Citigroup--or more specifically Citigroup's mortgage servicing branch CitiMortgage, has been averaging a $12,000 payment to borrowers upon completion of a short sale this year. By comparison, the mortgage servicer had a $1,500 payment average in 2009 and a $3,000-$5,000 payment in 2010.
Hate to be sarcastic here, but I had no idea going through a short sale could be so lucrative. Doesn't that sort of defy what a short sale is in the real estate world? Such a cash-heavy "pay day" may send the wrong message to underwater homeowners. After all, $12K can go a long way to moving and/or relocation expenses.
"Incentives will be offered to customers experiencing financial hardship who need funds to proceed with the short sale," explained a Citi spokesperson. "The amount, which is agreed upon up front, varies according to the borrower's individual circumstances and loan characteristics. It is disbursed to the homeowner when the sale is completed."
CitiMortgage has also reduced its short sale process from 120 days in 2009 to 83 days. The company claims this is due, in part, to the firm reaching out to borrowers in trouble, instead of just waiting for the distressed homeowner to contact the bank for short sale information.
Agents, what do you think of this $12K payout? Sound off below with your comments.