You can add Citi to the list.

"Report that no transfers of the property can occur within the first 30 days of closing"

My attorney says this could be construed as prior since they use "of closing". We are having the title company review the letter and will update this thread.

Edited: 06/26/2010 at 12:49PM by Scott Hubbard

Anthony Clayton

Commercial Real Estate Broker · Fontana, California

68 posts
5 awards
50 influence

May 13 '10, 07:33 AM

Are you rehabbing the property? If so all you have to do is disclose to the bank that you will be improving the value

Edited: 06/26/2010 at 12:49PM

James Ward

Real Estate Investor · Ocala, Florida

748 posts
18 awards
55 influence

May 13 '10, 08:25 PM

Very interesting Scott.
We have received 2 in the last couple weeks from Citi. I did not see that specific wording on the Letter.
Was Citi just servicing?
Have you directly requested for that language to be removed?
Please keep us up on how this turns out.
Also, I will post the next time I get a Citi.

Thanks

Edited: 06/26/2010 at 12:49PM

Bill Gulley

Real Estate Investor · Springfield, Missouri

5,642 posts
13 awards
100 influence

May 13 '10, 09:36 PM

30 days? Gee, I don't see that as much of a problem. Possession prior to closing, one months rent in the down payment and scheule the closing 31 days off. I think alot of the REO managers are winging it, like many of the small banks in my area are doing.

IMO, investors are still making initial offers as they use to five years ago. Addressing the kind of stuff lenders are adding when (and even after) accepting an offer can be eliminated in the initial offer! Pulling harasing elements after accepting an offer, like putting the sale price of the special warranty deed and making it public record can be addressed in the offer....take it or leave it! Their job is to obtain the highest price, which should trump trying to delay a future sale for 30 days. Bill

Edited: 06/26/2010 at 12:49PM

James Ward

Real Estate Investor · Ocala, Florida

748 posts
18 awards
55 influence

May 13 '10, 11:01 PM

Bill,

No one is talking about REO's. We are talking about Short Sales.

As for your rental idea, it is not prudent for most Short Sale investors. As their business plan is to immediately resell.

As for addressing these types of items, well, I can speak for myself and Scott when I say these items are addressed multiple times thru the process.

Edited: 06/26/2010 at 12:49PM

Mario D.

Real Estate Investor · Naples, Florida

11 posts
2 awards
50 influence

May 16 '10, 02:15 PM

My bet is Citi is just servicing the note and that is why it is inconsistant with the others. You got a spiteful investor. Keep us posted.
M.

Edited: 06/26/2010 at 12:51PM

James Ward

Real Estate Investor · Ocala, Florida

748 posts
18 awards
55 influence

May 17 '10, 08:11 PM

Scott,

We received an Acceptance Letter on 17MAY10 from Citi. The verbage you described was NOT included in the Letter.

A side note- Citi was only servicing the note.

Edited: 06/26/2010 at 12:51PM

Scott Hubbard

Rehabber · Tucson, Arizona

1,031 posts
11 awards
57 influence

May 19 '10, 04:43 AM

Originally posted by James Ward

Scott,

We received an Acceptance Letter on 17MAY10 from Citi. The verbage you described was NOT included in the Letter.

A side note- Citi was only servicing the note.

Thanks James!
The letter is unlike any letter I have previously received from Citi, so I am certain it is an investor stipulation. I believe this is an unusual situation and I want to say that it appears that Citi has not broadly changed it terms.

I did refute the language and am still awaiting an answer. Also, I am trying to find out who the investor is and I will update this thread again.

Edited: 06/26/2010 at 12:53PM

Scott Hubbard

Rehabber · Tucson, Arizona

1,031 posts
11 awards
57 influence

May 25 '10, 08:36 AM

Update:

One of the other stipulations in the approval was that we closed within two weeks. Due to a title issue, my client cannot close. Since we got a really good price, the approval letter actually had a 10% of net proceeds penalty for not closing. The net proceeds is $158K, so they are now proposing a $15K increase to their net in order to extend a new approval.

Well, I guess I will have my work cut out for me on this one.

Edited: 06/26/2010 at 12:57PM

Daniel Fernandez

Real Estate Investor

47 posts
50 influence

Jun 03 '10, 04:41 PM

Oh boy...
How is that working out Scott? This gets me to thinking about large banks like BofA/CITI.

Do they only service their "properties" (well notes,. actually). It seems like when submitting a shortsale to BofA or CITI, or other giant servicer banks, that you are dealing with two seperate entities. Their personal 1st position mortgages, and the notes they swallowed from the other Bank(s). Did BofA/CITI pay for all the paper they received or was it just given to them ? lol, Seriously I dont know, but do understand that these notes are held by private or public investors as well. I might be getting off topic a little, But would like to know everything when dealing with the super-banks. as I have many Shortsales heading to them. Is this a valid point, or not really?

If this is true, then depending on the property I am offering on, should I expect anything and everything as far as contract terms, since each file has its own money path?

Edited: 06/26/2010 at 01:05PM