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You Won't Believe What Happened At Citi Mortgage Today...

By
Real Estate Agent with RE/MAX Compass 0524642

I have a short sale listing, one where a buyers agent has brought me a contract, the lender is Citi Mortgage. The buyer has also elected to get a loan with Citi Mortgage. No big deal, right? You would think that this might make things easier, but it hasn't.

When the buyer went to get pre-approved with Citi he was greeted with this email by the loan officer at Citi Mortgage and I cut & paste:

--->"Stay far away from this property! Don't go near this property! Do not do this.  Find another property."<------

I immediately emailed the rogue loan officer with Citi Mortgage. After this I called "customer care"

After 12 phone calls, disconnects, holds, transfers and misdirected extensions I get a hold of a voicemail, one Arnold Simon with loans in Texas.

I don't have the results yet, but will GLADLY come back with another blog to update you guys on this unbelievable, cannibalistic approach within Citi Mortgage. I am floored, shocked and very, very angry.  It's this counterproductive nonsense that adds to the  mountain of issues within our short sale industry.

I can't wait to hear back from the Supervisor for this individual. I feel horrible for my seller and even the buyer!

***** UPDATE *********

I finally heard back from a Supervisor, Arnold Simon. Due to "lender required repairs" Citi Mortgage refused to work the loan. The way it was conveyed however was anything but professional or acceptable according to mgmt.

The loan officer eventually retracted his statement, apologized and said he could have said what he said more constructively. Ultimately his words were ... "farmers don't like to eat their own cattle." In other words, Citi doesn't like to finance it's own short sales! Pretty interesting huh? Nice to know that this was an isolated incident that was quickly addressed. I guess getting a loan from the same bank that's conducting the short sale is not ideal, also a claim by the loan officer.

Posted by
Greg Nino
Realtor
RE/MAX Compass 
Direct & Text 7 days a wk: 832-298-8555 
 
 
Realtor since 2004
Mediator & Arbitrator for the TX Assoc. of Realtors
Member of the Professional Standards Committee for the TX Assoc. of Realtors
Arbitrator for the Comptroller's office for the State of TX for Arbitration of Property Tax Values

 Member of the RE/MAX Hall of Fame & Platinum Club

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

Comments (37)

Marcy Eastham
Town & Country Realty Corvallis Oregon - Corvallis, OR

Hi Greg,

I have to agree -- let us know what happened!  Did you post this to the public blog?  I don't see a "member's only" tag. That could generate some action from Citi!

Aug 25, 2009 08:46 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

Marcy - Yes this is a PUBLIC blog. I'm blogging about about my experience, nothing more, just facts.

 

Aug 25, 2009 09:37 AM
Michael Johnson
Carolina One Real Estate - Goose Creek, SC
Metro Charleston SC

Nothing surprises me anymore when it comes to short sales.  Hope it works out for your client in the end.

Aug 25, 2009 11:12 AM
Sheila Moran
RE/MAX Access (Garden Ridge, San Antonio, New Braunfels) - New Braunfels, TX
SanAntonioSheila.com, RE/MAX Access, 210-32

Greg,

 

You so said it

It's this counterproductive nonsense that adds to the  mountain of issues within our short sale industry.

Brother!

Aug 25, 2009 01:41 PM
Craig Rutman
Helping people in transition - Cary, NC
Raleigh, Cary, Apex area Realtor

That, my friend, must have been incredibly frustrating for you.

Citi Mortgage should not only fire that rep., they should go out of their way to help out a potential client.

They've already lost money on that property. You would think they would want to recoup some of it with the money they'd make on the interest of the new loan.

Aug 25, 2009 02:50 PM
Shirley Parks
Sands Realty 210-414-0966 - San Antonio, TX
Broker, 210-414-0966, San Antonio TX Real Estate

Hi Greg, I'm surprised that you have a short sale listing.  I thought you didn't like short sales. 

