SS with Chase while current?

Question

Has anyone been able to get Chase to agree to a short sale while current on payments?  Has anyone been refused by Chase because they were current on their payments?

James Ward · Answer

We also approach every property the same way.  We present the offer direct to the lender and prove how it is a better business descision to settle.  We also get waivers for the homeowners.  I have ran into only a few times where the lender would not grant the waiver.  We also do not list the properties on the MLS. This does in turn net the lenders more money.  IT is good to see others are in the same school of thought as my company.

Dave P. · Answer

Also, lenders are REQUIRED to work with defaulting home owners now!
                        
                        YES, Banks short as well as do short refi's, better yet.
                        
                        Flipper,
                        
                        Can you explain how exactly lenders are "required" to work with defaulting home-owners?
                        
                        What legislation are you referring to?
                        
                        Home-owners are confused enough, it would probably be a good idea to reference any legislation that you are referring to.

Since I try to negotiate the lowest price possible, I have the lender agree to a deficiency judgement waiver against the homeowner.

Scott,
            
            How is the lender incentified not to pursue a deficiency judgment based on the fact that you are going for the lowest price possible?
            
            That seems counter-intuitive.

dmj4,

Lots of bad advice here, tread carefully.

James Ward · Answer

I also must agree.  We have brought to Chase two (2) different cases that both had the same problems.  As a matter of fact they almost mirrored each other.  The first was approved and moved through the system very quickly.  The other one never was approved.  No real reason why.

Donna J · Answer

We are the seller (hopefully). The property has dropped in value. Recently, one sold furnished for $190K and the one before that sold empty for $177K.  I think there has been another offer on one for $205K.

We owe $335K. We have been spending our savigs to keep it going and that will run out. They will be able to see that when they ask for statements.

My job has dropped me as an employee and has changed my status to self-employed.

Both the rental rate and days rented have decreased because of the economy and overbuilding in the area. It is a vacation rental property. There are lots of short sales there by both owners and builders. They have had quite a few auctions by builders, lately.

I have lost 2nd job business income due to businesses closing due to the econmony.

I have a Daughter starting college.

Our loan has been picked up by Chase from WAMU. We had called WAMU before the take-over about a Short Sale. We called WAMU/Chase again the other day and they told us to put it on the market. They are still in a transition phase.

Dave P. · Answer

I totally agree with Harrison.
            
            There are no "rules".
            
            On the other hand, (from a lender's perspective), if the property is worth the current note and the borrower is current on the mortgage payment, why allow a short sale? 
            
            The important part to remember is that not all short sales are created equal. 
            
            Would the lender accept a short sale with a net loss of $1?
            
            Of course.
            
            Would they accept a net loss of $100,000?
            
            That's a different question.
            
            To Harrison's point, you won't know until you work it all the way through.

Harrison Painter · Answer

I perform quite a few short sales, and I can honestly say that nobody can really answer this question definitively, regardless of what the specifics are.

Chase, and all other banks (not meaning to single out Chase), will probably give you a different answer themselves depending on what time of day it is.

Everything is so "bizarro" right now!!!

My advice is to contact the bank and try and work the deal. You never know what is going to happen until you try it!

This is just the reality of the current conditions we are challenged with.

Good Luck!

Dick Green · Answer

Explain a little more about your transaction.  
            
            Are you the seller or the buyer?  Why is the property being considered for a short sale?  Has it depreciated in value or, is someone just wanting a transaction with a larger profit margin?  Is the current borrower experiencing or about to experience some type of financial hardship?  Or, does the current borrower just.....umm...... no longer feels that they want to pay the amount that they originally agreed to?
            
            Even with  the current loosening and restructuring of existing mortgages, banks are going to scrutinize transactions to make a profit as well.  They will either perform a desk review or drive-by to determine value.  
            
            If the value isn't there, (don't quote me) but, I would guess that a short sale on a mortgage which is current on payments is highly possibie in today's market......even with Chase.  
            
            On the other hand, (from a lender's perspective), if the property is worth the current note and the borrower is current on the mortgage payment, why allow a short sale?