Real Estate Blog - Citi Rep Says "The Market" Didn't Cause Price Decline

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Citi Rep Says "The Market" Didn't Cause Price Decline

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

Posted by Wendy Rulnick "Its Wendy!" Destin Short Sales on 02/05/2008 09:26 AM

Comments (17)

destin short sales, citi, santa rosa beach short sales, emerald coast short sales, citibank short sale, citi short sales

Originally posted at: Destin Short Sales- Emerald Coast Florida Real Estate: Citi Rep Says "The Market" Didn't Cause Price Decline

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17 Comments on Citi Rep Says "The Market" Didn't Cause Price Decline

FEB

2008

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.

It sounds like someone had a very bad day with that company. I think they all should stop with the attitude and help people out.

FEB

2008

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?

FEB

2008

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!

Wendy- pure posturing. They will not bend over at the first pass. Good luck. Don't take anything personal.

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?

Hi John, Lis Pendens was back in September! No sale date set yet. Hmmm... I can see her being transferred from collections! Scary. Wendy

Wendy- I just finalized a contract with a negotiator today that was beating me up on why should they take such a loss and I wasn't willing to help them by reducing my commission.The buyer gave a little, and the title company gave a little. Everyone felt like they won. The negotiator acts like they have an emotional stake, but they don't. They are just doing their job. It is good to let them know that you are aware of all the facts. Great job sending them a CMA. They really have no idea.

FEB

2008

Mark, Congrats on your sale on getting full commission! It is unbelievable all the different negotiator personalities. I would like to sit in one of those rooms and listen to them in person. I sent a market summary on another one yesterday, where the second was countering the first's offer, and it worked. Whew. Wendy

FEB

2008

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.

Steve, Thank you. I didn't know they held such a high percentage of seconds. That is really sad what happened to you and your clients! Guess what? Mine is in collections, too. I STILL have not heard back from the negotiator after sending her my 21 pages. I am waiting to hear from the first, Saxon, so I can ask them what they want to give Citi, instead of the other way around. I fear if I call Citi back without an answer from Saxon, they'll nix the whole deal. Wendy

FEB

2008

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!

FEB

2008

Dale, I agree, the negotiators have too many files. I still call and email at least every three days on each transaction, even if I usually don't get a response for two months. I find that they "forget" about you if you don't constantly buzz them! They might even have an answer or request sitting on their desk for you, but may not have gotten to it for another week.

JUL

2008

Hi Wendy. What is Quick Facts? Is that a program or website that you can subscribe to? thanks.

JUL

2008

Tracy: "Quick facts" is a term I use to describe a short, succinct market narrative I may send to the lender to prove price.

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