Comment

Comment by David Dee on November 29, 2009 at 7:25pm

Catherine, my wording is very similar in that it states, "Chase will agree to release its security interests in the above collateral upon receipt of $3000 in certified US funds. However, it also added the extra line I had written below about the 'deficiency balances' which the borrower will still be responsible for. In this case, it appears that I have to renegotiate with them to remove this verbage about pursuing the deficiency balance. Was that the original verbage that Chase gave you or did you have to ask them for this revision?

Comment by Catherine Myers on November 29, 2009 at 7:18pm

David, the wording in my Chase approval for a second recently was:

Chase Home Finance LLC agrees to release its security interests on the above account and forgive any deficiency balances upon receipt of 3,000 in certified US Funds.

This was on a second totaling 110k.

Comment by Catherine Myers on November 29, 2009 at 7:13pm

Hi David, not if it is a non recourse 2nd, i.e. original purchase money.

Comment by David Dee on November 29, 2009 at 7:10pm

Katerina, it appears that Chase is a tough cookie to bend as far as waiving the deficiency. From all your 2nd lien with Chase, they have not been willing to remove the deficiency? It must be state specific.

Comment by David Dee on November 29, 2009 at 7:08pm

Catherine, in CA even if the 1st foreclose, I believe the 2nd can still go after the owner for the full balance of the 2nd since they have not exercised their one action rule. This is what I have read but don't know if that is the real case. Have you heard about the one action rule?

Comment by Katerina Gasset on November 29, 2009 at 7:04pm

Catherine- You are right, it is all about the state you are in. In Florida, not going to happen with certain servicers. We get deficiencies removed all the time from other banks and servicers but not chase.

Comment by David Dee on November 29, 2009 at 7:03pm

Catherine, I'm in CA which is also an anti-deficiency state. Mine is also a non recourse/original loan. The 2nd is willing to accept 3k out of 80k from the 1st lien holder to release the lien. However, they have the wording in the approval letter which states the following:
"The seller will still be responsible for all deficiency balances per the terms of the original documents."

Comment by Katerina Gasset on November 29, 2009 at 7:03pm

We have had attorneys threaten them, fight them, we have negotiated till we are blue in the face- no luck with Chase removing deficiencies because of their PAS agreements with the note owners. We have a very good negotiator at chase that we get for all our deals except for freddies- and we have an off the work hours relationship with him- we can not divulge him but he has kept us in the loop with all this stuff regarding chase servicing. He says he has never been able to get management to waive the deficiency in the state of Florida.

Comment by Catherine Myers on November 29, 2009 at 6:59pm

David, what state are you in? I got a second approval from Chase recently that forgave all deficiency due to the fact we are an anti-deficiency state and it was a non recourse/original loan. Each state is different though. The rep told me specifically this was a letter for California. Your state may be different. If your clients walk away and let the first foreclose, will they THEN be forgiven for that second? In California they would, so there is "incentive" (unfortunately) to walk away in those instances for some people. But I do believe other states can pursue deficiencies.

Comment by David Dee on November 29, 2009 at 6:57pm

Katerina, are the 2nd willing to remove the verbage about the deficiency judgment?

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