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Comment by Debra Savittieri on February 26, 2012 at 6:45am

Anita Sanda: Yes, here is the update regarding the Chase debt collection company-Five lakes Agency and the truths are below..

I got in touch (after 25 phone calls) with Chase BK Recovery Dept, and actually spoke in length about the  uncollectable debt being sold/ransferred to Five Lakes Agency. The debt is collectable if anyone wants to pay it- that is the truth...the seller can't and wont of course pay an extinguished debt - but it does not mean that a BUYER  won't pay (10% of the debt)  for the release of the lien. That is 'the catch and key' to your moving the sale to close.

Do NOT spend your time negotiating these debts with the BUYERS- Provide  the  2nd lien holder -Banks, the 10%  or heavens sake- to be paid for by the Buyers- or find another buyer who will.

Five Lakes Agency does NOT actually negotiate the short sale- they just put the paperwork together (short sale package and offer) and send it to Chase for approval. Once the debt goes to a debt Collection company it is NOT- NOT- let me say it again- NOT  to be negotiated- there is NO negotiating so Realtors, stop sending offers to pay them 'less than'  10%,  and your and yoru Sellers and Buyers  headaches will go away.  Five Lakes Agency DOES work for CHASE,  however 'Chase' is the intity who calls the shots and at this point- Chase  will NOT talk to anyone except who they hired to get the 10%, which is Five Lakes Agency. Chase is the one who instructs Five Lakes Agency 'how much they want and to NOT  submit to Chase anything LOWER than' the instructed  amount to  release the 2nd lien. These 2nd lien holders WILL not release the Lien until they get at least 10% of the note owed, unless the property goes into foreclosure. The BK debt is certainly uncollectable from the seller- but in reality it WILL and can certainly  come from the BUYER. Therefore- UP FRONT let your buyers know how much the 2nd lien holder is owed, and inform your buyers  that THEY will be  asked to  pay the 2nd lien 10% to get the 2nd lien released. It also  MUST be written into the HUD as  'Buyer contributes to the 2nd lien release'. Buyers are getting fantastic deals on MOST short sales so why are we spending so much time fighting with the Banks when BUYERS should pay more to get the deal done. Period. Stop feeling sorry for the BUYERS- while you are representing the SELLERS, which is the Banks dear Realtors. Push the buyers more and I promise you- THEY WILL Pay the 2nd Lien holder if you give them no choice. More and More Banks are hiring debt collectors, but it is the 2nd lien holder-BANKS that are calling the shots, so give them what they want and close the sale my friends...short sales are easy if you simply stop negotiating with the BUYERS and let the BUyers know what they MUST do.

If your Seller is a HAFA or Co-op Seller then the 2nd Lien holders will accept less- but if the sellers are NOT HAFA or CO-op approved. ...buyers-DIG  into your pockets because the sale will not close as a short sale without the 10% of the end note being paid, and that will be  paid most likely by the BUYERS.

Realtors- short sales are easy when you realize YOU represent the best interest of the Seller and Banks and that is all you need to know....If you represent buyers- simply tell them they 'most likely' will have to pay more money than their original offer, so simply  condition them to understand that and no one will expect more than what they are informed of.

Comment by Anita Sanda on February 25, 2012 at 6:08pm

Any developments on this one since your post? Have you been able to settle for less yet? Sounds like Five Lakes Agency is trying to strong arm the Seller and Buyer for more money? Please keep me posted on what happens...I have just learned that Five Lakes Agency was assigned to negotiate the short sale for a 2nd mortgage with Chase on one of my transactions (the Seller also had a chapter 7 BK discharged). I represent the Buyer so I am limited on information but I have been told by the listing agent that there is enough funds from the sale to pay off the 1st mortgage...the 2nd with Chase will be short. Five Lakes Agency confirmed that they have all the documentation needed for the short sale - we are now waiting for a decision. It will be helpful to know how your transaction goes... 

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