I've been waiting on a short sale as a buyer for the last 5.5 months.
The home has two mortgages.
The first bank approved my offer, and is offering the second bank, Chase, $5K to buy them out. The second bank has not even countered the first - instead they continue to put the owners through the ringer. They have asked for every bit of financial information dating back 2 years including their 401K's. This has gone on for two months now.
Has anyone had any experience with Chase? What do you think their strategy is here? It looks to me like they are building a case to possibly sue these owners for the outstanding. My thoughts are this should be separate from the short sale approval, since they can sue anytime.
What benefit would Chase have to not approve this short sale? I would think if this goes to foreclosure, Chase would get nothing, since the house would sell for less than what is owed on the first. At least with this short sale they get the $5K payout from the first and any incentives the government provides. The only think I can think of is them not wanting to take the loss on thier books now.
Does anyone have any idea what's going on? Do you think I have a chance of this coming through? Should I continue to wait?