OK, so I have a pretty big issue with Chase short Sales. They have been great to work with in the past for short sales, but according to a negotiator with Chase Home Finance, they now have some new policies that are about to take effect, that I feel obligated to notify my AR friends of!!
Keep in mind that in this particular transaction, the 1st lender is "Chase", the second is "Chase Home Finance". Either way, from what the negotiator on the second loan (chase home finance) told me Friday that they have just had a couple changes in policy that take effect November 15th, and they also still apply with "Chase" (their parent company) as well.
Change #1-- The MAXIMUM commission they will pay out is 4%, period. I've gotten 6% from them in the past! Now this is crazy, as after paying a buyers broker, and administrative costs, taxes ect... I'll get around 1/2%!
Change #2-- They say they are demanding they home owners take back an unsecured loan for any deficiency in the state of Florida (and most others). For anyone not familiar with some of these terms, it basically means they have are holding home owners 100% liable for their full loan balance.
From what the lady said, there are no exceptions. So this means that I will most likely DROP all of my short sale listings with Chase right away (which are quiet a few), and never work with them again. Now on to the much bigger picture. Our government must step in. When they do stuff like this, the good and experienced short sale agents will not list them anymore, and they will go into foreclosure!!!! Heck, if they are not forgiving any deficiencies, they must want to own a few million properties! These guys are fools!
Fortunately this deal will be saved, because the home owner is actually demanding a deficiency judgment, as the $$$ is the difference between a chapter 13 and a chapter 7 bankruptcy, so that works good for me! The deal probably wouldnt' have happened otherwise! Many lenders are not this bad. We work alot of EMC short sales, and they seem to approve everything within a few weeks. Aurora Loans short sales are golden as well in this market.
Did anyone else have this experience recently / hear the same thing with them??
Is this negotiator just off her rocker??
Update 5/18/09: Here is another more recent experience we are having right now with Chase. I'm happy to announce that we are now suggesting foreclosure to most home owners with a loan through Chase! It seems to be their only alternative!
Five Reasons our Government Should take over Chase Home Finance and JP Morgan Chase
Update 10/12/10: Even more has changed since these posts were written. Chase has improved dramatically in the last year or two. They are now decent to work with provided they are 1st position. Chase owns EMC, who was mentioned as being decent above. BOTH EMC and Aurora mentioned above as being good lenders for short sales have moved way down on the ladder in the last year or so and are closer to the bottom of the list. They have been horrible lately! Leading the way right now for best lenders to work short sales with are Litton Loan Servicing and GMAC Mortgage Short Sales. Of the major lenders, Wells Fargo Seems to be the best.