Tips For Citibank Short Sale Sellers

"Citibank holds a large share of today’s distressed mortgages, and luckily, it’s one of the first major banks to take part in the government’s short sale and foreclosure prevention programs. The Citibank short sale process has been greatly improved over the past few months and has helped thousands of homeowners out of foreclosure. If you’re struggling to keep foreclosure at bay, a short sale Citibank deal may just be the solution for you. This article offers a few tips on getting approval.







Choose A Good Realtor.

Citibank short sale officials recommend working with an experienced realtor. This will not only help you sell your home faster, but also help you avoid common pitfalls in the short sale Citibank process. They’ll also help you do the math and present a viable proposal to the bank, as well as get your home seen by more potential buyers. Check local listings to see which realtors in your area have the most experience with short sales, or ask your friends and family to recommend one.

Check Your Home’s Value.

A Citibank short sale works best if your home has negative equity, meaning it’s worth less than what you owe on your mortgage. A comparative market analysis, provided by your realtor, can give you an idea of what your home is worth in today’s market. If you can still make profit out of the sale, short sale Citibank officials may recommend other ways to help, such as modifying your mortgage or refinancing to a lower-interest loan.

Explain Your Hardship.

The Citibank short sale department is known to be strict on hardship requirements. You must have a valid hardship to qualify for any mortgage workout. Common examples are medical emergencies, job loss, divorce, or death of a family member. The key is to prove that the situation was out of your control. You will need to explain this in a hardship letter and present supporting documents, such as medical bills or dismissal slips.

Do Your Research.

Many Citibank mortgages are co-owned by secondary lien holders, who will have to approve the short sale as well. You can find out who owns your loan by calling the bank directly or looking it up on the bank or insurer’s website. The more parties that have a stake on your mortgage, the longer the short sale Citibank process can be. Try to get in touch with the secondary lenders and keep a record of every exchange to avoid unnecessary delays."

Foreclosure, Short Sale, REO: What’s The Difference?

Distressed properties have been crowding real estate markets since the housing crash, and for many, this means a chance to snap up homes at below market value. First-time buyers, repeat buyers, and property investors have all benefited from this trend. But surprisingly few of them understand the basic differences between distressed homes. A foreclosure is different from a short sale, and both are different from bank-owned homes. This article discusses the types of distressed properties and why the difference matters to the buyer.


Foreclosures

A foreclosure is basically a home that a lender has seized because the borrower can no longer pay the mortgage dues. Lenders sell them off in a foreclosure auction, where it goes to the highest bidder. Foreclosure prices are usually low because the home has lost market value and lenders have already taken a loss from the borrower’s missed payments. It’s not uncommon for a home in foreclosure to sell for 40% below market prices. The catch is that foreclosed homes are sold as is, meaning the buyer cannot request repairs or inspections as with a regular sale.
Real estate-owned (REO)

An REO home is a home that has gone into foreclosure but did not get any bids. Lenders then try to sell the home off themselves, often using conventional methods such as MLS listings and realtor services. Usually, they’ll fix up the home and do a title search so that it’s more attractive to buyers. Because of this, REO homes may cost more than foreclosed properties—typically no more than 20% below market value. Unlike in a short sale, buyers do not get a second chance on an offer, as banks get multiple offers and simply go with the highest. REO homes are also sold on as “as is” basis.

Short sale

In a short sale, the buyer sells the home for less than the mortgage they owe and uses the proceeds to settle the loan. Lenders either forgive the difference or claim the deficiency afterwards. This typically happens when the buyer’s mortgage is upside down, or their debt on the home is greater than its current value. Because of this, short sale prices are at most equal to market value; the bank usually decides whether or not to accept less. Short sale homes can be listed the same way as conventional homes, except that offers have to be approved by the lender. This is usually noted somewhere in the home listing so that potential buyers can tell it’s a short sale.