Citifinancial won't accept release docs.. - Posted by Christian Beebe

Real Estate Investing
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Posted by Darren (Houston) on August 31, 2003 at 10:01:53:

Christian,
I have just submitted a short sale package to citifinancial this past week. They were quite rude and generally difficult to deal with.

Good Luck
Darren

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Citifinancial won’t accept release docs… - Posted by Christian Beebe

Posted by Christian Beebe on August 29, 2003 at 15:12:29:

Just talked to local branch of Citifinancial, who told me they are still in control of the 2nd on the house I am trying to short sale. When I sent over the Authorization to Release Info Docs they said they don’t accept those anymore. Anybody heard of this or run across it yet?

Thanks

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Re: Citifinancial won’t accept release docs… - Posted by Cas

Posted by Cas on August 29, 2003 at 16:39:53:

When a buyer issues you an Authorization to Release Info, the buyer, in a way, appoints you as an attorney in fact to handle a specific matter for him/ her. Therefore if the bank refuses to accept such an appointment where the appointment is clearly authentic, it would be the same as the bank saying to a borrower that they will not allow borrower access to to borrower’s own account info.

My point is that this may well be a a breach of contract by the bank. And to the extent that the borrower suffers any quantifiable damages, as a result of this restriction of access to his account info, the bank may be held liable for those damages.

But you might also try a “Limited Power of Attorney”, signed and notariuzed by the borrower. This is a more formal version of the Authorization to Release. If the bank does not accept this document, I can make a very strong argument that they are in breach of contract. Becasue how else can a borrower manage his account if his bank will not communicate/ release info to him concerning his account ?

Mind you, however, that this reasoning could quickly become academic. This is because if the bank feels that you are becoming a “wisea$$”, they could easily accept the Authorization/ or Power of Attorney, but then quickly deny your application for a short sale. Thus you would win this battle, but lose the main war.

So tread cautiously.

Cas.

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Re: Citifinancial won’t accept release docs… - Posted by Christian Beebe

Posted by Christian Beebe on August 29, 2003 at 16:42:41:

Thanks Cas, makes sense.