Foreclosure in Kissimmee>Question Details

Dmac, Home Seller in Kissimmee, FL

Will Chase ever grant a Deed in Lieu of for an investment property?

Asked by Dmac, Kissimmee, FL Mon Mar 28, 2011

I own a second home in Florida. It is currently listed for short sale at $145K (I owe $212K). This is the second time in a year and half that the property has been listed for short sale. The house is an investment. It is used for short term rentals near Disney. When the real estate market crashed, so to did the short term rental market. Right now I am one month (March) behind in my note with Chase (Freddie owned). My credit has already been hit do to the last time I tried a short sale and failed (could not find a buyer at $175K). Is Deed in Lieu and option for me? This is not a primary home. I am gainfully employed as is my wife. We have $14K in the bank, 401K plans, and a house with $75K /- equity. Any thoughts..

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Hello!

I have a short sale processing company and we process short sales for Realtors, Attorneys, and other Title Companies. We can process your short sale and use our strategies to get the balance of the debt forgiven. We can design a plan to sell your property via short sale to include a good exit strategy from your loan.

If you talk directly to the bank and do not explain in a strategic way why you want to exit out of this property, they will try to get money from you and or give you a deficiency at the end because they know you are selling because you are not making money off the short term rental and because the property is upside down.

Let me know if we can be of assistance.

Javier Rodríguez
Partum Services LLC.
Short Sale Processing Services

Business Development Manager
Real Estate Broker
Lic: BK703443
Certified SFR Short Sale and Foreclosure Resource

O: 407.373.0063 | P: 407.301.3401 | F: 407.373.0064 | eFax: 407.264.6260
E: jrodriguez@partumservices.com
A: Main Office: 13538 Village Park Suite 260 | Orlando, FL | 32837 USA
Behind The Ale House in Hunter's Creek
0 votes Thank Flag Link Wed Aug 3, 2011
Note to Mark L. - I have to say I agree... I can't disagree that I made a very poor investment and compounded that by going into it without doing my do diligence. The house has been renting, but at a price that makes break even impossible. It is a pool house and I am on VRBO. Occupancy rate on the house has been less then 50% the last 5 years. Maybe you are right that I am not doing enough to market the house... or maybe I am not charging enough... In any case I have had enough..
0 votes Thank Flag Link Tue Mar 29, 2011
No professional can render an opinion on behalf of another professional.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Mar 29, 2011
Note from Dmac - Odd thing just happened. I received a call from a Chase Negotiator who said she was assigned to my Deed In Lieu file. She was telling me I need to send her a bunch of items within the next 7 to 10 days. This included:

1). Letter of request for a Deed in Lieu

2). House current occupancy

3). House past occupancy

4). 2010 tax return plus W-2 and 1099 form (if any)

5). Copy of incorporation paperwork

6). Pay stubs

7). Bank statement

8). Title cleared - currently in the name of McHale Partners - they want just my name on the title

9). HOA fee schedule


I then told her that I was going for a Short Sale and not a Deed in Lieu. She told me that it was her mistake and that they would be closing the file for the Deed in Lieu and sending the file to the Short Sale Department. Agian, pretty odd as I have never mentioned a Deed in Lieu to anyone at Chase. My original question concerning Deed in Lieu on this board was just that - a question. She commented that it looks like the house has been for sale for a year and that the last BPO is out of date and of no value.
She did say that I needed to clear the title before Chase would do anything with the request. I was told that I would need to re-submit all the Chase Short Sale paperwork as noted on the web site (which I submitted in early March). She commented that I would be expected to contribute to the mortgage since I have a signifcant amount of money in the bank. I told her I had $14K in the bank and do not consider that a significant amount. She said it was enough to make some payments (comment noted).

This is an investment home (see back ground information in the question I posted). She said that Freddie owned my loan and they consider market value to include 3 sold properties within a mile of the house or within the same community. Do you think we can justify a sale $130K to $145K based on recent sales in the community? Hopefully my Realtor will be able to justify the listing price and/or whatever it sells for...

