Foreclosure in Orlando>Question Details

Devon, Home Seller in Orlando, FL

What should we expect in mediation court with Chase??

Asked by Devon, Orlando, FL Wed Apr 21, 2010

Have been in short sale process with them for 20 months. At one point they accepted an offer (we have had several close to BPO) then negotiator quit and it all fell thru. It was our primary residence we have no other assets (other than small retirement) We are scared of deficiency judgement . Our loan was conventional with 100K down, our home decreased in value 50%. We were both laid off/unemployed 11 months. Chase has constantly said one thing and done another, it has been a nightmare, we do have attorney for mediation

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Just attended a hearing for 'Notice of Foreclosure and Final Judgment' (a bit longer title than this but this should do to get the point) and explained we had an offer in with the bank negotiator at the accepted BPO value, the judge extended the foreclosure date to get it done.

As long as you are working with the bank and doing all you can if you are doing a short sale, have a legitimate offer in at the bank to purchase the property it's never too late.

Hope this helps,

Broker Dave
GRI, ePRO, Real Estate Broker & Realtor

Community and Family Values
Web Reference: http://OrlandoHomeStore.com
2 votes Thank Flag Link Thu Apr 22, 2010
I wish you the best. The fact that you are both unemployed is not going to help. It sounds like has not done a very good job of handling your case and that will go in your favor, but what are you expecting from the mediation? It sounds like chase has place the foreclosure on hold for 20 months and their was one deal that fell apart because of chase, but chase does not even have to consider a short sale if they do not want. The best I see from any mediation (as a non attorney) is a grace period to continue the short process for some time period. Get a history of everything you have done and what chase has done so your attorney can address it.

Hope you accomplish your goal in the mediation.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
1 vote Thank Flag Link Sat May 1, 2010
Devon, talk to your attorney and dont pay much attention to comments on this site.
1 vote Thank Flag Link Wed Apr 21, 2010
Also Devon... you may want to immediately move back into the house if you're no longer living there. The IRS will in most cases not require you to include as income the amount "forgiven" and reported via 1099 if it is your Primary residence.
0 votes Thank Flag Link Sun May 2, 2010
Devon,

There is no reason why you should not have a contract with a buyer close to market price after 20 months!

I would think a mediator may smell "fraud" and immediately recommend foreclosure. There's no reason why an owner should not have a contract within 3 months on a short sale, unless there is fraud going on with the seller or the listing agent (without the seller's knowledge).

Also so you know.... Chase probably does not actually own your mortgage... they are most likely the "middleman" servicer for Fannie Mae, Freddie Mac or a pool of investments.

The good news is you may be able to get up to $3k to help you move on to your next rental. There is a new short sale incentive program effective April 5th and if your mortgage is owned by Fannie or Freddie you can absolutely get relocation expenses. The other "investors" that own your mortgage may also allow a relocation expense.

I'm curious to find out why your attorney thinks you have any hope of keeping the house if you have no income and obviously you or your listing agent cannot get it sold in 20 months.
0 votes Thank Flag Link Sun May 2, 2010
Devon,

There is only about a week until the First Time Homebuyer free $8k expires so you should be able to get a contract "above" current maket value right now.

Ask your agent to immediately update your listing to indicate your short sale was previously approved. Then ask her to update a Comparative Market Analysis and price it just below value.

You should be able to get a contract immediately--unless you are working with an unscrupulous agent who is attempting to get a significantly below market price for an insider friend!
0 votes Thank Flag Link Thu Apr 22, 2010
You need a time line and all the documentation you can provide, it is great you have an attorney. I would say Chase is at a disadvantage here, judges have had it with uncooperative banks especailly with people like you that did it right and just got tied up in the fall out of the greed that put the real estate market in a tall spin.

Good Luck
Bob Patrick
Buy a home after foreclosure expert
0 votes Thank Flag Link Thu Apr 22, 2010
Have you considered contacting one of the local investors and approaching them with your short-sale? Also, you might consider asking your attorney about helping you to negotiate a deed-in-lieu with your lender (assuming you only have a first mortgage).
0 votes Thank Flag Link Wed Apr 21, 2010
Devon,

Go in with all the documentation you can, sit and brain storm the chain of events from the start until now and put it into a spread sheet and give copies to your attorney.

Mediation is there to help you, if you have looked hard for a job, stayed in touch with your bank it should work out, go in with your head up listen to your attorney and answer truthfully.

My suggestion is if you're going through a short sale keep a diary and all doc's between you and your mortgage lender as it may come in handy.

Broker Dave
GRI, ePRO, Real Estate Broker & Realtor

Community and Family Values
Web Reference: http://OrlandoHomeStore.com
0 votes Thank Flag Link Wed Apr 21, 2010
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