Citibank Mortgage Short Sales – What You Need To know

A short sale is almost always a frustrating experience. It can leave you disillusioned and negative about financial institutions in general. Here are some tips to help you avoid that when you short sell through Citibank Mortgage. (see Citibank CD Rates)

Getting listed

This is one of the first things that need to be done before a short sale can proceed. For the listing to happen, certain documents will need to be provided to Citibank Mortgage. The previous two years’ tax returns will be needed. These also need to have W-2s as well as tax schedules. You will need to provide payslips of the previous 2 months. The previous 2 months’ bank statements for all accounts as well as retirement accounts will need to be furnished. Mortgage coupons for existing payments will also need to be provided. You will also need to furnish Citibank Mortgage with copies of the deed of trust and the mortgage note in original.

Why are these documents needed?

The main reason why these documents are needed is so that you can present a case to Citibank Mortgage. This will cite reasons why a short sale is desperately needed and the case will be sent to the concerned department in Citibank Mortgage. However, this is applicable only when a legitimate buying offer has been made from a buyer.

How to be eligible?

If you are wondering if you can quality for a short sale with Citibank Mortgage then here is a primer. You need to have missed the mortgage payment by atleast one month. You also need to have a buyer at hand who can afford to make the payment and is willing to buy the house as well. If you are also not able to consolidate your existing debts to pay off the mortgage only then are you actually eligible for a short sale. In situations where your income sources have changed or your pay scales have reduced you could qualify for a short sale.

If your savings have completely depleted leaving you with no money to pay off the mortgage then also you qualify. Thus the documents listed above will enable you to successfully present a clear case to Citibank Mortgage. Only then will Citibank Mortgage agree for a short sale. While the results are not guaranteed at least it makes the case a lot in your favor.

It does affect your credit

If you thought foreclosure was worse than short selling in terms of credit history and score, think again! The real fact is that short selling too can adversely affect your credit score. Your average score could reduce by as much as 80 or 100 which is no small amount. The credit report will show the short sale as ‘pre-foreclosure which is in a redemption status’ to be exact.

What I Did In My Short Sale

What I did (hiring a real estate agent with short sale experience) worked for my situation. It may not for your short sale, but I found it the best option. Working with a real estate agent you at least can get a background on the person, and if they work for a larger brokerage you know they have resources to help you. Think short sales are hard for you? They are equally as hard on the real estate agent! Getting a short sale deal done (especially right now with the overwhelmed lenders like Countrywide) takes alot of work. I do think its the best option vs. foreclosure though. You can also read my 7 steps to a successful short sale guide.

You Need An Experienced Short Sale Agent!

From my blog here I’ve developed an extensive network of real estate agents that have short sale experience. If you’d like a referral, fill out the form below and I’ll have someone available in your area to help with your short sale ASAP.

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  • Susan

    I wanted to bring to your attention the following situations. I have been trying to purchase a condo in Orange County for over a year. I’m qualified for a FHA loan. Currently I’ve offered to buy a short sale where there are two loans. One with Wells Fargo and one with Citi Bank. Citi Bank has fought being paid a partial payment of 3k which Wells Fargo has approved to give them. Citi Bank did not want to accept this amount and wanted 8-10k on the loan. Citi Bank would rather foreclose on the home and loose all monies rather than compromise on the 3k disbursement.

    This is ridiculous in this economy. I wanted to make you aware of these types of situations. I’ve also contacted CNN, and The Whitehouse about this issue and plan to contact the Orange County Register along with the LA Times.

    Frustrated homebuyer