CitiBank actively originated loans that required low to no down payment during the housing boom. These creative and easy loans soured as the financial crisis and the recession struck hard at the vulnerable home owners. Borrowers defaulted in droves as market values went down. With little or no down payment, these defaulters have not much to lose, except for ruined credit.
CitiBank REO Listings
CitiBank’s repo homes become part of its foreclosed home inventory. These properties become its Real Estate Owned (REO), managed by its REO or loss mitigation department. The task of disposing the foreclosed properties is often vested with the entity’s own asset management division, or outsourced to an external service provider. The REO listings can be found right on the website of CitiMortgage.
A investor or buyer can easily filter through the REO listings using advanced search features. The properties can be sorted based on the location, no. of bedrooms, bathrooms, area etc. The preliminary information related to the property can be found on the listing page. The contact information of the REO agent handling the listing on behalf of CitiBank is also presented. An investor should contact the agent to get necessary information needed about listed CitiMortgage REO properties to proceed further.
CitiMortgage primary business is to lend money, not to manage a portfolio of distressed residential real estate portfolio. The REO homes owned by CitiBank are a big drain on the company’s current profits, as REO properties incur ongoing maintenance expenses, and local taxes. The seller of REO homes will obviously try to increase the amount they can recuperate from a sale. Lenders such as “CitiBank” that hold a large number of REO homes are often inclined to lower the sale price to allow for a faster sale. The larger a lender’s REO inventory, the more they will be ready to negotiate and seal a deal.
CitiBank employs a number of ways to sell their REO homes. Some of the properties are pooled into a bulk package and offered for sale to big investors and companies that hold residential real estate. Bulk REO tapes from CitiMortgage are only available to a handful of qualified investors. REO agents list individual properties. They handle the entire process from contract to closing by working as a liaison between CitiBank REO department and the buyer.