Aug 25, 2009 04:29 PM
Brian Lee Burke
Kenna Real Estate - Lone Tree, CO
Broker & Advising Expert-Kenna Luxury Real Estate

Greg - I can feel you steaming all the way from here - LOL. Crazy stuff! ~Rita

Aug 25, 2009 04:51 PM
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

WOW, what a pleasing personality that LO is.  It sorta makes you wonder how many others like him they have on staff.

Aug 25, 2009 10:19 PM
Paddy (Patricia) Pizappi
Better Homes and Gardens Rand Realty - Pine Bush, NY
Real Estate Associate Broker Hudson Valley NY

Really????  The note from the loan officer was inexcusable.  As for the bank's decision not to finance I can't understand.  They would rather lose the possibility of future payments on the house from a new mortgage customer and possibly take the house through foreclosure thereby losing a lot more.

Aug 25, 2009 11:38 PM
Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

I would file a complaint with the stste Greg. Theu get money from us thru Obama and then act like this crap.

Aug 26, 2009 12:44 AM
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

Greg - I suppose Citi has the right to select which properties they will finance.  However, the loan originator's comment was unbelievably unprofessional.  I'm glad to hear Mr. Simon concurs on this point. 

Aug 26, 2009 01:33 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Wow, great professionalism on the part of the LO.  Don't you want him to handle all your deals with such kid gloves Greg?  Their (CITI) whole thinking process on this is ridiculous.  Do they think it's a 'jinxed' property so better not put another loan on it so it won't go into default?  Better get out the Ouija Board and see if this buyer will EVER default on anything including his library books!

Aug 26, 2009 02:17 AM
Teresa Cwik
Showcase Staging Houston - Houston, TX

My thinking is that the bank knows there is something very wrong with this house that isn't getting fixed and dont want to be caught in the maelstorm of litigation if the next buyer finds out about it.

Aug 26, 2009 03:24 AM
Angelia Garcia
Pure Realtors - Dallas, TX

thanks for sharing this insight.  I would of been upset too.

 

Aug 26, 2009 11:21 AM
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Thats an interesting approach... I'm sure he could have found another way to pass along the message to the buyer which would have been less frustrating to all parties involved.

Aug 26, 2009 01:24 PM
Leslie Stewart
Oregon Licensed Broker with Berkshire Hathaway HomeServices Real Estate Professionals - Stayton, OR
Realtor, ABR, CRS, Oregon Licensed Broker

Back to bizzarro world!!! How frustrating for you and your client. 

Aug 26, 2009 05:39 PM
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

Were you around when I had the one with Citi - the short sale that City had a BPO come in at $155,000 so wouldn't budge, we had 2 appraisals at 145,000.  The buyer tried to use Citi and they refused to loan the BPO price because of the appraisals, and the short sale side refused to accept the appraisals because they had the BPO.   Even though they would have kept a loan on the property if either side had said yes and would still be making money off of it. 

Aug 27, 2009 01:59 PM
Robert Vegas Bob Swetz
Las Vegas, NV

Greg - This is very weird, great post and featured at one of my favorite groups ........

EXPRESS WITH WORDS AT ACTIVERAIN

             

Aug 27, 2009 04:50 PM
Robin Rogers
Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX
CRS, TRC, MRP - Real Estate Investment Adviser

"Customer care." Another ridiculous oxymoron.

I'm glad to see you're making progress on this at least. I hope it turns out all right for your clients in the end.

Cheers,

Robin

Aug 28, 2009 01:40 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Greg - This story kind of surprises me because around here, REO lenders do everything they possibly can to get potential buyers to apply in house.  They go so far as attempt to steal approved clients from other lenders.

Anyway, I agree with Robin about the oxymoron "Customer Care".  I've come across a new phrase that I find equally absurd and just a little more than scary - "Escalation Team Member".  The first time I heard? At Citi.

Aug 29, 2009 07:06 AM