CitiBank REO properties are basically residential homes repossessed by the bank after the completion of standard legal foreclosure proceedings.
The effects of the housing bust can be seen on the balance sheets of all major residential financing companies. Many are no longer in business and the ones that are still surviving are left with an overwhelming number of foreclosed homes, also known as REOs. As a direct consequence of the rising foreclosures, real estate prices decreased throughout the country. And the continuing price falls in turn lead to more foreclosures. This vicious circle consumed almost all the major players in residential lending landscape in a span of few years.
Locating CitiMortgage REO Homes for Sale
Real estate investors and home buyers can profit handsomely by acquiring CitiBank REO properties. These properties can be found on the website of CitiMortgage REO department. Companies that specialize in the REO listings such as Foreclosure.com, RealtyTrac.com and ForeclosureS.com also list properties owned by CitiBank. The inventory of CitiMortgage REO properties comprises of thousands of residential single-family and multi-family homes. These CitiBank owned repo homes are usually priced attractively to lead to a quick sale. All the major banks manage their inventory of repossessed homes either through their own internal REO department or through outside REO asset management companies.
In order to be successful at REO investing, an investor needs to consider a number of factors before proceeding to make an offer on a CitiBank REO property. As there are at least a few hundred REO homes listed for sale in any major Zip Code, an REO investor needs to be savvy to quickly consider the various options and decide on the property that fits the investment objectives.
CITI REO Department Procedures
The process involved in purchasing a CitiBank REO home is similar to other residential real estate transactions. A pre-approved REO listing agent selected to handle the sale of a CitiMortgage repo home manages all aspects concerning it. Offers, counter offers, negotiations related to contract and closing must pass through the REO broker’s office before reaching the CitiBank REO department for final approval. All reasonable offers submitted to Citi get reviewed by their REO asset managers. The amount of time they take to do so can vastly differ based on the work load being handled at the moment by the bank’s REO management division.
For an offer to be binding, CITI expects them to be made in writing. All follow up responses to a buyer’s offer are also done in this way. As mentioned earlier, the turnaround time on a REO offer fluctuates according to the number REO properties assigned to CitiMortgage REO department. An investor should approach the bank assigned listing agent for the latest status on any outstanding issue. Generally, Citibank repos are priced in accordance with the local market, but remember that banks tend to be more motivated than traditional sellers – especially if they are saddled with a large REO inventory. CitiBank has its own set of requirements and addendums for investors making offers on its REO homes.
The assigned REO broker should be able to provide all this info. REO properties are often sold in “as is” condition. The seller doesn’t make any warranties and bears no responsibility regarding the physical condition of the listed repo home. Citi Mortgage REO homes are sold this way too. It’s in the buyer’s best interest to have the property thoroughly inspected to make a clear assessment of the needed repair work and related costs.