Posted by diond on September 30, 2003 at 22:54:52:
I dealt with CF this morning on a 2nd that they were foreclosing and the 1st wasnt. They told me in no uncertain terms that CF does not and will not sell their notes or mortgages.
Citifinancial - will they discount??? - Posted by Ken_GA
Posted by Ken_GA on September 29, 2003 at 23:00:45:
Hello all,
I’m working a deal where Citifinancial holds a 2nd for approx $19K. The first is at $53K (Total balance = $72K).The current value of the house “as is” is approx $100K. ARV in the subdivision is $130K - $140K and needs paint, carpet and updating kitchen/bathrooms. The house is not yet in foreclosure, but the homeowner is 2 - 3 months behind.
Scenario aside, does anyone have first hand knowledge of whether or not Citifinancial will discount in a situation like this? The 2nd is a home equity loan. I spoke w/ the local office manager and he suggested I “make them an offer”. At least he didn’t say “no”.
Any suggestions on how you would approach them would be greatly appreciated.
Thanks,
Ken
Re: P.S. - Posted by Blane (MI)
Posted by Blane (MI) on September 30, 2003 at 21:14:08:
Forget the branch manager, get an authorization to discuss/release loan info from the seller and call Loss Mitigation. Email me if you need the number.
Blane
Yes they will - Posted by Blane (MI)
Posted by Blane (MI) on September 30, 2003 at 21:11:12:
I have one right now where they are the 2nd (Chase is the 1st). Didn’t get them down a lot at first, but did get them from 32K to 22K to 19K. Then they got wind that the 1st might be trying to squeeze them (true or not, who knows), I said ok, $500, they countered at 4K, “that’s the lowest we’ll go.” Now if I could just sell the darn thing…
Blane
Present a Written Offer - Posted by JT-IN
Posted by JT-IN on September 30, 2003 at 17:32:12:
In person if you can speak to the Branch Mgr…
What I usually do is submit a well-drafted letter on your letterhead. Make the offer reasonable, in light of the FMV and LTV, don’t present them with a 1K offer, or anything close to that… as it will ruin your opportunity here. Make the offer concise and allow them a 4 or 5 day window to accept the offer, before it expires. Also indicate how and when you could execute your offer… if accepted. e.g. Payable by Certified Funds, within 5 days of acceptance, and upon delivery of executed “Assignment of Note and Mtg” , etc. Leave as little to interpretation as possible and let them know by your offer that you mean business.
With the Branch Mgr encouraging you to “make an offer”, that would say to me that they are willing to offer SOME discount. How much…? Who knows… my guess is somewhere around a 12K to 15K purchase of the paper… but simply a guess. The lender is not really in much jeopardy of losing any money where they sit… but may offer what I like to call a convenience discount… which means if they offer you a small discount then you deal with the headaches, instead of them… and for that out, they will discount slightly… in these circumstances.
Let us know what happens…
JT-IN
Re: Citifinancial - will they discount??? - Posted by JohnBoy
Posted by JohnBoy on September 30, 2003 at 03:19:21:
I would do just what the local branch manager said. Make them an offer and go from there.
Re: Present a Written Offer - Posted by rm
Posted by rm on October 01, 2003 at 09:45:16:
would you also submit an itemized list of repairs, comparables, interior photos, etc., as you would for a first lender, or do you keep it short and simple?
Re: Present a Written Offer - Posted by JD
Posted by JD on September 30, 2003 at 18:15:10:
I don’t know how succcesful Ken_GA will be in getting CitiFin to do a short sale, but I know that CityFin will not sell their notes and Deeds of Trust (for a discount or for full price).