Foreclosure in 20744>Question Details

Familyguy, Home Seller in 20744

Best options for a Short Sale on A Chase Mortgage.

Asked by Familyguy, 20744 Fri Oct 2, 2009

Hi All, I have a question about a chase mortgage, you all seem to be a very knowledgeable bunch so I thought I'd throw it out there. I've been in my house for 3.5 years now. Last year I refinanced into an 30yr FHA loan at 6.5%. I owe 152K on my mortgage. The neighbor next door has a 4 bed 2 Bath newly remodeled home he has listed for over a yr at 150K and is getting offers in the 130K's. Mine is a 3 Bed 1 Bath that needs a lot of work. I was going to list it but it seems pointless since I'm at least 20K upsidedown going by the way his is. So, a short sale seems like my only option. Here's my question. I drive an hour each way to work, my wife stays at home with 2 kids, the house is way too small at 1000sq ft, we've over extended ourselves and we've cutback the best we can. The ONLY reason I can even pay my mortgage is considerable amounts of overtime. I'm Killing myself, and I wonder why if I can just rent a nicer bigger place 5min from work for $400 less a month. So what should I do??

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Answers

3
You have a couple options.

I wouldn't waste time with a loan modification...they won't do it, can't do it for many reasons...

You could list as a short sale...with Chase you will have to show some hardship and show you have excessive obligations...not difficult. Could take 4 months....but its much better than a foreclosure.

If you want to stay in your home, you can simply fight any foreclosure attempt with a number of good arguments....Chase is a Servicer with no standing to foreclose.

Send a Qualified Written Request to the Lender to validate the debt. Push the burden of proof on them.

Don't walk away!
0 votes Thank Flag Link Sat Oct 3, 2009
Hi, I agree, you can try a loan modification first but if ultimately you really just want to move, I would consider a Short Sale. Short sales do have pros and cons. It can potentially be damaging to your credit if you intend to purchase another house soon. However, it''s an option that alot of people are opting for because they really want or need to move and want to sell. Based on what you've said about your neighbor's home, I don't think you will have problems with your bank's appraisal of the home, which greatly influences whether your short sale gets approved or not. If you have more questions or are interested in discussing the short sale process in a little more detail, just shoot me an email: tsdeleonard@kw.com. Good luck.
0 votes Thank Flag Link Sat Oct 3, 2009
First thing you should do is see if you can qualify for the Gov't Making Home Owership Affordable Plan to get you loan modified in the 2-3 % range to lower your payment. With a Chase loan mod, the bottom rate wold be 3% for the Gov't plan, it is 2%...your rate will depend on your monthly balance sheet of income and expenses to see what you qualify for. By default, Chase will try to qualify you for the Gov't program before their own.
If that doesn't work or you don't qualify for the loan mod, you should pursue a short sale only if you and your wife agree that moving is what you want to do. Short sale approvals are contingent on the BPO value and the amount of discount off of that value by the investor - FHA.

If you have questions, go to my faq page for more information or shoot me an email for clarification.
Tom Hinz
0 votes Thank Flag Link Fri Oct 2, 2009
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