Replies to This Discussion

Permalink Reply by Ben Benita on May 18, 2010 at 2:22pm

4 things to try:
1 -- see how much cash it will take to make it go away? Many times throwing some cashola at the ivnestor will make them remove the language
2 - Seldom used, but VERY effective, get in touch with the legal department at Chase and discuss having them remove it. There are some hoops to go through, but, it often works
3 - Simplest - ask your negotiator how long he/she will keep the file open while you look for a new Buyer. Tell them:

"I realize your ivnestor needs the right to file deficiency, but, teh Buyer is fed up and wants to withdraw now b/c of the continued delays...... ___________(negotiator), can we keep this file open for a few more weeks while we try to work something out?"

4 - Ask about just converting to a deed in lieu (this is of course a bluff). Tell your negotiator (and also his/her supervisor via e-mail):

"In light of the ivenstor wanting to file deficiency, my Seller would now like to just deed the property back to you via deed in lieu......can you explain what we need to do in order to convert..."

Again, if the bank thinks for a SECOND you will actually do this, and just let the home go, they often come around and will bend on whatever you need.....

Keep Us Posted!!!
Sincerely,
Ben Benita

Permalink Reply by Katerina Gasset on May 18, 2010 at 3:10pm

The State Statutes still prevail in most states. Always look to your state statutes first. The removal of the deficiency language in the state of Florida does not mean that the bank has given up their statutory rights under the statute.

Permalink Reply by Melinda Edenfield on May 24, 2010 at 4:19pm

Chase didn't address deficiency at all on my approval letter. One lien. Buyer coming in with $3k as they have about $30K in the bank. I am hounding them to put language in there that they won't come back after my clients and finally got a response. My negotiator told me today that my clients need to send in a written request to find out who the "investor" is then I could "google" the investor to find out whether or not they will be going after people for deficiency. That Chase, can not and will not ever discuss deficiency as they are the "Servicer" only. I have other Chase transactions and this is a first! Any suggestions on how to get them to give me this in writing? I love the Google comment, like I am seriously going to believe what I find on the internet as opposed to something in writing from their company! (AZ)

Permalink Reply by Gwen Mark on May 27, 2010 at 11:23am

I used the "my client spoke to his attorney and was advised to not sign anything with that language. He was advised to let it foreclose instead. I'm sorry, but I can't advise client to go against attorney advice." Make sure you send proof of unemploment so they understand there is no more money. If client does have say $1000 to offer, that could be enough.

Permalink Reply by Laura Marshall on May 27, 2010 at 11:27am

Thank you. I'll try it...since it is actually true! My client did speak with her attorney, and in California, if the bank uses a non judicial foreclosure (which they always do), there is no right to seek a deficiency after the sale.....even though is was a recourse loan.

Permalink Reply by steve Letterman on May 28, 2010 at 9:36am

I have a deal right now (investment property-duplex) where the negociator is asking for $5000.00 to proceed with the short sale. I responded to his request for clarity: (a) If the 5k is paid will they waive deficiency (b) Are they still paying the 2nd 3k (not same lender)-He responded by saying they will not waive deficency and if Seller is requiring it that he will shut down the file now! Question: I know I need to go up food chain to do the fight for them to waive deficency; however if I did not agree (for the time being) that the Seller will accept the approval letter as it stands, the negociator will shut down the file and there goes six months and my chance to climb the food chain. As a side note they (chase) are still paying the 2nd 3k.
What to do?

Thanks,

Steve


Ben Benita said:

4 things to try:
1 -- see how much cash it will take to make it go away? Many times throwing some cashola at the ivnestor will make them remove the language
2 - Seldom used, but VERY effective, get in touch with the legal department at Chase and discuss having them remove it. There are some hoops to go through, but, it often works
3 - Simplest - ask your negotiator how long he/she will keep the file open while you look for a new Buyer. Tell them:

"I realize your ivnestor needs the right to file deficiency, but, teh Buyer is fed up and wants to withdraw now b/c of the continued delays...... ___________(negotiator), can we keep this file open for a few more weeks while we try to work something out?"

4 - Ask about just converting to a deed in lieu (this is of course a bluff). Tell your negotiator (and also his/her supervisor via e-mail):

"In light of the ivenstor wanting to file deficiency, my Seller would now like to just deed the property back to you via deed in lieu......can you explain what we need to do in order to convert..."

Again, if the bank thinks for a SECOND you will actually do this, and just let the home go, they often come around and will bend on whatever you need.....

Keep Us Posted!!!
Sincerely,
Ben Benita