I have a $180,000 short sale contract with a B of A first approval paying $6000 to Chase on their second. Chase has had the HUD for 2 months with the $6k payoff, now we are set to close in 4 days and Chase wants $30,000 to clear the $114,000 second. Does any one know how far Chase will come down off their demand. It will go to Auction on 3/6 and they will get nothing.. Are they bluffing when they say they don't care or will they come down and settle..
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There has got to be a workaround for this. It would be ashame to let the house foreclose for such a small amount. Is there anything we can do?
Since it's been determined that this Chase 2nd is indeed in the recovery dept...that's a whole new ball game folks!
For Chase's HELOC or 2nd loan dept is much nicer and more reasonable to settle. Once the loan gets "charged off" for non payment after x amount of months...the Recovery dept or Collections dept are a whole different country to deal with.
They go after depending on what OPEN LINES of credit...or monies...they see that the sellers have...
If they THINK the seller's have monies somewhere..they're going to want x amount of it, if they think they can get it.
What doesn't make sense though..is that when they DON'T get what they want...half the time, and it either forecloses or the recovery dept FARMS it out to a 3rd party collection co... they LOSE MORE money....
You DO KNOW that if they WORK out a payoff amount IN HOUSE...they MAKE MORE MONEY than if they have to FARM it out to a 3rd party co and PAY them one third to collect... so whatever the collection agency gets...CHASE will get only one third of it.... CHASE has a new internal policy to GO AFTER since the new year and COLLECT monies in collections HARDBALL...but these guys are LOSING files left and right and properties are going to foreclosure...etc...
the more that everyone BANDS together and LETS everyone on the internet and all of CHASE's INVESTORS...know that CHASE just LOST them another file.....of $6000 or money they COULD have collected....add that up to 300 files a day at $6000 they COULD have HAD... Jamie Dimon are you listening???
Bob,
Is the 2nd charged off?
Brett@ishortsalenow.com
www.ishortsalenow.com
310-684-6389
Brett are you saying you have more issues with charge offs? I do here and there but not overall. What is your experience?
Smitty,
As you said it isn't always the case, but we feel there is a correlation with loans in the recovery department needing higher releases to settle. From my experience charged off loans with Green Tree do this very often. Bob actually confirmed with me that the loan in subject is charged off.
What would you say the % is that most charge offs you're dealing with are looking for? I have a TON of CITI charge offs and they have been good - 5-10% of loan balance - I'm dealing with a collections firm now I cant get in touch with for BOA - they are horrible about getting back to me, but there is an auction on this property and I'm hoping they'll see they will get wiped out in 30 days if they don't accept.
I haven't dealt with a GT charge off so maybe that's why I'm a bit taken back. Are you saying that your charge offs want more than 10%?? Higher?
Smitty,
I feel that every case is different and it depends on many variables. At times they do take the industry standard %, but we also see recovery departments requesting 15-20% (potentially higher). If this is the case it is possible at times to get the % down, but we have seen some stand firm in the 15-20% range forcing contributions into play.