Will Client Do Better With Chase Recovery Department?
Our client with a Chase 1st has gotten approval on a purchase price of about $540,000. He owes over $920,000. Chase will not roll over. The negotiator wants $37,000 in cash at closing from the seller to provide full debt forgiveness. This represents 10% of the balance they are short, and the negotiator said that is the best deal she can put on the table in her position.
We informed her that although the buyer was once doing very well, his earnings are way off, his wife is ill and lost her job, and he has sold off practically everything he owns, including investments a lot of the furniture in his home to try to stay afloat. He claims he cannot come up with the $37,000.
At this point the negotiator said that if he wanted to close on the short sale they would allow him to close without making a payment at closing, however he would then have to work with the Chase Recovery Department on the balance due. She said they are set up to work out something with him that he can afford and implied that they can go lower on the amount - but the $37,000 is all she can do.
At the advice of his legal counsel, the client is adamant he must have full debt forgiveness, yet he also refuses to come up with the $37,000 to make it happen. I'm thinking that just getting the short sale done and working it out with Recovery is absolutely his best option. I believe that he might make out better and the worse case is they ask him for the same amount or put a prom note on the table which is not an option and doesn't thrill him anyway.
If he doesn't take the current deal, he goes into foreclosure, and he will not only be responsible for the $920,000 he owes Chase, but another $80,000 to Bank of America. (B of A agreed to full debt forgiveness for a $3,000 payment from Chase -- I was shocked!!)
What advice would you give? Have you ever had a client work with Recovery at Chase and get a better (or worse) deal?
Thanking you in advance for your wisdom ...
We informed her that although the buyer was once doing very well, his earnings are way off, his wife is ill and lost her job, and he has sold off practically everything he owns, including investments a lot of the furniture in his home to try to stay afloat. He claims he cannot come up with the $37,000.
At this point the negotiator said that if he wanted to close on the short sale they would allow him to close without making a payment at closing, however he would then have to work with the Chase Recovery Department on the balance due. She said they are set up to work out something with him that he can afford and implied that they can go lower on the amount - but the $37,000 is all she can do.
At the advice of his legal counsel, the client is adamant he must have full debt forgiveness, yet he also refuses to come up with the $37,000 to make it happen. I'm thinking that just getting the short sale done and working it out with Recovery is absolutely his best option. I believe that he might make out better and the worse case is they ask him for the same amount or put a prom note on the table which is not an option and doesn't thrill him anyway.
If he doesn't take the current deal, he goes into foreclosure, and he will not only be responsible for the $920,000 he owes Chase, but another $80,000 to Bank of America. (B of A agreed to full debt forgiveness for a $3,000 payment from Chase -- I was shocked!!)
What advice would you give? Have you ever had a client work with Recovery at Chase and get a better (or worse) deal?
Thanking you in advance for your wisdom ...
Replies to This Discussion
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Permalink Reply by Brian Peters Jr on
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See if you can bump your buyer up 15k and see if you can make that 30k + go away.
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Permalink Reply by Steve Early on
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Brian:
Thanks - this is an alternate strategy in the works, but the buyer hasn't been receptive. If Chase sees that the buyer is willing to pay another $15k for the house, why wouldn't the investor just counter the current offer by $15K and still go after the seller for the $37,000? That is our primary concern with this approach. We've seen lenders (not necessarily Chase) do this before.
Brian Peters Jr said:See if you can bump your buyer up 15k and see if you can make that 30k + go away. -
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Run it by your negotiator and see if they would be amenable to this strategy. Do a 'What if' Scenario. Not anything in a hud-1 or a contract. Just do a 'What If I could get you some more cash out of this deal, could you make this 37k go away?'
If that does not play out, try this: The buyer is willing to bring another 15k to the table for the next 48 hours if you will accept with deficiency or the buyer has decided to retract their offer.
We have got to quit playing the games that these bankers play bro man. YOU are in control, because you hold no duties them as a third party. Only duty you have is to your seller or buyer (whichever case). I am sure you are aware of this but I see so many agents forget, I love to remind them.
Cash is KING and they will bend or just retract the offer. -
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without deficiency
Brian Peters Jr said:Run it by your negotiator and see if they would be amenable to this strategy. Do a 'What if' Scenario. Not anything in a hud-1 or a contract. Just do a 'What If I could get you some more cash out of this deal, could you make this 37k go away?'
If that does not play out, try this: The buyer is willing to bring another 15k to the table for the next 48 hours if you will accept with deficiency or the buyer has decided to retract their offer.
We have got to quit playing the games that these bankers play bro man. YOU are in control, because you hold no duties them as a third party. Only duty you have is to your seller or buyer (whichever case). I am sure you are aware of this but I see so many agents forget, I love to remind them.
Cash is KING and they will bend or just retract the offer. -
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