My colleague is representing a seller with a VA loan through Chase, and her contact -- presumably a negotiator -- said they would accept a net payoff that was $3-4k below the VA required 88.13 percent. PLUS, they would give the seller $10,000 because he's active duty military. The price of the house is around $93,000. Chase told her they do that for all active duty military. Could this possibly be true?
I've never worked with Chase on a Compromise Sale, I know per VA Guidelines the Servicer can take less than the 88.13% but most wont becuase they won't be reimbursed for that difference.
Chase gave my client $15000.00 on a short sale. She actually receved a letter in the mail stating tha if she did a short sale she would get the money. She then called me to list the property.
At close of Escrow she received the 15K. Chase said their incentives go up to 30K Mind boggling
Chase offered to give my client $5,000, but the property won't sell at the price they are willing to accept (for now).
My colleague's deal closed. And Chase did pay the military seller $10,000. Seller had to bring about $900 to closing. Interestingly, that had to be separate from the $10,000 he received back. I've heard of sellers getting money back, but that's the first I've heard of a seller getting that much back on that low of a sales price, and on a VA short sale.
From what I understand (and I just closed one this way) now the seller can use the proceeds to cover liens, judgements etc as long as they write a letter stating what they want paid off and that Chase did not solicit them to do so. My seller got a 20k incentive and I negotiated 42k in liens and judgements down to around 16k and used the incentive and now seller is free and clear!