Chase 1st, PNC HELOC-SS rejected
FHA loan. Way underwater.
Chase said HUD denied SS.
Chase had file 6 months. Sd seller doesn't qualify because property was rented out previously within 18 months.
Borrower previously lived in home, moved out 5 years ago & was using as rental. Borrower lost his business, filed Chap 7 bankruptcy which has been fully discharged. Submitted offer 3/2013 to purchase which is $5,000 above appraised value. Chase took 6 months to decline offer. Borrower not able to reinstate loan. Chase sd will not approve DIL.
Chase saying there are no other options, house will have to go to foreclosure. HUD said will not approve for PFS but Chase can do regular SS. Chase said no.
It defies logic for Chase/HUD to foreclose when offer is on the table for more than property is worth. No sale date scheduled. My guess is in this county it will take a year or more to foreclose. Chase will have to maintain property & pay for foreclosure.
Any ideas or options???
Replies to This Discussion
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Permalink Reply by Kevin - Greenville, SC on
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A property that has been rented out in the last 18 months is NOT a disqualifier for an FHA PFS, but if a property has been rented out for more than 18 months Chase will have to send over a variance request to HUD.
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There is NO regular Short Sale for an FHA Loan.
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Permalink Reply by joe beauchamp on
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If you have not gone directly to HUD, do so. You are likely to get numbnutz response at first. If so, call back and state how the situation doesn't make sense. HUD escalates on a call back. You're likely to get a real analyst with a brain at that point. I would ask them about each boneheaded point. I assume Chase is just maximizing its income to the detriment of the investor.
I would file a complaint with OCC.
Depending upon your amount of drive and your time limit, you should complain to the state AG and corner a state senator. They seem to have some pull and Chase dragging it out then refusing to get $5K more for the investor (taxpayer) while continuing to get paid by the investor (taxpayer) should be hard for the senator to say "that's OK".
Chase does not pay expenses, the investor pays them and pays Chase to "maintain" the file. As in deposition to a lawsuit against Chase, at least 1 employee stated he was told that Chase is not in the loan mod business, it is in the foreclosure business. They supposedly get lots of money from the investor for each step of foreclosure, then they will get the property back as REO and continue being paid by the investor. Chase only gains money by dragging out and denying short sales. (And who is the investor for FHA/FNMA/Freddie? the taxpayer.)
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Permalink Reply by SE Davis on
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This happened to me once before with Chase.
I resubmitted the short sale package to Chase BK Department. After about 45 days they approved it for their Alt SS program, we closed it. It was one of the toughest and longest transactions I ever worked.
HOWEVER that client was a primary residence and they were still residing in the property for a year after BK discharge.
Think carefully about your scenario. Your client is not living there anymore, your borrower/seller already received maximum debt relief from the BK court and that investor will acquire high NPV post foreclosure without dealing with the "servicers" (Chase) complexities and nuances of balance sheet re-reporting and filing.
I would be more worried about PNC Bank handling of the same quandary.
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