Has anyone ever heard of a mortgage company withholding your payoff balance for 7-10 business days?

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We are in the process of selling our home and recently found a buyer relocating from CA. to KS. with a closing date of Feb 7th. When we called Citi Residential Lending (where our home loan is thru) we were told that we would have to make a request in writing and it would take 7-10 days. The title company faxed a signed request and 3 days later we still can’t get anyone from Citi to verify the request is in process. Based on previous experience of selling a home – I was able to get my payoff balance immediately upon request – not a 7 day waiting period. And don’t even get me started about how rude Citi has been – not only to us but the TITLE company who is sending them the check. We have contacted the Better Business Bureau & the Kansas State Attorney General & the Kansas Banking Commisioner (who Citi falls under) no help! Any suggestions???? or comments would be appreciated!

  1. Reply
    February 10, 2011 at 10:53 am

    usually you get it by fax right away. Apparently they don’t want you to pay it off. There should be an agency in charge of Mortgage Companies. That is who you need to contact.

  2. Reply
    February 10, 2011 at 10:59 am

    I guess that is citibank’s policy – to take a long time.

  3. Reply
    Mary B
    February 10, 2011 at 11:37 am

    That is a common tactic that these little banks use until they can get a loan officer on the phone to get in touch with you to try to get you to do your new loan under them.

    How well is their tactic working to get you to do repeat business with them?

    I know…I don’t get it either. There is no reason for the delay, other than they want to be difficult (most banks will send it over same day), and it only makes their customer mad to where they never want to do business with them again.

  4. Reply
    Lisa L
    February 10, 2011 at 11:57 am

    Yes, I have run into this before. Usually it doesn’t take that long, but they like to CTA just in case.The title company should have requested the payoff as soon as they got the request for the title work, but I have found they put things off until the last minute. So, some blame may need to be put on them too.

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