CitiMortgage REO Homes for Sale
First-time home buyers and real estate investors can purchase CitiMortgage REO homes at a deep discount to their current market value. The process involved is not the same as the one followed for a short-sale or involved in purchasing a home from a foreclosure auction.
CitiMortgage is the home loan lending division of Citigroup – the global financial conglomerate. The company is headquartered in St. Louis, Missouri and lends on residential home loans all over the country. They offer a number of residential loan programs to finance both first-time home buyers, home owners and investors.
Issues with Foreclosure Auctions for Investors
Foreclosure auctions have difficult rules that may not be suitable for novice investors. There is a big amount that needs to be deposited immediately upon winning a foreclosure auction. The amount of time allowed to come up with the balance amount is less than a week. Extensions may be sought, but never for more than a month. Moreover, investors never get to visit the property beforehand. The property doesn’t immediately come under the possession of the investor, if the previous tenants or owners are still occupying. Initiating Eviction procedures and paying off of other liens and encumbrances is necessary to finally get the control of the property and the title to it.
Due to the cumbersome and pressurized process involved, many investors back off from buying a property from a foreclosure auction. Any property that fails to sell gets repossessed back by the home loan note holding lender.
Buy CitiMortgage REO Properties
Properties repossessed by theCitimortgage become its REO properties. Borrowers due to a number of financial and personal issues may fall behind on their monthly scheduled mortgage payments to Citimortgage. Such borrowers are served notice of default, which initiates the pre-foreclosure. This entire process ultimately leads to a foreclosure auction if the borrower doesn’t remedy the situation in the stipulated time.
The inventory of CitiMortgae REO homes can be a good source of undervalued residential real estate.
Dealing with CitiMortgage REO Department
All CitiMortgage REO listings are handled by their internal reo department. When there is an excess volume of reo homes, the bank may also use the services of professional REO asset management companies that specialize in handling such distressed real estate.
The aim of the REO department is to sell Citimortgage owned REO homes as soon as possible at the best possible price. These conflicting goals help the savvy real estate investor to negotiate a good deal according to terms suited to him. A number of carrying costs have to be borne by the mortgage bank on a reo property. They have to pay local property taxes, maintenance expenses and other related costs. These carrying expenses increase the already steep loss suffered on the property to the previous mortgagee’s defaulted interest payments.
Find CitiMortgage REO Home Listings
All the homes that are currently offered for sale by Citi REO asset management division can be found on their website. There are a number of home listings all over the country. Once a property is listed through a local real estate agent, any offered received need the approval of the REO asset manager.
Regularly checking the website can help an investor spot a great deal among the Citi REO home for sale.