no more short sales with Chase again! And no debt forgiveness!

By
Real Estate Sales Representative with First Coast Realty Associates

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.

 

Jacksonville FL Real Estate and Jacksonville FL Luxury homes and short sale properties for sale

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lamp to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
Christian Mortgage and Real Estate Professionals
Realtors®
Short Sale REALTORS®
Short Sales Specialists
Tags:
short sale specialist
jacksonville short sales
chase home finance
short sales
chase bank short sales
chase short sales

Comments 45 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the car to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Anonymous #26
Anonymous
Katherine

What's usually the time frame with Chase?  Package was recieved May 4th, Logged in to the system and to call daily for the assignment of a negotiator.  May 18th rolls around and was told that the package was received at the West coast office and should have been sent to the east Coast office (this sale is happening in PA). That was corrected and now was told to keep calling for a Negotiator. 

This short sale has only one lender involved (Chase).  What's the typical time a negotiator is assigned?  And from that point what is the time frame for a BPO? And approval?

 

Thanks!

June 03, 2009 12:16 PM
Rainer
15,573
Jay Badru
Certified REO/Short Sale/Foreclosure Specialialist
Keller Williams Realty Cityside

Katherine,

I will say sixty days. Ask the seller to call twice a week. Wednesday am . & Friday am.  The seller must be aggressive in the process as well.

Good Luck

June 03, 2009 04:10 PM
Anonymous #28
Anonymous
Katherine

Thanks Jay!

 

 

June 03, 2009 06:20 PM
Rainer
15,573
Jay Badru
Certified REO/Short Sale/Foreclosure Specialialist
Keller Williams Realty Cityside

My Pleasure!

June 03, 2009 06:33 PM
Rainer
91,941
Mike Linkenauger
Short Sale Realtor - Jacksonville FL
First Coast Realty Associates

I faced that same thing.  Needed to be sent to the Texas office, NOT the California office or whatever.  5-6 weeks from the time the correct office recieved it, minimum.  Chase is definately getting better with some things, but the fact that they are forcing homeowners in deficiency judgement states to repay the balance in many cases will cause many properties to be given back to them!

June 03, 2009 08:35 PM
Anonymous #31
Anonymous
Katherine

Mike-

What stage are you at now?

June 04, 2009 05:45 AM
Rainer
91,941
Mike Linkenauger
Short Sale Realtor - Jacksonville FL
First Coast Realty Associates

The one that this article was originally written about closed back in December of last year.  I have four or five going on with Chase right now, but have been trying to stay away from some of them.  With the major lenders like Bank of America/Countrywide, Chase, and Citi, getting a good negotiator assigned seems to be the most important step.  Of the major lenders, Wells Fargo is the only one that consistently has competent negotiators and processors on staff.  Wells Fargo Short Sales are some of the best to have, their average approval time is 4-5 weeks if you stay on top of them.

June 04, 2009 08:07 AM
Rainer
91,941
Mike Linkenauger
Short Sale Realtor - Jacksonville FL
First Coast Realty Associates

Chase has definately improved some since this blog article was written, however the do continue to be a close tie with Bank of Americe/Countrywide for the Worse lender to work short sales with in the industry!!

October 26, 2009 03:50 PM
Anonymous #34
Anonymous
Therese

Chase Bank has got to be #1 on the list of the WORSE responders on Short Sales.  My bid has been with them for over 5 months now and I haven't got a YES, a No, a co-offer, NOTHING !  They are lazy in my book and I can not see how it can take 5 months to decide whether your bid is good enough or not. 

BOOOOO to Chase BANK, they are lazy.

And by the way, I'm still looking and HOPE if find another property so that I can tell them GO BLOW, I don't want your property now anyway.

December 07, 2009 11:06 PM
Anonymous #35
Anonymous
anthony lopez

I can confirm that Chase is not waiving my deficiency on the 1st lien position. I have an all cash buyer and they won't budge. Guess it will have to go to foreclosure, any Ideas, or has anyone had success with Chaese at all??

