Citibank Short Sale

Short sales are a popular recourse for homeowners with underwater mortgages or are at serious risk of foreclosure. For Citibank borrowers, the short sale process can be complex, but it’s definitely not impossible. A Citibank short sale follows more or less the same steps as other banks, but the time frame varies widely depending on each borrower’s case. This guide offers a look at the Citibank short sale process and how you can make it work for you.

Applying for Citibank Short Sale Listing

Before you can list your home, you have to make a formal application by submitting the form along with a few financial documents. Citibank short sale requirements usually include tax returns for the past two years, W-2 forms and tax schedules, and about two months’ worth of pay stubs, bank statements, and bills from your mortgage and other accounts. They will also ask for copies of the mortgage note and deed of trust.

Negotiating the Citibank Short Sale

These documents are meant to give Citibank a good idea of your financial situation. It lets them see how you fell behind, whether or not it was intentional, and how much of the mortgage you can comfortably afford. Often, if you have other assets or aren’t too far behind, they will suggest loss mitigation alternatives which would be less drastic than a Citibank short sale.

Qualifying for Assistance

Citibank requires borrowers to be in default by at least one month and have no means to pay off the mortgage and other existing debts. Before proposing the short sale, you must also have a qualified buyer ready to buy your property. The bank may also look at your current income; if you have lost your job or been demoted, you may also be considered eligible for a Citibank short sale.

Protecting your Credit

Most short sales will reflect on the borrower’s credit as a pre-foreclosure in redemption status, meaning you were already in foreclosure and were able to prevent it with a Citibank short sale. However, the drop is usually between 30 to 100 points, which is much smaller than the 300 to 400-point drop often resulting from foreclosures. The best way to minimize the damage is to apply for a short sale early on, while you’re not that far behind and may still have alternatives at hand.