Short Sale Dealing with Chase Bank

Short Sale Dealing with Chase Bank

Accountant · North Royalton, OH · Member since 2016 · 34 posts · 12 votes
Hello BP, We are trying to work with Chase Bank on a short sale. The existing mortgage is around $80,000 and we offered $25,000. We sent a preliminary letter of disclosure for potential short sale and are waiting to hear back. The issue is that the current owner (not occupying) is still making mortgage payments, so the bank thinks everything is alright. What they don't know is that the house has been deemed unsafe by the city and we've talked to the building commissioner to hault tearing down the property. Our understanding is that the bank will have to send out a broker to appraise the house in order to move forward. Is there any way that we can assist the process and for lack of a better word, "convince" Chase Bank that they should accept our offer or at least negotiate with us? Note: The owner wants to sell asap to get the property off his back and has verbally agreed to our offer. I know that doesn't mean much other than the fact he is motivated and the decision is up to the bank now. Thank you! -Austin
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Real Estate Broker · Jacksonville FL & Middletown CT · Member since 2008 · 1k+ posts · 632 votes
8y

Chase is not the owner of the property. Sending them letters or trying to negotiate with them directly is a waste of your time. The fact the property is worth less than what is owed or even that it is about to be torn down is not in itself a qualifying financial seller hardship. Because there is an entire short sale process involved that no one involved currently seems to understand, it would be best to bring this to a good short sale realtor, or attorney or negotiator to get it moving in the right direction. 

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  • Real Estate Broker · Jacksonville FL & Middletown CT · Member since 2008 · 1k+ posts · 632 votes
    8y

    Chase is not the owner of the property. Sending them letters or trying to negotiate with them directly is a waste of your time. The fact the property is worth less than what is owed or even that it is about to be torn down is not in itself a qualifying financial seller hardship. Because there is an entire short sale process involved that no one involved currently seems to understand, it would be best to bring this to a good short sale realtor, or attorney or negotiator to get it moving in the right direction. 

  • Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 44 posts · 16 votes
    8y

    Offer needs to be written not verbal. Seller needs to accept offer. Offer needs to be submitted to Chase short sale department along with all of the seller’s financial/hardship documents, Chase will order appraisal or BPO to confirm that your offer is realistic, Chase will review seller’s situation to see if they qualify for any sort of assistance. Simply being underwater may not be enough of a hardship for a short sale to be approved. Final approval will ultimately be up to the investor.

    There are other/additional factors as well. For example, the property may need to be listed for sale prior to accepting your offer and may need to be in MLS prior to accepting offers, etc. so I do agree with the above comment that it is usually best to contact a local negotiator/attorney who can walk you through what the next steps are. Wouldn't hurt for the homeowner/seller to open the line of communication with Chase about their intentions to get the ball rolling.

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

    Do you guys have an experienced shirt sale agent involved? If not, stop, start over.  Not sure what a “preliminary letter of disclosure....” is, never saw one in a short sale. 

    It’s always easier to get a short sale reviewed if the owner has stopped payments. No matter the value of the asset, if the owner has assets and the ability to afford the payments, getting an approval is slim. 

  • Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
    8y

    Many times when borrowers are current, the servicers do think everything is alright. They are in the lending business and who doesn't like when people pay their bills on time? Also, short sales require real estate paperwork, seller financials, etc so not sure if you are goign about this the right way.

  • Real Estate Broker · Orange, CT · Member since 2013 · 951 posts · 218 votes
    7y

    I've done lots of short sales and never heard of a "preliminary letter of disclosure for potential short sale".   Sounds like a fancy way of saying you're clueless. LOL  (sorry)

    You need to send Chase's Short Sale Department a "3rd Party Authorization" and request to initiate a short sale.  All the facts about the house should be included in the "Hardship Letter" portion of the Short Sale Package, and should also be detailed with the Appraiser that comes out to value the property.

  • Member since 2019 · 2 posts · 0 votes
    4y

    Hello, I am a Real Estate Broker, last Fall I listed a condo and received an offer for $185,000. This amount falls short of what the owner owes by 7K (CLOSING COSTS NOT INCLUDED) The seller agreed that this is probably the best offer she could get and accepted the offer. Because the seller would be heavily in debt after the closing and would have to take out a loan to complete the sale this has created a stand still of the process even though the buyer has paid earnest money and hired a property inspector and R E Attorney. Several days after the offer was accepted the owner learned from her lender that she is qualified for a Short Sale. I am wondering what to expect moving forward .

  • Real Estate Broker · Jacksonville FL & Middletown CT · Member since 2008 · 1k+ posts · 632 votes
    4y
    Quote from @Brian Edward Murphy:

    Hello, I am a Real Estate Broker, last Fall I listed a condo and received an offer for $185,000. This amount falls short of what the owner owes by 7K (CLOSING COSTS NOT INCLUDED) The seller agreed that this is probably the best offer she could get and accepted the offer. Because the seller would be heavily in debt after the closing and would have to take out a loan to complete the sale this has created a stand still of the process even though the buyer has paid earnest money and hired a property inspector and R E Attorney. Several days after the offer was accepted the owner learned from her lender that she is qualified for a Short Sale. I am wondering what to expect moving forward .


     I can’t imagine going through a short sale in order to save $7000. Totally not worth it. But if you really want to do it it’s going to be a 4 to 5 month process minimum with a lots of extra steps and you will be doing the work unless she hires someone. My recommendation is to find another way. It’s not worth it for this amount of discount. 

  • Member since 2019 · 2 posts · 0 votes
    4y
    Quote from @Brian Edward Murphy:

    Hello, I am a Real Estate Broker, last Fall I listed a condo and received an offer for $185,000. This amount falls short of what the owner owes by 7K (CLOSING COSTS NOT INCLUDED) The seller agreed that this is probably the best offer she could get and accepted the offer. Because the seller would be heavily in debt after the closing and would have to take out a loan to complete the sale this has created a stand still of the process even though the buyer has paid earnest money and hired a property inspector and R E Attorney. Several days after the offer was accepted the owner learned from her lender that she is qualified for a Short Sale. I am wondering what to expect moving forward .

     Thank you for your reply Minna ,can you please expand on this and explain what my client can expect ?

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