I have a short sale with a Chase HELOC that is now being worked by Oxford MS. Outstanding debt is $56k. We have approval from BofA on the 1st with a $3k contribution to 2nd. Oxford is saying they will not submit for approval unless they get 30% of outstanding amount for lien release or 70% if sellers want waiver of deficiency judgement.   BofA will not increase their contribution and will not allow any $$ to come from Sellers.      Any strategies that might help this move forward?

Tags: Chase, Oxford, Sale, Short

Views: 663

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Chase stopped using promissory notes a while back because no one paid on them, but you can still ask anyways. Maybe you can get an exception for the supervisor to move forward with a promissory note.
If not, then maybe the sellers want to fight the deficiency after the fact, usually, no attorney advice here, the collection companies will release the deficiency with offer of 30 cents on the dollar.
You have to explain to the sellers that HELOCs are way different than secured first loans. HELOCs can be charged off whether you do a short sale, foreclosure, etc. and then the collection company is still going to come after the homeowner.
Alot of your negotiating has to be about selling a deal to the HELOC. HELOCs are not going to get anything at a foreclosure sale and that is why they are charging their accounts off and going after people on the promissory note rather than the real estate collateral. It makes sense. But if the HELOC was taken out at the same time as the first loan for the sole purpose of buying down the down payment or to not have MI- then you can get them to be more reasonable. Remember they check the seller's credit report. The better the credit the tighter the squeeze. Also, if they notice that the homeowner takes out a HELOC and suddenly owns a Escalade, etc, that is a signal that they are going to want that loan paid back. You need to always ask the seller before taking the listing what they got their HELOC for and do they have evidence of let's say- remodeling the house, etc. Katerina
Katerina -- dead on...ALWAYS ALWAYS ALWAYS pre-screen your clients as to whether or not you should even take the listing. We now have a pre-listing form we REQUIRE agents we negotiate for to use (find out if the Sellers will bring or have cash for closing, agree to promissory notes, all kinds of stuff)

There is NOTHING worse than finally getting close and the Seller refusing to sign a promissory note, agree to tax consequences, etc.....as you are finding out....

:-)

What I would suggest - IF any of the monies were used home improvements, send in those receipts for negotiation purposes noting that the funds went to home improvements and NOT for a weekedn in Vegas.

I would first and foremost discuss the issue with the Investor on the first lien, as that $3000 is ALWAYS negotiable.


Find out if there is MI on the note and if so, who it is with and what the coverage ratio is

Find out if Oxford MS actually bought the bad paper at a discount or if they are merely a collection company, paid to get what they can.

See if Oxford will agree to a discounted promissory note and let you go to closing.

All the above, properly negotiated, SHOULD get you much closer than where you are now.
Thanks for the input and support on this one......we received our approval from the 2nd today!!

I know it was two years ago. But....did you get approval for $3000 ? I am going thru the same thing and Chase is unmoving.

Great! Good to know as we're submitting one to Sun Trust with Chase as 2nd with a heloc. I
Hi Jacqueline - I am curious to know what Oxford settled on for this transaction. I am going through the SS process now and chase charged off my $180k HELOC and sold to Oxford. GMAC is the first and they have agreed to pay 6% to the HELOC. Thanks very much.
I also have similar situation. BofA approved the lst with $3,000 to Chase. Today, Chase emailed that they would need $65,000 to release their lien on the $185,000 HELOC that was charged off. Any suggestions? The seller is willing to sign a partial promissory note but not $65,000 - what would be a reasonable amount to expect? Thank you
Ben,

The pre-listing screening sounds like a great idea and a MUST. Do you have a copy of that which you could send to me or post for other to use? It would be much appreciated. Thanks!!!

Ben Benita said:
Katerina -- dead on...ALWAYS ALWAYS ALWAYS pre-screen your clients as to whether or not you should even take the listing. We now have a pre-listing form we REQUIRE agents we negotiate for to use (find out if the Sellers will bring or have cash for closing, agree to promissory notes, all kinds of stuff)

There is NOTHING worse than finally getting close and the Seller refusing to sign a promissory note, agree to tax consequences, etc.....as you are finding out....

:-)

What I would suggest - IF any of the monies were used home improvements, send in those receipts for negotiation purposes noting that the funds went to home improvements and NOT for a weekedn in Vegas.

I would first and foremost discuss the issue with the Investor on the first lien, as that $3000 is ALWAYS negotiable.


Find out if there is MI on the note and if so, who it is with and what the coverage ratio is

Find out if Oxford MS actually bought the bad paper at a discount or if they are merely a collection company, paid to get what they can.

See if Oxford will agree to a discounted promissory note and let you go to closing.

All the above, properly negotiated, SHOULD get you much closer than where you are now.
BofA is not willing to allow more than $3,000 for a payoff to Chase Recovery. Chase is the investor and the most they are willing to settle is 20% of balance owed. I submitted all receipts to confirm that monies were used in construction of property, pool, landscapping, etc. After three weeks of negotiations, we informed Chase that the client will have to do a bk and possibly face foreclosure. Today, Chase stated that unless they received $36,000 total (BofA and seller contribution), they will not release lien and that we should send them the bankruptcy case number after the seller files the bk. It makes no sense; but they will not budge! The seller will be filing a bk but will also have to file a form for a release of lien after the bankruptcy discharges the debt. Assuming that BofA does not get a release of stay from the bankruptcy, we will try and short sale after the Chase second lien is discharged. Wish eveyone luck!

Timo Ketola said:
Ben,

The pre-listing screening sounds like a great idea and a MUST. Do you have a copy of that which you could send to me or post for other to use? It would be much appreciated. Thanks!!!

Ben Benita said:
Katerina -- dead on...ALWAYS ALWAYS ALWAYS pre-screen your clients as to whether or not you should even take the listing. We now have a pre-listing form we REQUIRE agents we negotiate for to use (find out if the Sellers will bring or have cash for closing, agree to promissory notes, all kinds of stuff)

There is NOTHING worse than finally getting close and the Seller refusing to sign a promissory note, agree to tax consequences, etc.....as you are finding out....

:-)

What I would suggest - IF any of the monies were used home improvements, send in those receipts for negotiation purposes noting that the funds went to home improvements and NOT for a weekedn in Vegas.

I would first and foremost discuss the issue with the Investor on the first lien, as that $3000 is ALWAYS negotiable.


Find out if there is MI on the note and if so, who it is with and what the coverage ratio is

Find out if Oxford MS actually bought the bad paper at a discount or if they are merely a collection company, paid to get what they can.

See if Oxford will agree to a discounted promissory note and let you go to closing.

All the above, properly negotiated, SHOULD get you much closer than where you are now.

Can someone give me the number to call in on for the Chase HELOC and fax number?   Can't seem to make it through Chase's phone system to the right dept.   Any help would be appreciated!

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