2nd would not. Told me to write the hardship letter.
Hey Wendy,
Help me out here, if it goes to foreclosure and is not bought at the court house steps, and the 1st has to take it back for the customary $100 dollars, what does the second get then?
Missy- I've had Citi as the first, too, they seem better as first!
Dwayne- I completely agree. Attitude doesn't mix when you're dealing with something so serious.
Jim- I think they'd go after a deficiency judgment. Doesn't make much sense to he either!
Mark- Thank you for the support! You are hopefully right- posturing! I faxed her 21 pages with "Quick Facts" about my market and a quick CMA. That was two days ago.... Wendy
Yeah Wendy that's Citi for you. Most of the people are transfered from collections that were just given a brief class and then sent out. Are you at NOD yet?
Wendy, Citi is going through a lot of pain in this market. I have been told that they own as much as 60% of all 2nd mortgages in the country. I have not proven that, but based on my experience, we have closed a ton of loans with them. I was dealing with an issue in december where they had the 2nd mortgage on a house that the 1st mortgage holder had in foreclosure. There was a contract on the house for over a month, when in the middle of negotiation, they sent the 2nd mortgage to collections (before foreclosure, and before filing foreclosure). This was so unprecedented, that I had to pick up my jaw from the floor. They then proceeded to allow the home to go into foreclosure with the first mortgage. The 2nd mortgage goes away with the only recourse being a deficiency judgment. This all happened about 10 days before they announced their record breaking 16 Billion dollar 4th quarter loss, and consequent 10 billion bailout from the Saudis. They could have gotten $4000 in the sale, instead they elected for nothing. The home owner will file for BK leaving them with nothing, and the losses keep snowballing.
Don't let it get you down, they have a job to do, and based on corporate policy from one day to the next, it may not even be rational what they are doing.
I did a few short sales when I first got into the business in 2000 here in Seattle. Getting approval was a whole lot easier then than it is now. I just got done with two of them, one a VA loan through Wells Fargo and the other with Countrywide and they hold both the first and second.
In my view, the reason closing short sales are so difficult right now is because the workout departments are just flooded with files and it just keeps getting worse. In both of my transactions they switched negotiators on me and that alone cost 2-3 weeks. I think that the negotiators only have time to do what they have to on the file and they are not going to read our detailed analysis of the market, absorbtion rates, etc.
I sent Countrywide the last email and told the gal that she was going to lose the buyer on the deal if they didn't get the approval by the 31st. Shw replied and said she couldn't guarantee it. I never replied--I had clearly but the responsibilty in her court. The buyer has been waiting almost 3 months! Guess what--4pm on the 31st she calls me and says she got the approval!
Hi Wendy. What is Quick Facts? Is that a program or website that you can subscribe to? thanks.
Tracy: "Quick facts" is a term I use to describe a short, succinct market narrative I may send to the lender to prove price.