Home Selling in 92649>Question Details

Mama08, Home Seller in 92649

What if a bank (CHASE) denies your short sale???

Asked by Mama08, 92649 Tue Sep 14, 2010

We have a buyer for our townhome and have been waiting 2 months for any info from the bank. They commented today that they would not let us short sale (the 2nd mortgage) we are still waiting for the answer on the 1st. We are not late on any payments but are wanted help before we ARE unable to make payments. We have laxed on other payments such as HOA's to make the mortgage payments. What if they so no all together?? Then what? We won't qualify for a loan mod. ????

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Mama,
I'm sorry for your situation, but you have lots of company right now. I have a short sale with Chase in process right now, but it's taking a lot longer than 2 months. Be patient, get good professional advice and don't give up. If the agent involved is not very experienced with short sales, ask for help from their broker or a third party negotiator. Don't take no for an answer, Banks need to be persuaded sometimes that the offer presented is truly the market value on the home, or at least better than they would get in a foreclosure sale.
Chances are as a second lender, they will only release title if you retain some financial obligation to them, a promissory note or other payment arrangement. You need to get legal advice as to how to best proceed. The first lender will likely only allow a token amount for the second lender, but the first lender is primary concern. Wait to see what they say before you make any decisions.
1 vote Thank Flag Link Tue Sep 14, 2010
Short sale is a way for home owner to avoid foreclosure on their homes and still be able to pay off their loan by settling with their lender.

Lenders vary in their requirements. Your first step should always be to contact your lender. However, most lenders require the following:

- Your payment is delinquent or is about to be. Most lenders will not work with home owners who are successfully making or can continue to make their loan payments. Each lender s policy is different, so if in doubt, check with your lender. Some will permit a short sale with no delinquency.

- You have a qualifying hardship. Examples that qualify are divorce, loss of a job, medical bills, excessive travel time to a job, etc.

- You have no other major assets. Lenders who see home owners with large bank accounts or assets are less likely to cooperate on a short sale. Retirement funds are not typically considered as an asset unless sizable.

- Note: Please PREPARE YOUR HOMEWORK CAREFULLY before you call and/or submit your documents to your lender to request for the short-sale

Please contact us if you need help - 100% of short sales get approved - at: 877-834-5678 or email your question at: Tonywilson@lawyer.com

Best wishes.
1 vote Thank Flag Link Mon Sep 15, 2014
Were you denied a modification from the Home Affordable Modification Program (H.A.M.P.) or did Chase try and keep the modification process in-house? You may have to start the process over.

Depending on when and where your home loans were originated? Here is another suggestion! Chase Bank was part of a huge US Government class action law suit and settlement. Qualified homeowners can file a claim directly through Chase. Call Chase and ask them to connect you with their representative, who can assist you with qualifying for the National Settlement Debt Relief program. If you are qualified under the settlement guidelines, funds may be available to reduce your principle etc. Not sure about the exact $ amounts! Each case is different!

If you qualify for any of the above program, then call chase again and ask about Principle Reduction Assistance (PRA), and/or Keep Your Home California. You must be very specific when calling Chase or any other bank for assistance. I'm not sure if any funds are still available in the CA program.
Good luck!
0 votes Thank Flag Link Mon Aug 26, 2013
Recent legislation requires lenders to give you written notification explaining the grounds for any denial. What was their stated reason for this denial? Is the 2nd loan a "Home Equity Line Of Credit", "Hard Money" or Purchase Money Loan? Is it backed by FANNIE or FREDDIE? Was the loan originated by Chase or by one of the companies they acquired? Was the loan obtained to purchase your primary residence or another property? The individual circumstances of each short-sale can effect the outcome. Plus, occasionally a rejection, does not always mean absolutely not! Since prices are currently rising fast, the actual investor may be saying no to prolong the short-sale process. Once interest rates rise and the market shifts, they will become more cooperative. To properly answer a question of this complexity, I’d need much more information. Depending on your specific circumstances and loans, there may be other options available too.
Best regards,
Raymond
0 votes Thank Flag Link Mon Jun 24, 2013
This question is 1.5 years old !

Again CA is different from CO.
0 votes Thank Flag Link Wed Feb 15, 2012
A short Sale is not about relationships. Please fellow "agents". "DO NOT CONFUSE this homeowner" so you can waive your feathers!... Chase doesnt need any related "BROKER" pr broker with "relations" in Chase. that is nonsense. To do or accept a short sale. It's all about timming, the offer has to be around a fair market value, sent at least 60 days before the scheduled sale date, with that in hand, they will postpon the sale date so thew will review the short sale package which of course, has to be complete. After that they will accept it or counter it. A few years ago, CHASE would foreclose on a property with a pending SS but not anymore.
0 votes Thank Flag Link Wed Feb 15, 2012
Hi,

It is all about relationships and structuring the deal. Chase is not the worst bank to deal with.
You can watch our foreclosure prevention panel event tomorrow night (Weds) and ask the question to one of our panelists.
If your 2nd lien is large and you want to keep the town-home then you me be able to "kill your 2nd".

Hit me back if you would like more info.

