Posted by Russ Sims on December 21, 2002 at 15:57:17:
The best way to get a number from Chase is to call their regular customer service number and ask for the right department. You can get that number off the seller’s statement. And be prepared to be bounced around several times until , hopefully, you wind up with someone who can answer your questions. And once you find a helpfull account rep (and they DO exist), don’t get your hopes up on getting a name and calling that individual back for subsequent queries…I have almost never been able to get the same individual twice in a row. Even though it could mean staying on the phone for hours, it’s still worth the effort because eventually you’ll find someone to help you. Be persistant. If this were easy everyone would be doing it!
There is no set percentage that lenders will go down to when considering short sales. Keep in mind that a lender figures that if they get a home due to foreclosure, on average they’ll be netting about 70 to 80% of market value upon re-sale. They might get market value for the home once it sells but they have tremendous costs that come out of that: there’s the cost of going through the foreclosure. These costs include the loss from the non performing asset as well as attorney/court fees. Then there’s the real estate commission. So when you make a short sale proposal, don’t come in so low that the lender will make more by continuing with the foreclosure. Otherwise there’s no motivation to work with you. And of course it’s like any negotiation: you can start low and work with what they counter you with.
I use a very simple Loan Authorization Letter. It simply says: Dear Chase: I authorize you to release loan information regarding my account #123456 to Bob Smith. You may release any information to MR. Smith that you would normally release to me. Very Sincerely, Hank Homeowner, SSN#---------.
You can fax this letter to Chase (doesn’t need to be notarized) and figure on calling back in 1 to 2 working days as it will take them a bit of time to acknowledge it.
Good luck
Russ
I live and invest in northern Colorado. I have been following the foreclosure market for about 6 months, and found a deal that looks good. But the market has gone south on us here and I would like to have a little more equity to work with, just in case I end up sitting on this property a little longer than expected. The seller will be behind 3 payments on Jan 1. The lender is Chase, and they have not started foreclosure yet. There are no other leans, and the owner just wants out.
My question to all who are wiser than I.
How do I go about getting the lender to short sell this thing to me?
Re: Need help with short sale! - Posted by Ben (OH)
Posted by Ben (OH) on December 20, 2002 at 06:44:08:
Colorado has a 1 year redemption period, isn’t that correct?
Either way have the seller deed the house to you or your favrite entity. Get them to sign a lease, that is if they plan on moving. If they are moving then you can sublet to a renter/option buyer. You get cash while you negotiate for the short pay. Or, simply place a sign on the property FOR SALE, LOW DOWN, or whatever. When you find a buyer, offer the bank a lower amount, you get the spread.
Don’t be too concerned at this point of tha banks requirements for a short sale. It varies from lender to lender.
Above all, get a lien search/exam before proceeding.
Re: Need help with short sale! - Posted by Russ Sims
Posted by Russ Sims on December 19, 2002 at 19:18:06:
My experience with Chase was very similar to Phils: No one seemed to be on the same page and I find it amazing that corporations can flourish while suffering such incompetence among the ranks.
I doubt you’ll get far with any mortgage company in discussing short sales until that notice of default has been sent to the homeowner. The longer a home has been in foreclosure, the more receptive a lender will be to the notion of short sale.
As far as how to begin the short sale,you’ll need some or all of the following from the seller:
A letter explaining his situation (hardship letter)
His past 2 years tax returns (if available)
Financial statement
Two months bank statements
Two pay stubs (if employed)
Copy of sales agreement with you (at the price you’d like to buy the home for)
Estimate closing costs (net sheet showing shortage)
Loan payoff amount as of the anticipated closing date
Broker?s Price Opinion (comparable sales & listings)
Loan number
Chase’s short sale requirements may vary. You can get an “Authorization to Release Loan Information” form signed by the homeowner and you can call Chase directly and ask to speak to their loss mitigation department (or foreclosure dept). Ask them what their requirements are for considering a short sale and they can probably send or fax you something. Good luck!
Russ
Re: Need help with short sale! - Posted by phil fernandez
Posted by phil fernandez on December 19, 2002 at 16:52:59:
From my limited exposure in dealing with Chase Manhatten on a short sale, they are difficult to deal with. One, the left hand doesn’t really know what their right hand is doing. I had been promised one short sale number and then after making the offer, no we can’t take that.
Like any big outfit, they appear to be out of control. No two people are on the same page. Maybe it was my deal or perhaps others with experience with them can offer their take.
In my experience, they kept on changing the landscape once I made my offer to them. Finally I got fed up and refused to negotiate. No sale.
I think I know the answer to this Question, but what happens to the renters if the bank and I don’t come to an agreement on the price and they foreclose?
I’d hate to move someone in only to be thrown out a few months latter.
Thanks for the “to do” list, this is very helpfull in getting started. I Have never got this far with a seller before the lender had actually started the foreclosure. This guy just wants out.
Sounds like you have worked with Chase before, so I have a few more questions. I hope you or others out there could help me.
1.Is there a set % that they will only go down to. Like %50 or %70 of the value or the amount owed?
Do you have a Phone number for the Loss Mitigation Dept for Chase.
Is there a standard “Authorization to Release Loan Info” form, or if not do you have an example of one?
Does the form need to be notarized for the lender to accept it?
Thank you for taking the time to share your experiance with me. I have heard from many that Chase is a bear to deal with. I myself went rounds with them to get some M.I. removed from two of my loans that they had purchased from other lenders.
Maybe I can get the right hand to make the deal without telling the left hand.
Posted by Ben (oh) on December 20, 2002 at 15:24:14:
Depends on your lease. Should be a month to month. Discloe that the proeprty may be in foreclosure and they may have to vacate in the event of a sheriff sale.
If the property will be vacant it is better to have someone living there. Screen them properly and do regular inspections.