This is NOT meant to be a duplicate posting. I posted the link for this website under "Credit in the News".
Shane, under CitiBank (http://www.foreclosureradar.com/short-sale-report/citi-mortgage)
"Update - CitiMortgage has a new form approval letter containing the following: CitiMortgage, Inc. reserves the right to revoke the short sale authorization until the certified funds and final HUD 1 settlement statement is received and reviewed. In other words, they reserve the right to unwind your deal – that would be after the buyer, with a policy of title insurance in hand, already owns it. Getting a short sale closed on an approval letter that includes this clause requires an extensive and entirely silly work-around by the agents and the escrow agent."
Can you respond to this/give feedback or thoughts? Have you seen this verbiage before? Dealt with this before?
How do agents and escrow agents get around this "right" in the approval letter?
I am not Shane, but I will play him on the made for tv movie.....
Funds are wired and HUD-1s are faxed.... Within minutes of closing.
Title insurance doesn't make you the owner.
But it DOES seem that they can yank the deal mid-stream. I wonder if this verbiage will actually be added to the contract.
Thanks Dallas! I haven't seen you in ages, so I didn't think to ask you. Sorry!
What makes me the owner then?
My understanding is title insurance protects me from prior liens or unknown claims to the property. If the bank, CitiBank, has a lien on the property (they do) and they get the fund wired with the HUD-1 at closing, what legal right do they have (outside of their letter stating they reserve the right) to reneg on a done deal? I paid my money, they got their money, title is redone, I have keys.
Technically, wouldn't I have a legal claim against CitiBank for double crossing me? I would have a ratified contract, I would have paid them (at closing) per the ratified contract, and then they say, "Oh sorry, we changed our minds?"
Thanks StartingOver10 --- when does that happen after closing? Just wondering how much of a window Citi would have to "change their mind".