Good luck,

Keith
Web Reference: http://bayarearesource.com
0 votes Thank Flag Link Tue Nov 15, 2011
Richard, this thread has been dormant for well over a year.

I'm not sure what you were hoping to "contribute" with your remark: "If you did not qualify for a loan mod, chances are good that you do not qualify for a short sale", but it isn't even close to being correct, anyway.

Hopefully, Mama08 was able to get a correct answer a year ago, and has been able to move on.
0 votes Thank Flag Link Thu Nov 10, 2011
If you did not qualify for a loan mod, chances are good that you do not qualify for a short sale.
0 votes Thank Flag Link Thu Nov 10, 2011
I have a saying "Never take no for an answer when you know it is the wrong answer". In this case, the answer you received may very well be the wrong answer. Chase is currently encouraging short sales for those who cannot or do not want to do a loan modification. You might just not be talking to the right people at the bank.

Your agent needs to escalate your file! Are you doing a HAFA short sale? Are you in the Chase List Assist program? Are you working with an experienced short sale listing / negotiating agent? These are some of the most important factors to getting a short sale through Chase. Also, are the 1st and 2nd TDs with the same lender?

What you might be hearing from the 2nd TD holder is that they will not approve a short sale until the 1st TD approves it. They want to know what is being offered to them from the senior lien holder. You and/or your agent should get the specific reason for Chase denying the short sale. Then you need to get to the decision making level at Chase and convince them that they would get nothing in a foreclosure (assuming that is the case). If you would like a more specific review of your situation, please feel free to contact me. There is no cost or obligation. You can call me or contact me through my profile. Dare to Dream.

Shel-lee Davis, QSC®
Certified Distressed Property Expert – CDPE®
Short Sale & Foreclosure Resource – SFR®
Certified HAFA Specialist – CHS®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes Thank Flag Link Thu Sep 16, 2010
Mama -

The only thing I would add to the thread; It is difficult to get lenders to pay back HOA fees and the penalties on HOA add up fast. I would recommend keeping up the HOA. You may be trying to save your credit so work closely with your agent to strategize on what to pay and not. If the second is not willing to short sale because they are being paid, need to work on how to motivate them to accept a short sale. Good luck.

I agree with Emily, a seller contribution should be avoided unless you have a ton-o-money sitting around.
I also agree that CHASE is one of the slowest on short sale approvals.

CJ
0 votes Thank Flag Link Wed Sep 15, 2010
Dear Mama08:
Your objective should be direct communication with your mortgage lenders (both the 1st and 2nd TD). You know your situation best.
Other options are available - get with your real estate agent. If that doesn't work -- find another agent. Good luck!
0 votes Thank Flag Link Wed Sep 15, 2010
You should be getting your questions answered from your real estate agent, if not, ask his broker to tell you. Finally seek legal advice from an attorney who specializes in real estate law. A professional cannot give you solutions with the very limited information you provided nor should they since you are already being represented by a real estate agent, aren't you?
0 votes Thank Flag Link Tue Sep 14, 2010
Mama,

There are many potential reasons why a bank, and more importantly the investor which owns your mortgage may deny your short sale. The most common of these include too low of a purchase price, your ability to repay the mortgage and the banks own financial objectives. These are items which a strong short sale listing agent should assist you with. Not paying your HOA's can be one of the biggest mistakes to a successful short sale.
0 votes Thank Flag Link Tue Sep 14, 2010
Chase is a pain in the butt. BUT, they do want to do a short sale for you & if they're being difficult, it's because your 'case' isn't being properly presented.

Example: I just closed on a short sale where the previous agent gave up, the owners were under the assumption that the bank didn't want to do the short sale, the bank were idiots, the bank only wanted X price & to top it off, the bank wanted a $35k cash contribution from the seller.

I was able to present a better case to the bank, wiped out the cash contribution the bank wanted, set them straight on pricing, and helped the owner avoid foreclosure & we're now closed & the seller doesn't have to worry about any future deficiency judgment in the future Plus they will be in a position to purchase again in 12mos w/ FHA & 3.5% down at market rate.

I would be happy to give you a 2nd opinion on why Chase is being a big bad bear and why they may be telling you they're "not going to let you short sale your 2nd", that's ridiculous. You can get a short sale done without missing payments. If you have excessive negative equity, a loan mod is not going to make sense, even if you do get 2% interest for a 5yr term.

Shoot me an email, as I won't check back on this same Trulia thread.

EmilyKnell1@yahoo.com
562-430-3053 cell
0 votes Thank Flag Link Tue Sep 14, 2010
I would recommend that you have your agent talk to the lender and find out what it would take to get the short sale approved. Perhaps they want more money than is being offered by the first. If they simply refuse to short sale, I would ask for their reasoning and see what you can do to satisfy them that short sale is the best option for all parties.


This is not intended as a solicitation for properties that are already listed.
0 votes Thank Flag Link Tue Sep 14, 2010
If you are denied a short sale, ask what they need. The Lender probably needs more information than you provided or your reason was not stated clearly enough. Talk to a Realtor who has done at least 5 successful short sales and get them to advise you.
0 votes Thank Flag Link Tue Sep 14, 2010
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