Short sale after Chapter 7?

Hi all,

Homeowner went through Chapter 7 -- everything was discharged. Homeowner got a letter from Chase saying they were eligible for $20K by doing a short sale.

Homeowner also has a HELOC with Citibank -- that debt would have been discharged as part of Chapter 7, right?

So they wouldn't have to be approached about the short sale?

Anyone have any clues on this?

Let me know.

Thanks.

P.S. We are working with a RE attorney -- I guess my question is I am not sure what forms package I should be putting together for the HELOC. Thanks.

Tags: $20, 000, 7, Chapter, Chase, sale, short

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Permalink Reply by Donna McClelland on December 19, 2011 at 5:37pm

If you are working with an attorney, the attorney should be able to answer your question.

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Permalink Reply by Ludora Cooper on December 21, 2011 at 2:03pm

Hi Coleen, Do you have a contact or more information on this Outreach Program with Chase? You didn't say but I'm assuming your client was "not" in Foreclosure jeopardy with Chase? Wondering if this could work for my relative that's in a Ch.13- But only because Chase was attempting to Foreclose.

Appreciate any feedback..

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Permalink Reply by William C. Black on December 27, 2011 at 5:11pm

The Chase Outreach is for a small pool of loans that from what i have been told were loans that they would be challneged finding the actual Note for from the Washington Mutual days of chaotic closings and improper loans (fraud). These have nothing to do with BK and the investor that owns them bought at a discount already and the "incentive" is much more affordable to them then trying to foreclose as in some states they require the actual note in advance of foreclosure proceedings. One thing that is important is Chase is a servicer of many other investors paper- so when one person has good luck with a "streamline" type of short sale its just because that specifc investor has limited barriers and wants to make it fast and easy to get what proceeds they can. Throw in a Fannie Mae HAFA and they now have to jump through a huge criteria and depending on training and level of competecny for the negotiator makes a difference on timelines and success.

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Permalink Reply by Ludora Cooper on December 27, 2011 at 6:34pm

This information is "crucial" I have a relative that really might fit this scenario with Chase. She has filed a BK ch.13 because they (Chase) were going to foreclose after "not" giving a Permanent Loan Mod that was suppose to be for 3-months but went on for 9-months and she continued making her trial payments. Now her attorney has filed an adversarial proceeding against Chase for exactly what you sited "no" proof of who owns the note that came from WAMU. You would think with this being the case Chase would settle it before going before a judge and give her a new permanent loan which is all she really wants. Thanks for the valuable info. I suppose a homeowner could call and ask about the Chase Outreach Program?