â€œDo we want to stay, or do we want to go?â€ This needs to be the first question a homeowner tackles when dealing with the tough decision of what to do with their home that is underwater or unaffordable anymore. Once this question is answered, it makes the decision between a loan modification, deed in lieu, or short sale a bit easier. Typically the loan modification is approached first, and if it becomes unsuccessful, a short sale or deed in lieu may be the next best option. Chase has developed programs that are geared towards helping homeowners through this difficult journey and are taking steps to make the process easier.
JP Morgan Chase is one of the largest mortgage servicers in the Phoenix Metropolitan area; so many Valley residents are writing their checks to Chase each month to pay their mortgage. Currently Chase services over 225,000 loans in the Valley and is taking strides to enhance their short sale department in Arizona by recently adding over 10,000 positions. One thing to make clear here is that just because a homeowner writes a check to Chase, that does not mean that Chase owns their note, as Chase services mortgages for well over 100 different investors.
A Chase Loan Modification in Arizona
Chase has taken a stance of their #1 goal is to keep homeowners in their home in Arizona, Â and the first way of accomplishing that is through a loan modification. Chase uses a term of their â€œWaterfall of Optionsâ€ when referring to a Chase loan Modification, which would include:
1)Â Â Â 1)Â Repayment-adjusting the repayment terms
2)Â Â Â 2)Â Forebearance-giving the homeowner a â€œgrace periodâ€ without payments
3)Â Â Â 3)Â Interest Rate-adjusting the interest rate of the mortgage to make the payment feasible
4)Â Â Â 4)Â Term-extending the length of the repayment term to lower the monthly payments
Keep in mind that the average time of delinquency before a home forecloses in Arizona is 425 days, so there is ample time available to contact Chase and see if there is a loan modification program that works.
The reality is that 60% of loan modifications are failing, so Chase has stepped up their short sale departments across the country. In Arizona, last year Chase closed 5400 short salesâ€¦from January to March this year that number is well over 13,400, a HUGE increase over last year, which further supports their commitment to making the short sale process easier and more effective.
Chase has 2 Homeownership Centers in the Valley, where homeowners can meet one-on-one with a Chase Customer Assistance Specialist and further discuss their options.
Phoenix: 2501 West Dunlap Avenue Suite 160 Phoenix, AZ 85021 Phone: 602-943-7013
Tempe: 444 West Broadway Road Suite B Tempe, AZ 85282 Phone: 480-966-3101
70% of homeowners are within driving distance of a Chase Homeownership Center across the United States.
A Chase Short Sale in Arizona
When a loan modification isnâ€™t a possibility, sometimes a short sale may be the next best option. Â There are several benefits of approaching a loan modification first with Chase, such as:
-Chaseâ€™s Loan Modification Package is 75% of the material needed for their Short Sale Package (the additional material would be the MLS information, Purchase Contract, etc) which makes the submission process a bit easier and less work.
-Chase will assign a Customer Assistance Specialist to the homeowner when they apply for a loan modification, which will remain the homeowners point of contact if they decide to try a short sale. This makes things a bit easier as the homeowner doesnâ€™t have to start over with a new individual each time they call Chase.
-After attempting a loan modification, your loan number is already in the system with Chaseâ€™s loss mitigation department, so the short sale submission process is escalated.
Chase is actively participating in HAFA, which stands for the Home Affordable Foreclosure Alternatives. Homeowners that qualify for a HAFA short sale can receive a $3000 check at closing for relocation assistance. One recent significant change to the HAFA program is there is no longer the occupancy requirement, which further expands the range of qualified HAFA homeowners. More detailed information on the HAFA program can be found here.
Chase Proactive Short Sale and List Assist
Chase is now making the short sale process even faster with the Chase Proactive Short Sale and List Assist Program. A homeowner can now get their short sale â€œpre-approvedâ€ before they receive an offer with these programs. This takes a lot of the hassle and headache out of the short sale process, as many times valuations can come back quite different than a contract price, and negate the short sale altogether. I believe this is a fantastic tool to help both the homeowners and agents expedite the typically long and arduous short sale process. The average timeframe for an offer response is only 12-17 days through the Chase Proactive Short Sale and List Assist Programs!
Accelerator Program-For Chase Portfolio Loans Only!
Many people have been talking about the short sale incentives that Chase has been offering, up to $35,000 for the successful completion of a short sale. One main item to keep in mind is that this program is by Invite Only; meaning a homeowner needs to receive a letter by mail that references the individual incentive that Chase is offering to them. The problem is that many homeowners that are delinquent quit opening their mail and corresponding with their Servicer, and may in fact be missing a HUGE financial incentive being offered to them!
Here are some key components to keep in mind with the Accelerator Program:
-For failed loan modifications (must have a hardship)
-Invitation Only (by mail)
-$3,000-$35,000 eligible, offer amount will be in letter (based upon Chaseâ€™s foreclosure cost analysis)
-Letter MUST be included in Short Sale Package submission
-Letter has an expiration date but that can be extended on a case by case basis
One thing to keep in mind is that 85% of the short sale packages that Chase receives from agents are incomplete and inaccurate, which can potentially keep a short sale from being approved. Make sure that you are working with an experienced short sale agent that is familiar with Chaseâ€™s short sale procedures. Chase will soon be moving to Equator (system that Bank of America uses) which will eventually help expedite the short sale process further.
For more frequently asked questions regarding a Chase Short Sale in Arizona, here is their FAQ page:
For more information on incentives for a short sale in
Arizona please visit our website: http://www.IncentiveShortSale.com Â Â