I am trying to do a DIL with Citimortgage without going into short sale first. I called them about a month ago and told them about what was going on with my property. (We have a collapsed cesspool and cannot afford to install a new septic system, total cost= $25K). I was transferred to the short sale department and a lady there advised me that since we have a fannie mae loan, we should go ahead and fax in our paperwork for a deed in lieu. So we did that. I called two days later to make sure the fax went through and was told by someone in the short sale dept that they don't accept DIL unless the property has been in short sale. I got kinda upset and told her that I spoke to a lady named Lisa who had instructed that I should go ahead and fax my DIL paperwork. The lady on the other end, basically told me to stop yelling and being upset with her and that she's just telling me the facts. I wasn't yelling and yes I was upset but not rude.
We had left the property and are living in a rental right now. We are paying less for rent but cannot afford to keep paying for our mortgage at the same time. We are still paying for utilities and security for our home. We are about 90 days late on our mortgage. We did consider a short sale but our real estate agent informed us that the chances of our house selling with a busted cesspool will be very slim. She told us finding a buyer with cash to buy our house is going to be hard as banks will not give loans to buy our house. It did not help that we also live in a very undesireable location and the house itself needed some work. After consulting a real estate attorney, we were advised that a deed in lieu is our best option.
On 11/23, we received a letter from a Citi's rep stating that she will be working with us on our case and to contact her if we have any questions. On 11/25, we received 2 letters from Citimortgage that we have been denied for loan mod, short sale and DIL because our income is too high. I completed the online forms on citimortgage website about a month prior to submitting my DIL package. We received an email about 2 days later from Citi's home owner's support specialist asking for formal bank statements and to complete the 4506tez.pdf and dodd frank form. We were also told that she will be ordering a BPO on our property. We emailed our bank statement, completed the forms and asked her about the denial letters. No response yet. We also received a call for an appointment for an internal BPO of our property. So far I am confused about what is going on.
I don't know what to expect with the internal BPO. I hope they are convinced that my house will not sell on the market even with a short sale. I know we qualify with HAFA but it is really up to citimortgage to waive short sale and go on straight with deed in lieu. All we want is to just get this over and done with. I have a credit card with Citi and they had already decreased my credit limit to the point of almost maxing me out.. so I know my credit score has already started to take a hit.
I was just wondering about our chances of settling with a DIL with citi and if anyone has dealt with citi, hafa and a straight on DIL. Thanks.