Home Buying in Columbus>Question Details

Msbuckeye2u, Home Buyer in Dayton, OH

We were notified last week that the Short Sale we want to purchase has been approved and thought we could close this week but we just got this email..

Asked by Msbuckeye2u, Dayton, OH Mon Oct 28, 2013

...from our agent when she called to check with the title company to see if we can close this week " they said were working on the file and they were waiting on CITI to give them a figure for the 2 mortgage payoff." Should this have already been taken care of?? What closing timeframe are we looking at now?

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Hard to say. If they're just waiting on a payoff, CITI, as best I know, sends them immediately via fax. However, CITI Mortgage and CitiFinance are two different things. CitiFinance, I believe usually does the 2nds, they can be a bear!! Best, quickest thing is to have the seller walk into their office and demand a payoff. You obviously wouldn't be able to close until the 2nd is addressed. You want/need them to transfer a "clear and marketable" title and if there's a lien on there (2nd mtg) that's not a clear title. It's a waiting game however, hold people accountable. The seller signed a contract that says how long it'd take them to deliver the property if your closing date is nearing (based on contract) you should be able to use that as some leverage. On the flip side.... you can only push people/companies so much. Title is at the mercy of the seller and/or Citi and I'm sure they're doing all they can to push it along. Best wishes for things to go quickly and smoothly for you from here! If I can answer any other questions, I'd be happy to help. Kimberly Lawson, Ohio Licensed Mortgage Loan Originator. Contact and licensing information can be found on my profile.
2 votes Thank Flag Link Mon Oct 28, 2013
It sounds like there are two mortgages on the property. You will need both loans to be approved for the short sale to be successful. The second mortgage may not approve of the terms that the first mortgage wants to settle for. Then the listing agent or the short sale negotiator has to go back to both and negotiate new terms. It doesn't sound like you are done just yet. Hang in there and hopefully everything will work out.

All the best,

Alex Montelongo/Broker
1 vote Thank Flag Link Mon Oct 28, 2013
Hi Msbuckeye2u,

I will not elaborate on what has been answered. They are all good and helpful. My comment is that just in case you might want to get the agents to print up an " extension of closing date" for both you and the seller to sign to keep the purchase offer terms in place. If the closing date is not meet than the offer will go into default if there is not an agreed upon extension.

Wishing you the best!

1 vote Thank Flag Link Mon Oct 28, 2013
Honestly each bank works differently with their short sale procedures. When there are 2 liens there are sometimes several delays. CITI could email the payoff information today and you could still close this week. I imagine that you could get the payoff information as late as Wednesday and still be fine to close on Friday as long as your financing is in order.
Good Luck
1 vote Thank Flag Link Mon Oct 28, 2013
Accurate payoff statements always need to be obtained just prior to closing. So this is not out of the ordinary. As Kimberly said, it usually takes 24-48 hours unless the bank is being difficult - in which case it could take longer. The title company needs an up to day payoff before they can close.

It's very likely that closing slots with the title company are limited. End of the month is always swamped, so they may want to wait until they know for sure before they book your closing. Not to mention that your lender (if you need a mortgage) probably needs to have a firm closing date before they can send documents to the title company. It's not as easy as just snapping your fingers and boom it's ready to close. There's a process that goes into every closing.

In any case, it shouldn't be long and you should hopefully be able to close within a matter of days.

The finish line appears to be in sight,so good luck!
1 vote Thank Flag Link Mon Oct 28, 2013
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