Short Sell Dilemma with CitiMortgage

[IFORGOT]

Hello all,

Great site, great people and great information. Hopefully, somebody can give me some advice or information to help me make the best decision possible on my dilemma.

I'm in the process of short selling my house. I got an offer on my house and my realtor has submitted packages to both my mortgage companies, Countrywide and CitiMortgage.

From what I'm told, normally the second mortgage company doesn't make a decision until the primary mortgage company decides. In my eyes, it makes sense, since there is no point to waste man/woman hours to process the short sell if the primary declines. However, CitiMortgage recently changed the way they handle short sells. They review and make a decision while the primary mortgage company is processing the short sell. Now to my dilemma.

Info:
440k Countrywide
110k CitiMortgage

Offer:
405k

CitiMortgage reviewed my package and will accept it without a promissory note, if I accept it by the 8/21 and pay them 4k. This will completely satisfy my liability to Citi Mortgage and their lien will be release from the property. If this happens, the only party I would have to deal with is Countrywide, but I fear that Countrywide will see that I paid them off and demand money as well.

If I don't accept it by 8/21, the payout could be up to 10% of the 110k remaining balance. Countrywide is still about 15-18 days to making a decision, so I can't wait on them to see if they accept and what they'll be offering CitiMortgage.

I'm about 4 months behind on payments, so that 4k would almost make me current for that loan, but I feel like I shouldn't be paying anything on a short sell? I'm short selling, therefore I can't make payments. How can I negotiate this? I was thinking of asking them to lower it and remove the late payments from my credit report and having the final charge off being on a positive note. Not sure on the correct verbiage for that, but I'm still researching.

Sorry for being erratic, just have a lot going on my mind and need some help and info to help me make the best decision possible.

Any thoughts on this. Both positive and negative are welcome.

TIA!

[Moe Bedard]

Glad you joined LoanSafe.org!

I have seen quite a few short sales in my day and I would say that you should be fine. This is quite normal and $4k is not much. Plus Countrywide will benefit in this transaction. However, anything can happen and I have seen that anything many times.

Often it depends how good your Realtor or lawyer is. That is usually the deciding factor if you otherwise qualify and the bank is willing to negotiate.

[kaye_ca]

iforgot, when did you submit your shortsale package to Citi? My realtor faxed our shortsale package this morning (both loans with Citi). So, appreciate if you can give me an idea when to expect feedback from them.

As for your dilemma, if I were in your situation, I would probably negotiate to lower the payment further.

[IFORGOT]

Thanks folks for the feedback. It helped me make a decision.

I asked my realtor to ask them to lower the payoff, remove late payments from credit and the account be closed as paid as agreed.

Originally Posted by kaye_ca

iforgot, when did you submit your shortsale package to Citi? My realtor faxed our shortsale package this morning (both loans with Citi). So, appreciate if you can give me an idea when to expect feedback from them.

As for your dilemma, if I were in your situation, I would probably negotiate to lower the payment further.

I submitted my packages on July 21st, so pretty quick turnaround. However, my realtor is constantly talking with them and providing me and the potential buyer weekly updates.

[kaye_ca]

hello, any updates on your short sale process with Citi?
We faxed our package about 2 weeks ago but no update yet. Are they calling us or do we keep on following up? Appreciate any tips you can share.

[IFORGOT]

Decided not to go with their offer, since Countrywide was playing hardball with us. Now that we have an offer that Countrywide accepted and are willing to give CM 5k, CM is asking for approx 10.5k in promissory note (over 84 months) from me. I think I'm going to tell them I'll give them the 4k they offered originally, since they'll already be getting an additional 5k. Nothing has changed since they're initial offer and they didn't mention anything about a promissory note before hand.

Originally I thought CM was easier to deal with. Now they just want more and more and are not willing to negotiate. I'll admit, they do move quicker than Countrywide.