Here is a Summary of the Situation:
Does anyone have a high-end contact at CHASE that might be more reasonable than the average Short Sale processor at Chase? I am thinking I may call a Foundation Expert to give me a quote as well, that might be better than a regular contractor. Also, thinking of getting Letters from Neighbor Home Owners about their Foundation Issues. Any other suggested Strategies or Ideas??
John, No surprise....
I've been in a similar situation previously with Chase. Is the investor Deutsche Bank? If so, you may as well walk away and not waste another minute of your time.
My similar situation - original loan amount $1.2M, Listed in low $700Ks. Fair Market Value on a good day when we started $575K, offer received was $535K. Chase / DB countered at low $700Ks. Property was vacated by borrower. Chase sent property preservation to "protect" the property. Property Preservation flooded the 4,500 sq. ft. house when they turned on the water to regrow the lawn but never went inside the house! However, they constructed a wonderful wooden structure to cover for the pool / spa.
Black mold accumulated for several months inside the house. Buyer reduced their offer to $380K based on all sorts of inspections and written estimates. Deutsche / Chase said NO. The City levied Nuisance Fines of more than $70,000 against the property for the mold and dead grass. Chase / DB took it back at Trustee Sale. Then, they put it on the market in low $700Ks where it sat for months. They reduced to mid-$400K's and still nothing. Finally the REO Agent dumped the listing after a few more months without a single showing.
At the end of the day, Chase doesn't budge on what they believe they can recover on higher loan amounts.
Who are you fighting for, the Seller / Borrower or the Buyer?
I've consistently had issues with Chase. I have prepped EVERY Chase buyer that they counter every time and that it's usually unrealistic. I've been able to fight a few Fannie backed but it's starting to just not be worth the aggrevation. I was talking with a short sale agent north of me who is in the midst of it now. Seller owes $325,000 and buyer offered $250,000. Property comps at $250,000 all day long. Chase countered at $350,000 which is above what is even owed!! Makes no sense.
agreed. My situation s owner owed $400,000 property worth about $250,000 based on recently comp. They asked $450,000. Unreasonable. None of the offer is above $300,000.
I have had the most success when I make the problem 'property specific' and not 'buyer specific.' When making the problem 'property specific' I point out all of the reasons why it is in the Lender's best interest to 'think the scenarios thru extremely carefully' before responding with their pat, trite 'knee-jerk' reaction. In the case that you are describing, the problems definitely are property specific - AND WILL AFFECT ANY AND ALL BUYERS in the market considering the purchase of the property. I also state, when my buyer walks, the Lender will continue to have to face this problem because now the listing agent and the Seller(s) are obligated to 'disclose' the inherent problems uncovered by Buyers' Home Inspections. I also point out to them that any buyer in the market - financed, cash or otherwise - will not be able to get insurance on the property - which basically makes the property un-saleable to the public at large; so, its in THE BEST INTEREST OF THE LENDER to study the remediation bids in depth, and agree to give the Buyer either a credit at closing for the cost to remediate the problem; or, to lower the price by the cost to remediate WHILE THEY STILL HAVE AN INTERESTED PARTY ON THE STRING TO TAKE THIS NIGHTMARE OFF THEIR HANDS before it becomes one of their foreclosure assets owned! (Another tactic which also seems to work quite well, when 'fighting fire with fire' is to discuss the local City's Building and Code Enforcement Department, and how the property has now caught their eyes - and maybe it would be best for them to unload the property to a buyer willing to accept the problems than to try to sell a demolished parcel of dirt or a condemned property collecting code violations and liens accruing at anywhere from $250 to $500 per day ...) I find this tactic will generally make them think twice and become way more willing to work with the Buyer and Buyer's agent than ever before! Whenever I have run across this 'brick wall' I also use the 'powers of Equator' messages....I just love to check off every single box available when I am sending one of these messages with the attachments! You never know who's attention it will get. **Pearl: The Lender's never, never, never, NEVER like to reduce the price! However, they will almost always give the buyer 'a concession' or a credit at close equal to the bid necessary to remediate the problem and off load the property to the Buyer. I learned this years ago about Fannie Mae REOs! So, I've tried that same principle with my Short Sales - and so far it's working very well for me. They want to 'show' a certain number as the 'reported sale price' so it 'looks good' on their report - however, the 'giveaways' (buyer repair concessions and such) do not seem to show up detrimentally anywhere, so I have learned to give them the choice of lowering the purchase price by the cost of the remediations; or, giving the buyer a credit at close - just so 'they can pick' and feel like they have WON the battle - and they always choose the credit at close....And, for everyone's information - I never, never, never let them lower the agents' commissions either! I just did this with a Bank Of America short sale listing on Equator, last week as a matter of fact, where the property had PBV piping thruout and would never be insurable in our Florida market which is just 10 days out of the start of Hurricane season...made it a 'property specific issue' affecting all buyers in the marketplace - and now we are headed to close with an excellent credit close and an extremely happy buyer this week; and, I am sure a relieved lender who will not have to deal with this mess as a foreclosure property! If you want to contact me for more information or help, my e-mail address is [email protected]