My questions is this - would I have been better off going for the Deed in Lieu or Short Sale?
0 votes Thank Flag Link Tue Mar 29, 2011
The problem with your commentary is notion that there has been a "crash of the short term rental market". That is simply not a true statement. Orlando set records for the number of visitors last year. Obviously we do not know your individual circumstances, but assuming that your home is a single family pool home, then you should be able to cover your mortgage costs. I have clients with mortgages of that size on single family pool homes who do cover their costs. Sounds like your problem is marketing and getting enough bodies into your investment. How hard do you work at that? Are you on VRBO? What other sites are you on? Success in the short term rental business is directly related to how much work the investor is willing to put into the marketing of the product.

In direct answer to your question, my answer would be why should they? You have not made any case for a hardship, just a case for either a bad investment or a bad business plan. Investing in real estate is just like investing in the stock markets. Let's say you bought a stock or mutual fund and it's value fell $100,000. Would you go back to the broker who sold it and ask for your money back? Sorry that your investment has not worked out, but that is the nature of investing. The value of your investment can go up or down.
0 votes Thank Flag Link Tue Mar 29, 2011
Hi Dmac. It depends on your specific circumstances. However it has been my experience that the lender would much prefer a short sale over a DIL. Lenders do not want to own real estate. They want money.

If you have only missed one payment thus far you have quite awhile before a foreclosure and plenty of time to find a buyer at market values and get a short sale negotiated. Keep pushing towards this goal.

You and your agent are welcomed to come join us at http://ShortSaleSuperStars.com We have almost 6,000 members helping each other muddle through the short sale maze. We have a group set up specifically for Chase that may help you in your situation. There is no cost. We'd love to have you.

Good luck to you. Keep pushing toward the goal...a successful short sale
0 votes Thank Flag Link Tue Mar 29, 2011
Only time will tell, but as the market changes it becomes less likely.
Web Reference: http://truesarasota.com
0 votes Thank Flag Link Tue Mar 29, 2011
You might have some other options provided you know who the note owner is.
0 votes Thank Flag Link Mon Mar 28, 2011
Everything is negotiable, it just depends on who you talk to and how they feel, that is why were in this mess.
0 votes Thank Flag Link Mon Mar 28, 2011
Hi Dmac,

I am sorry to hear that your home had been listed as a short sale and not sold the first time around. Typically when a short sale home is listed at the right price, and the paperwork is filed at the Bank's loss mitigation department properly right away after the listing is placed on the MLS, the property is typically sold easily. They may take 3-4 months, although they are happening somewhat faster now, but it should not have been the headache that you are experiencing. Sometimes agents that are not really familiar with the short sale process take on listings that they shouldn't have, and that can result in improper price placement, etc. We have listed and sold many short sale properties, and we always make sure that the home is priced at the best value, but not under valued, so the bank can see a good effort is being put forth, and then do a $5,000 price reduction every two weeks until it receives an offer. If you feel confident that the agent you are working with is experienced in closing short sale homes, then maybe suggest doing a price reduction every two weeks until you get enough activity to get an offer. As far as doing a Deed In Lieu, it would be better to be able to get the home short saled completely, as with a short sale you will be able to buy another home in 2-3 years, as opposed to a foreclosure where it takes about 5-7 years to qualify. A Deed In Lieu is somewhere in between that timeframe. Please let me know if you want me to look up your listing to see if it is priced appropriately for the area to sell. Typically if a short sale is being handled properly, selling it should not be a problem.
Thank you! The McDonah Team - themcdonahteam@yahoo.com
0 votes Thank Flag Link Mon Mar 28, 2011
I am wondering why the short sale didn't go through last time. You should be able to short sale this property. We have closed short sales in Kissimee. We are a professional short sale service. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Mon Mar 28, 2011
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