January 20, 2010 11:34 PM
Rainer
91,941
Mike Linkenauger
Short Sale Realtor - Jacksonville FL
First Coast Realty Associates

It has been awile since this article about short sales with Chase was written.  We have done much better with other files.   Many times they will negotiate the deficiency, or it can be settled outside of closing for cheaply.

January 21, 2010 09:40 AM
Anonymous #37
Anonymous
Jaded Bend Resident

Well, we made an offer on a short sale last July.  The homeowners had three mortgages the third to the developer.  Guess what the developer made an offer lower than ours, but he got to negotiate with Chase the second and first mortgages.  So after months of waiting, we were told sorry the developer gets the house.  Is it ok to think the developer is a stinky greedy meany. 

March 07, 2010 02:20 PM
Rainmaker
63,396
John Flaniken
Realtor Santa Cruz Homes For Sale; Santa Cruz CA
American Dream Realty- Broker Associate

You said in your last blog that many times Chase will negotiate the deficiency, or it can be settled outside of closing for cheaply.  How is that done. 

We have been working with Chase and had full approval on the 1st loan (primary residence) but have been told they are unwilling to waive the deficiency.  The seller is not willing to proceed without the waiver.  We are in CA a non-recourse state and there is really no reason for Chase to not put deficiency waiver verbage in the approval letter.

Does anyone have suggestions on how we can get the negotiator or the the negotiator supervisor to agree to waive the deficiency? We haven't had much luck.

 

 

July 20, 2010 02:33 PM
Rainer
15,573
Jay Badru
Certified REO/Short Sale/Foreclosure Specialialist
Keller Williams Realty Cityside

In 2009, I responded to several comments on this post good or bad regarding Chase. This time I am posting a good new. I had a Chase Negotiator call me today 8/19/2010 to let me know that my short sale submitted on July 7th, 2010 has been approved and when do we want to close.

I was like huh. Fouty five days approval unbeleivable.

August 19, 2010 11:38 PM
Rainer
122,387
Mike Linkenauger
Short Sale Specialist Network

Chase Short Sales certainly go MUCH smoother lately and are much faster as well in general, especially when compared to a couple years ago!

Short Sale Help

August 20, 2010 04:08 PM
Rainer
15,573
Jay Badru
Certified REO/Short Sale/Foreclosure Specialialist
Keller Williams Realty Cityside

Mike,

You are right. Most of the banks these days are getting with the programs. AKA Realty check. Thanks my friend

August 20, 2010 06:15 PM
Rainer
122,387
Mike Linkenauger
Short Sale Specialist Network

Funny thing is, that in this original post I wrote about how good EMC and Aurora are to work short sales with.  Those two are the ONLY two lenders/servicers that used to be good at one point but have actually gotten MUCH worse over the last year or two!! 

Go figure!!

August 20, 2010 07:25 PM
Rainer
15,573
Jay Badru
Certified REO/Short Sale/Foreclosure Specialialist
Keller Williams Realty Cityside

I never had to deal with Aurora, but I heard Chase bought out EMC. I hope Aurora get with the program soon as well.

August 21, 2010 12:17 AM
Rainmaker
906,013
Tony Marriott
Associate Broker, REALTOR
Haven Express @ Keller Williams Arizona Realty

Let's hope this lender doesn't follow the path of Wells Fargo: No more extensions on approval letters - close by the approval date - or don't close at all!

September 18, 2010 12:22 PM
Rainer
4,933
Jean Marie Ragus
American Dream Realty

I've only had one experience with Chase. They were he secnd lien holder and Bank of America was the first note holder. In order to have no deficiency judgement against the seller, they wanted to have 30% of the amount that was owed. I was able to negotiate that down to about 18% of the amount owed. Both agents, Buyer and Seller contributed to make the deal happen.

March 31, 2011 10:03 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
91,941

Mike Linkenauger

Short Sale Realtor - Jacksonville FL
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the robot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information




Visit Property Management Pages

Property Management Resources

\"\" \"Short " style="overflow:hidden;" seamless scrolling="no" id="custom-widget-content" onload="resizeIframe()">Your browser does not support iframe.