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Citibank Short Sale Process

28 Mar

One of the largest lenders with a high volume of short sales to process is Citibank. Like many of the large banks Citibank has made efforts to improve their short sale processes for more efficient timeframes and quicker short sale approvals. Also like most lenders, Citibank has a few steps in their process that are different from other lenders. It is important to be aware of these steps that differentiate one lender from another in order for the transaction to go as smoothly as possible in the shortest amount of time, creating the best experience possible for all parties involved.

Citibank requires their customer (the borrower on the loan) to contact them directly to initiate the short sale process. The borrower can call Citibank at 1-866-272-4749 Monday through Friday 8 AM to Midnight ET; Saturday and Sunday 8 AM to 8 PM ET, to notify the counselor they are listing the property for a possible short sale.

Citibank will request the following documentation to get started:

  • Loan information (balances of 2nd mortgages, automobile loan, or student loans, etc.)
  • Pay Stubs – Copies of 2 most recent pay stubs including year-to-date earnings
  • Bank Statements – Most recent personal checking, savings, money market, mutual fund, stock and bond statements.
  • Property Info – Current property tax and insurance statements
  • Homeowner’s Insurance – Policy Declarations page
  • *Self Employed? – If self employed provide a quarterly or year-to-date Profit & Loss Statement.

Citibank will require the borrower/homeowner to create an online profile on the Citibank website for submitting required docs and communication with Citimortgage.

Here are a few ways the Short Sale Specialist Realtor can be Proactive:

  • Evaluate whether the loan is Freddie or Fannie by going to the Fannie Freddie lookup sites.
    • For Freddie: https://ww3.freddiemac.com/corporate/
    • For Fannie: https://www.knowyouroptions.com/loanlookup
    • If the loan is Freddie or Fannie, have the borrower request consideration for the Standard Short Sale Program (which is the HAFA II program)
    • If the loan is not Fannie or Freddie have the borrower ask for the HAFA program. It is a good idea to educate the borrower about the HAFA program and the benefits available.
    • Assist the borrower in completing the short sale package so it is ready to go when the initiation call is made. The HUD-1 from the purchase of the property should be included in the short sale package for Citibank

Once Citibank receives the short sale package with the third party authorization letter they will begin communicating with the short sale specialist realtor. The short sale specialist realtor can then proceed through the short sale process to:

  • Secure a Purchase Contract
  • Obtain contract approval
  • Close the property and complete the short sale transaction

 

Click here for Citimortgage Resources including:

  • Citimortgage Process Step-by-Step form
  • Citimortgage Contact and Escalation Info
  • Important Website Links
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Posted by on March 28, 2013 in Uncategorized

 

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