Home Loans and Support

CitiMortgage denied deed in lieu

Discussion in 'CitiMortgage' started by brycar, Aug 15, 2012.

  1. brycar

    brycar LoanSafe Member

    Hello, I hope to get some advice here, so below is my story:

    In May 2011, we had to move out of our house because my wife had to transfer due to her job to a different state. This put me out of a job. We were unable to pay for our house and rent in our new city. We tried to sell the house for the full amount we owed. We did not get any offers or interest in it by December 2011. I called CitiMortgage and spoke to their home owner's assistance department. I was told to apply to do a short sale. I was approved for a short sale in May 2012, we had a buyer interested, but he backed out. About a month and a half ago, I got my loan sent to the deed in lieu department. Finally today, I called and asked for a status update, and they said I was denied because the foreclose process has already started. I asked if they had a foreclose date, and he said no, but they can't approve the deed in lieu because of this. The foreclosure process started before I even tried to do a deed in lieu. He did say I am still approved for a short sale though, but I don't have anybody interested at all.

    My questions are:
    Why did it take them a month and a half to figure this out?
    Isn't that what a deed in lieu is for, to avoid foreclosure?
    Is there anything I can do now, I do I just sit back and wait for the foreclosure to happen?

    Any help would be appreciated.
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Welcome to the forum and thank you for joining..........

    It doesn't sound as though you were given accurate information by the contact. Initially most lenders require that a home be on the market for short sale anywhere from 90-120 days before they will even consider a deed in lieu. There are also other factors that tend to make a deed in lieu a difficult option. Do you have more than one lien on the property? What state is the property located in?
  3. brycar

    brycar LoanSafe Member

    Hi, thanks for responding.

    No other liens on the property. The property is in New Mexico. I was told by two people there that I wasn't approved because the foreclose process has started. I think they are just reading the notes on file though.

    Initially, the lady I talked to before I applied for the deed in lieu, said she saw no reason why I wouldn't be approved since my house was on the market long enough and I tried to do everything to sell it first.

    Do you think I should call back, every time I do I just get somebody reading the same notes from my file.
  4. Cat Damiano

    Cat Damiano Mortgage Wars


    I think that you should try calling the Executive Response Unit instead and see what they have to say, even if the process of foreclosure has begun, with only one lien on the property and no sale date, you should be eligible for the DIL since you did market the home for Short Sale first.

    They can be reached here;

    homeownersupport@citi.com
  5. Cincheetah

    Cincheetah LoanSafe Member

    Wow - I'm even more confused than ever. In short, tried a short with CITI and like you my buyer backed out. They told me to relist for another 90 days at a lower price - still no bites, I asked for a DIL. Then I recieived court docs . I checked on my DIL only to find after 3 mns the paperwork was with the wrong negotiator. All this started in Jan of this year. They are just now searching my title etc ... so I don't know why you are being told they can't do a DIL as my foreclosure process has a court date.

    One of us is getting the run around, I can't tell which one of us though.
  6. mjcardace

    mjcardace LoanSafe Member

    Hi, sorry I'm late here. I'd like to put you directly in touch with our Homeowner Support Escalation team to have your situation reviewed. Please send me a note at the address below, and include a copy of your posts here and your address/best phone#. Looking forward totrying to help! Also mention that you came from Loansafe in the subject line.

    Regards,

    Mike Cardace, Citi
    homeownersupport@citi.com
  7. brycar

    brycar LoanSafe Member

    Hi Mike. Thanks, I have actually called the CitiMortgage Executive Response Team yesterday and spoke to Jane Daniels. She called me this morning and told me they are still looking into it, they can't figure out why I was told that. I haven't heard anything since. I hope to hear something today.
  8. brycar

    brycar LoanSafe Member

    So here's an update. I called the executive response team last week. They finally got back to me this morning and they did tell me that our loan is denied for a deed in lieu because the foreclosure process has already started. I don't get it. I have spoke to others who were able to do a deed in lieu after the foreclosure process has started. Is there anything else I can do, should get a lawyer?
    Last edited: Aug 22, 2012
  9. Cat Damiano

    Cat Damiano Mortgage Wars

    Unfortunately getting a lawyer will most likely just drain you of funds that you may need in the future. They are not going to be able to force Citi to give you a DIL.

    Aside from calling, were you able to email Michael directly with LoanSafe in the subject line and a link to this thread or did you just call in?
  10. brycar

    brycar LoanSafe Member

    I just called in and received the answer back this morning. I just sent him an email with LoanSafe in the subject line just now. He is on the Executive Response Team and so was the lady that gave me the answer, so I am not sure if he will be able to help, but we'll see.
  11. Cat Damiano

    Cat Damiano Mortgage Wars

    He is one of the heads of the ERU, and may still be able to help.
  12. brycar

    brycar LoanSafe Member

    Here's an update. I got an email this morning from CitiMortgage telling me that they would consider the deed in lieu. The house has to have absolutely nothing in it, and I have to be there for the walk through. If the house has anything in it, the walk through will fail, and I will have 14 days to clean it until the final walk through. So I am trying to figure out a time to fly down there, but this is for sure good news. I will post any updates as they happen.
  13. Cat Damiano

    Cat Damiano Mortgage Wars

    That sounds like some great news finally for you. Please do keep us updated on how it goes and Good Luck!
  14. brycar

    brycar LoanSafe Member

    Well, I finally have the house spotless, and they should do their walk through this week. Does anybody know if you get $1,000 or $2,000 for a deed in lieu, or is that up to Chase? They were going to give me $1000 for a short sale, but I don't know if that still applies for a dil. It would definitely help pay some of the bills.
  15. Cat Damiano

    Cat Damiano Mortgage Wars

    That is up to the lender, so you will have to see.
  16. brycar

    brycar LoanSafe Member

    ok, we finally got our DIL paperwork yesterday to sign. We signed it and sent it back. The lady I have been working with said that is all we have to do, they just have to get their attorneys to finalize everything. Yay! The paperwork didn't mention any incentive/relocation money, but I will see if that comes. Either way, I am thrilled it's finally happening, I was really worried.
  17. Cat Damiano

    Cat Damiano Mortgage Wars

    That is such great news! You still may get cash for keys.
  18. Cincheetah

    Cincheetah LoanSafe Member

    Congrats! I'm happy to read that - glad you were able to get what you wanted!
  19. brycar

    brycar LoanSafe Member

    Aaargh! I haven't received any final paperwork, so I sent the lady an email asking if it was complete. She said they forgot a document, so they are going to resend the package for us to sign and we will have to return it. We did this over 2 weeks ago and they are now realizing that they forgot a document. This is so frustrating.

    I also asked when the 1099 will be sent, she said not until the house sells through their Real Estate Owned Dept. There is a forgiveness of dept act that is valid through the end of 2012. Does anyone know if the deed in lieu is complete in 2012, but the mortgage company does not sell the house until 2013 if the debt would be considered forgiven when I do my taxes? I don't know how long it usually takes a mortgage company to sell a house after the DIL, but I doubt it would be this year.
  20. Cat Damiano

    Cat Damiano Mortgage Wars

    For that you would need to look through the Q&A and if you do not see the answer to your question, try asking your accountant or a tax professional in your state.

    The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

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