Wells Fargo short sale, have approval, ready to close but just before that, SUPRISE, CHASE 2nd that the seller never said was there.
Is there a good approach to getting Chase to give a quick approval on a 2nd? I have never had a 2nd just appear before closing and man am I out of magic to get this one done! I believe its about 40K on the second.
Getting all my documents in line for contacting them in the morning.
I'm open to suggestions...please
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Just curious as to why this did not show up on a title search earlier on?
Ron -
Been there, done that, not fun..... Most likely this is newer construction ??? Evidently, many builders when they provided purchase financing, the vast majority of 2nd loans were not recorded. Here in Southern CA, many 1st mortgages were not recorded either. Without a doubt the owners know there is a 2nd but don't tell the Listing Agents. We, as Listing Agents check title and nothing is there.
I was on the buyers side of a similar situation - BofA first, Chase (unrecorded) 2nd. The difference for us was everyone knew the 2nd existed even though it was not recorded. Our problem was the Listing Brokerage owned the Title & Escrow Companies and tried to close without paying Chase. I got it stopped so my buyer wouldn't have a problem later on.
If the 2nd (Chase) has been in default for a while, it's likely been sold / transferred to their collection company. Most likely they will not release for anything less than 20% of the UPB (this happened to us). The 20% ended up coming from the agents commission ($12,000) because the seller couldn't / wouldn't pay, and the Buyer was already paying $20,000 of past due HOA fees.
And,,,,,,, it took three additional months to get a resolution, an extension of my buyer's rate lock almost cost her an additional $6,000.
The last thing to hit us was an indemnity declaration the Title company wanted from the sellers which they would not sign....
Good luck my friend, you're in for a long haul.......
Cheers,
Thom Colby
Broker
Newport Beach CA
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