CITI MORTGAGE SELLING OFF ALL THEIR NOTES TO CARRINGTON MORTGAGE LLC..now Carrington is new servicer as of July 20th, 2012!

Hi all! I just got notice from Citi that it will NO LONGER be the servicer as of July 20th, 2012!

Carrington Mortgage LLC out of Irvine/Santa Ana Ca is now going to be the NEW servicer as of July 21st, 2012. 

Here is the problem...if any of you might have something similar to this below:

I have a short sale where 1st and 2nd is with Citi. We submitted buyer's offer to citi. They didn't even do a BPO, they quickly came back with a counter at a price that was alittle high. I sent them a counter offer at a good price and did a CMA showing WHY their price was wrong, and also submitted a revised HUD at OUR counter and an invoice of repairs showing $29,000 of work needing to be done on home, pics, etc.  Negotiator said that would normally be a price they would accept due to the issues, however, every file right now is being declined UNLESS it can close by July 20th, 2012. I told her we could, if she could get this approved. She basically told me, unless something was pre approved prior to July 3rd of this wk, and it was all cash... they are doing NOTHING with any files that have NOT been APPROVED but burning out the time until they are no longer the servicer on this.

Here's the problem, I have NO problem resubmitting the package all over again and starting fresh with Carrington, but of course Citi just added a trustee sale date now of July 25th, 2012.

Well THEY are not the servicer as of July 20th, 2012.And Carrington will only have the file for 4 days as of July 21st, 2012...so THEY will play games. So now I know the game the NEW servicer is going to play on tons of short sales....they will simply say...they don't have the complete file yet, etc...so therefore they won't be able to postpone the short sale UNTIL they get the whole file...tons of these shortsales will go to foreclosure..and citi knows this...  so what would u suggest? I DO have ways to get this postponed...and continue, however,,,, would like to know what YOU would suggest or if anyone else is in this same situation out here in CA.  This just happened with another of my short sales, which was a commercial condo. We started working with Aurora and they sold everything off and now Key Bank got involved and we were able to get an approved price in time for them to postpone the sale so we can close. But this is happening right now with tons of servicers...so look for tons of REOS to come our way..  Can anyone suggest what to do??? thanks Shy:) 310-429-4170

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This type of note activity seemed to have increased about 12 months ago. There has been more selling off of "pools" and non performing notes are being pursued by companies that are in a better position to liquidate. It ends up in a win-win situation for seller and new owner of the pool.

Aurora sent all their servicing elsewhere -- luckily, (for listing agents at least) many of these servicers such as Nationstar are equipped to for short sale or REO. This is obviously bad news for the homeowner who wants to modify or play the rent free game.

In regards to your Citi short sale, it sounds like the negotiator was aware the pool was being sold and wanted to see if they can close with a cash offer.

 

When you said you have your methods to postpone, are you going to use 2923.5? I'm curious to know how well the new servicer transfers records that the homeowner was contacted to offer options.

Is this a Fannie or a Freddie?  They might be able to help.  My Citi that went to sale last week was also in the pool to go to Carrington and I think that had something to do with it going to sale.   Bank of America is selling them off also.  Just called on a 2nd and was told it was sold and because it was sold, there is no file and so they no longer have my authorization and cannot talk to me  WHEW!!!   I'm afraid things are going to get more interesting the latter part of this year - seems to be getting harder, not easier.   And so has anyone worked with Carrington?

Yes they were horrible.  Slow, unreasonable, "we would rather foreclose" was their claim to fame.  This was 5 years ago so I truly hope things have improved.

Explains why my Carrington BPO & PPR business has picked up greatly of late :)

And, just to add a little twist to your situation, Carrington owns Atlantic & Pacific Real Estate - and they are located within the same building as Carrington on St Andrews Place in Santa Ana ! So, who so you think is going to get all those Short Sales and REOs?

Thanks for the insight. Sounds like a RESPA violation waiting to happen. Just out of curiousity, going to check the company's SS listing activity on the MLS.

And if Carrington handles their short sales the way they handle their REOs there will be a lot more Carrington REOs.  When making offers on their properties they are the slowest ... and absolutely determined to get the loan from the buyer in my experience.

Maybe that explains the "we would rather foreclose" phrase that I think I heard daily when processing one of their short sales. Must be nice to own the REO broker who will be getting your listings.

 

I can't help but wonder about the legality of this.  Doesn't sound very "arms length" to me.  Those of us in the trenches are held to a MUCH higher standard that the banks.

Atlantic & Pacific Real Estate is hiring, it seems they might have some business to hand out.

Carrington Press Release dated TODAY

 

http://www.carringtonhc.com/press/news

Wonder what this will really mean for short sales already in progress?

I spoke to a rep at Citi yesterday and was told Citi will still be doing some loans, not everything is going Carrington.

 

As for RESPA violations, since when does a bank really get in trouble, they do whatever they want.  

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