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CitiMortgage is a part of the global banking & financial conglomerate, Citigroup. They are headquartered in St. Louis, Missouri. They provide mortgage products along with Citi’s extensive range of financial, banking and insurance services. Buying Citimortgage REO properties can be a sure way to earn safe & significant returns for real estate investors and home buyers.

Borrowers on real estate face foreclosure when they fail to make the regular monthly payments according to their loan terms. The foreclosure process often begins when a home owner who defaulted on his or her scheduled payments is served with a Notice of Default (NOD). It ends with a foreclosure auction conducted by the county sheriff or trustee sale depending on the rules governing the state in which property is located. When a property reaches the auction and fails to fetch the price the bank deems satisfactory, such properties are retained by the bank. Such retained properties by banks are usually referred to as “REO”.

CitiMortgage REO properties comprise of all the delinquent and repossessed residential homes from Citi mortgage, Citifinancial and other Citigroup subsidiaries. They are all handled by the Citi REO Department. Acquiring foreclosures through the auction process can be very intimidating and daunting. The standard deposit amount of 10% needs to be submitted right after making the winning bid on a property. The buyer will not get to see the property to determine its condition. This inability to assess the structural and aesthetic condition of a foreclosed property inhabits investors from making purchases through the auction. Moreover, the troubles don’t end even after one closes on the foreclosed property by coming up with financing – which, by itself is quite difficult to secure. The existing tenants – whether they are the previous owner or the renters – need to be evicted. This process can drag out, and involves many headaches, while the borrower burns a hole through his pocket by making mortgage payments on his loan. All these issues can be avoided to a certain degree when buying a property directly from a bank or mortgage lender such as Citimortgage REO. All the properties within their portfolio can be found in CitiMortgage REO Listings.

CitiMortgage has to bear “carrying costs” on all its REO properties. The costs involved in maintenance, cleanup, fire insurance and property taxes of the foreclosed REO home are treated as REO carrying costs. These ongoing expenses for the property are in addition to the costs incurred due to the foreclosure process and loss of interest income through monthly mortgage loan payments. This crunch situation can be used to effectively negotiate a lower purchase price on CitiMortgage REO properties.

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