Following the move of Chase Bank, the Treasury Department’s HAFA program and the FHA, CitiMortgage is now offering select borrowers an average of $12,000 for completing a short sale this year. That’s great news for homeowners with a Citi first mortgage that may be facing a financial hardship. The goal is encourage homeowners that are having difficulty paying their mortgage to proactively short sale their home. If the homeowner is in the select group for this program, at the conclusion of a successful short sale, Citi authorizes the closing attorney to pay the borrower.
“Incentives will be offered to customers experiencing financial hardship who need funds to proceed with the short sale,” a Citi spokesman said. “The amount, which is agreed upon up front, varies according to the borrower’s individual circumstances and loan characteristics. It is disbursed to the homeowner when the sale is completed.”
For more on this visit housingwire.com
Citi’s program is one in a long-line of programs that are rewarding borrowers with complying with a short sale. The original was started by the FHA 20 years ago and is still in effect today. That program, the Preforeclosure Sale Program, allows borrowers to receive up to $1000 at closing for completing the short sale. The Treasury’s HAFA program offers a $3,000 payout to borrowers completing a short sale. Bank of America’s Cooperative Short Sale program entitles homeowners to a $2,500 payout at closing. Chase Bank was the first to offer a 5-digit payout to struggling borrowers and now Citi is following. I anticipate that this will become the standard as short sales are a means for the lender to save money over foreclosure.
I just finish short sale (closing date was May 31, 2011) for my client with Citimortgage. From the beginning of the process of short sale, Citimotgage have not or did not mention any offering to select borrowers $12000 after Short Sale.. I’m sick to my stomach when I saw this page in the internet. Is there any one can give me answer how I can still help my client to be able get some money from Citimortgage.
All answer will be appreciated. Thanks< Orchid47
Unfortunately, there’s nothing you can do now to get money for your client. It is offered to a select group of delinquent clients and I’m really not sure what the criteria is for choosing who gets money and who doesn’t. For your next Citi client, I would recommend reaching out to Citi early on and inquiring as to if your client qualifies.
hello. own a home in brevard nc. its currently on the market due to court order and the potential buyers banks appraisal came in short at 144,000. Mortgage with Citi is $165000. Current contract is 177000.How can i find out how much Citi will actually accept so I know the sale to this buyer or any other buyer will truly be a short sale? Do i have to start the short sale process first? Thanks
Well, the home not appraising isn’t necessarily reason enough for a short sale but the court-order might be. You will need to reach out to Citi’s short sale department to figure out if you qualify for a short sale. Prepare your Buyer that it may take 90-120 days depending on your loan type. They will sell the home for a price that they determine is fair market value by either BPO or appraisal. In your area, if your agent isn’t experienced with Short Sales, call the Wilde Law Firm.