Timeline for CitiFinancial to approve payoff as 2nd in short sale

[cmwitskie]

Hi, I'm new to this forum and this experience, and appreciate any help in advance.

To sum up my situation, my husband and I put in an offer on a short sale where Wells Fargo holds the 1st and CitiFinancial holds the second. The sellers owe over $328,000 and are underwater on the 1st. They have already had judgment entered against them in court back in October but in Wisconsin owner occupied properties have a redemption period of 6 months. Wells accepted our offer at 229,500 on Monday (after 2 months of waiting). They apparently are willing to give CitiFinancial 10% of what is owed on the 2nd mortgage. The approval letter they gave us states we must close by June 3rd, as they have a sheriff sale scheduled for the property on June 4th. (There was a sale scheduled for 4/23 which they postponed to June 4 because they were still reviewing our offer.) I'm assuming CitiFinancial will accept the offer rather than go to sale and get nothing...

I've read elsewhere that Wells is really strict about postponing sales and will usually only do this one time. CitiFinancial told the mortgagors that they would need 30-60 days to approve this offer because they are so backlogged, but if that is true our approval from Wells will have expired and we will have to get a new approval as well as have them agree to postpone the sheriff sale. Can anyone suggest how to get CitiFinancial to fast track an approval (assuming they will take 10%)? Has anyone had any experience will getting Wells to issue approval letters again after they have expired and/or postponing a sale? Will they order another BPO?

We have all of our financing in order, all the cash on hand for closing, and did I mention I'm 7 months pregnant?- WE ARE READY TO MOVE, all we need is approval from CitiFinancial and we will close ASAP. It is a pretty frustrating process, especially because we can't talk to CitiFinancial directly. Any advice or insight is greatly appreciated!

[Evan Bedard]

I've read elsewhere that Wells is really strict about postponing sales and will usually only do this one time. CitiFinancial told the mortgagors that they would need 30-60 days to approve this offer because they are so backlogged, but if that is true our approval from Wells will have expired and we will have to get a new approval as well as have them agree to postpone the sheriff sale. Can anyone suggest how to get CitiFinancial to fast track an approval (assuming they will take 10%)? Has anyone had any experience will getting Wells to issue approval letters again after they have expired and/or postponing a sale? Will they order another BPO?

Welcome to the community.

I'm very sorry top hear Citi is taking so long to make a decision on the short sale. Unfortunately, with many short sales they are very hard to get approved if there is a second mortgage attached to the property.. That is why Citi is taking so long to make a decision. Sometimes they will accept the offer from the 1st mortgage holder but may request additional additional funds from the seller to close the deal.. This will make it even harder to complete as most homeowners pursuing a short sale do not have thousands of dollars extras to spend closing the deal..