Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 20, 2011 at 4:51am

Send Chase a copy of the Final Discharge.  I suspect if you do not play this game with them, they will simply decline the Short Sale which is certainly their choice.

 

With more than 150 Short Sales processed over the past 5 years, I have not been able to close even one Chase transaction - even with the Executive Resolution Group involved.

 

Thom Colby

Broker / Negotiator

Newport Beach CA

 

Permalink Reply by James ferebee jr on March 20, 2011 at 5:03am

Sometimes it depends on when the BK was dismissed and when you are doing the short sale.

I once had one where the seller had just received the ch 7 and one month later the short sale was submitted and they did not want anything from the seller then another one where the ch 7 was granted 9 months ago and they wanted everything.

My motto is to give the banks what they want if you are to get what you want...

 

Jim

Permalink Reply by Steele V. Propp on March 20, 2011 at 5:12am

The basic incentive is that the seller will be able to do a short sale if he/she is cooperative. Chase can pull the plug on the short sale if their borrowers don't cooperate.

Remember that bankruptcy was ultimately only a delaying tactic. The bank does have a right to know this new financial information and frankly, financials are normal. This really isn't asking for anything odd, at least in my experience. Chase is basically saying "be straight with us".

And I have found them good to work with. Not giving the updated financials suggests that there is something that is being hidden. The banks are getting burned by a growing number of consumers who think that they can hide information from the "big, bad bank".

If the consumer has nothing to hide...

I know it is a bit of a hassle but if you understand the corporate mindset you will understand. Simply, these guys are covering their bases.

Steele

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 20, 2011 at 5:36am

Here's the deal..........

 

If Chase (or any other servicer / lender) asks for something, PROVIDE IT !  As the lender, they have the right to ask AND, TO RECEIVE the info.  If your client is hiding something, drop them like a piece of molten lava, it will never close and you are wasting your time.

 

Recently, I submitted a short sale package to a servicer (not Chase).  I thought I had submitted everything, including all bank accounts as per the seller..... a few weeks down the road, the servicer requested bank statements from two specific banks that were not included in the package I sent - - - I was confused, surely I had sent "everything".....  I asked the seller about these two bank acounts and got the answer... "oh,,,,, those too?".  How did the lender know about these bank accounts?  THEY WERE ON THE ORIGINAL LOAN APPLICATION !  ..... Yikes!

The good news was, one account had been closed about a year prior and the other account had an overdrawn balance over several months - we sent those statements and got an approval of the short sale within a couple of days.

 

At the end of the day, sellers (borrowers) need to be honest, candid, and stop playing games.  They need to provide what's requested and hope for the best result based on facts.  If an eyebrow is caused to be raised, the short sale will surely be declined - as it should be.

 

It's not our job to help the borrower / seller to deceive the lender / servicer.

 

Thom Colby

Broker / Negotiator

Newport Beach CA

(Are we having fun yet?)

Permalink Reply by Thomas McCombs on March 20, 2011 at 8:17am

Thank you all for your input.

In this case, the BK was filed before the listing was taken and the court OK'd that listing. By the time we got an offer the BK had been discharged, so the Chase loan no longer was an issue for the seller. No matter what happens the seller is off the hook. Even if the seller won the lottery there would be no liability on this loan.

I am asking the seller to provide the info, but I do not understand what Chase is hoping to find. I did send Chase a copy of the discharge, so that is not the problem . . .

Permalink Reply by Ben Benita on March 20, 2011 at 10:31am

Most banks want update financials b/c there is a HUGE growing market of funds that is buying up deficiency lien rights.

They purchase based on Seller's ability to repay.

T

hink of it this way, what if EVERYONE on this site put up $1,000,000 (in time we will all be able to RIGHT!!!!)

Anyway, say we raised $100,000,000 to buy deficiency liens from banks (Chase, B of A, etc.).  We would buy these based on:

 

1)  Hardhsip

and

2)  Financials

 

both of the above would help us decide on a Seller's ability to repay.

 

It is like suing someone......most persosn would only sue people that have cash.....makes no sense to someone who is broke.

Once you know how much cash they have, i.e., by viewing heier financials, you would then decide who to come after.....

 

Make sense?????

 

Permalink Reply by Thomas McCombs on March 20, 2011 at 12:38pm

Ben: Chase can not collect anything from this seller due to the BK discharge. What purpose is there in asking for updated financials?

Permalink Reply by Wendy Smith on March 21, 2011 at 1:50am

you have a negotiator who does not understand/know what he's doing.

 

I have a Chase ss wherein the debt was also discharged - Chase is willing to pay an incentive to the seller to cooperate with ss, no financials submitted at all.

 

talk to someone else

 

Permalink Reply by Thomas McCombs on March 21, 2011 at 1:58am

Wendy: That is what I believe, too. But I throw this out to the group to see if I may have missed something.

Thanks for the comment.

Permalink Reply by Mellissa Young-Ramirez on March 23, 2011 at 7:54am

My non-owner investor has multiple properties with Chase Loans, SFR thru multi units. Filed BK and BK'd corporation which held title to he rental properties. I waited until discharge was confirmed via online service because it gave me the BK info a whole month and a half sooner then the actual notices arrived in the mail. I printed out the income and expense sheets from the BK and submitted those along with most recent bank statements for ALL accts and a LOE for the outdated bank statements that pointed lender towards the BK sheets because that is sworn testimony in a court of law and the numbers were correct. I also pointed out that the bank statements became part of the BK and fell under Trustee control when it was a CH 11 status And eventually the accounts were closed for inactivity anyway. I explained that borrower cannot open a new bank account at present due to the recent BK filing and closure of prior accounts and then gave them the most recent bank statements belonging to her sister showing the borrower's deposits and withdrawals and proof borrower was recently added to sisters account. That did it for me. No more requests and I got my approval exactly 1 month from date of submission of a complete package. In fact I even have got a months extension on the very last day of approval deadline which was also surprising to me. For the record, no deficiency and $5000 seller contribution