Chase is paying my seller to short sale his home

I have a seller that has a first and second lien with Chase.  The first has offered him $30k to short his home and the 2nd has offered him $10k.  This is on top of the $3k from the HAFA program.  Have any of you heard of other lenders offering so much cash to sell instead of letting a home go into foreclosure???

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Permalink Reply by MeLisa Minter on March 29, 2012 at 8:26am

One of my negotiators at UTLS (BOA Servicer) did inform me that they offer various amounts depending on what state the property is in.  She's even done some SS with a $30K incentive. However, all my sellers have gotten here in Texas is between $750 and $3000. 

Permalink Reply by DeLisa Rose on March 29, 2012 at 9:47am

Hi, Chase and BOA both have outreach incentives to assist with motivating the sell of the homes. This is separate from the HAFA incentive and Chase's incentive can be as much as $35,000 while BOA is as much as $50,000. The homeowner is not allowed to apply for this incentive. The homeowners were mailed letters offering them to participate in the program. UTLS, has been given the accounts for some of the Florida homes which are eligible. The seller will get paid at closing and when the agent sends in the HUD, please be sure to add the incentive on it (made payable to the seller). The owner can use this incentive to pay other bills, fees or liens, but only after the closing and the solicitation check is issued 1st to the seller.  I hope this helps. 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 29, 2012 at 2:15pm

In the beginning, Wachovia / World / Wells were doing something similar but that has ended. 

 

My understanding is these large incentives are being offered to borrowers where the Note and or other original Loan Documentation is missing.  In your case, it was probably an original WaMu loan and those docs are long-lost.  Chase needs to get these loans off the books and they can't package or sell them.

 

Permalink Reply by DeLisa Rose on March 29, 2012 at 4:14pm

Hi Thom, no, this info is not true. The lenders have money that they have to use and the issue with the short sales is that the owners don't care, they have lost everything, their credit is blown and many people have what we call "strategic default" were they "play" the system, delay foreclosure and live for free for YEARS!!!! The incentive is money that needs to be used and is being used to encourage the sellers and the sell of properties. Chase is not the only lender and it has nothing to due with the note. Crazy part is several of the owners are already involved in short sales and need to be informed that they are receiving the incentive.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 29, 2012 at 5:03pm

DeLisa,

 

Why would any lender "out of the blue" offer such huge incentives to a very small group of borrowers.

Permalink Reply by DeLisa Rose on March 29, 2012 at 5:14pm

BofA sent out approx 650,000 incentive soliciations over a 4 month period. That really isn't a small group. Chase is offering incentives on a large population of their securitized non GSE files. If you have done a short sale(s) with a seller who has no incentive and then a short sale with a seller who is receiving 20 or 35,000 you will understand. It definitely makes the transaction move more successfully, stimulates the economy and it cost the banks less money to pay out and get them sold vs servicing them while people squat for years. Pay them to move or is they sit there until you FCL, which is much much much more costly for the bank.

 

Permalink Reply by Kevin - Greenville, SC on March 29, 2012 at 7:58pm

Currently working a Chase $5000 'incentivized' Short Sale right now.  Too bad there really is no incentive, because the BPO/RMV is not in line with FMV.

Permalink Reply by Kevin Donaldson 714-931-8500 on March 30, 2012 at 9:51am

I too have a deal that Chase offered my client 30K. My file was already approved when the closing agent called me to have me revise my HUD1. When I asked what the change was he asked me to add 30K on the HUD as an incentive to he seller. Can you guess my expression on the phone. What a wonderful conversation I had with the seller. She was almost in tears I could tell on the phone.The closing agent also confirmed the solicitation was to a certain number of clients. My guess is certain files they do not want coming back to them as this file was originally a WAMU loan and probably one of those Stated Income Option Arm loans Wamu was famous for.  My seller is excited because it wil jump start her new life. Boy if I could only have access to that mailing list..lol

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