Replies to This Discussion

Permalink Reply by Ben Benita on July 27, 2010 at 7:47am

if Chase is owed $150k, I would be SHOCKED fi they agree to $3k or $5k....expect to give them $10k minimum on $150k. You definitely have some work ahead of you, and, in order to hel, would need to know where you are in teh process.

To handle teh first and second lien payoff issues, i would STRONGLY suggest sending in 2 different settlemetn statements, the one to B of A, I would show $20k to the second lien, on the statement to Chase, I wuold show only $3k....on your fax cover sheet to BOTH lien holders, I would note:

"I think the respsective lien holders will agree to these payoffs"

This spread gives you some negotiating room.....
You can contact me off here for a better game plan if you wish.

Permalink Reply by Alisa Martin Pepper on July 27, 2010 at 11:55am

Hi Ben,
We are just starting this one up. I just want to be sure I am giving it the best chance to close. Doing 2 HUD's is a great idea.

For sure the 2nd won't take 3-5K, but I know that is what the 1st tends to offer.

Any other techniques are appreciated!

Thanks,

Permalink Reply by Ben Benita on July 27, 2010 at 6:16pm

Also on the HUD, be CERTAIN to add in for taxes and HOA dues, if they are paid in full now worries, if there ARE delinquent dues by the time your short sale closes, you have your backside (and that of your Seller) covered against any surprises.

Things you MUST know up front:

From your Seller:
Do they have cash to contribute
Will they agree to a promissory note (most lenders are "asking" for these)
Are they aware of any other liens currently on the home

From the Servicers:
Who the Investor is -
if payments are current (If late is there a foreclosure date)-
if there is mortgage insurance on the loans -

Other than that, nothing really tricky until you get into the process.....you can get most of your basic questions answered on this site, and, contact me directly if you run into trouble...

Permalink Reply by Dianne Slutsky on July 30, 2010 at 5:55pm

I have a similar situation and Chase is demanding $30,000 up front. BofA has agreed to sell for $580,000 on a $975,000 mortgage and will not allow more than $3,000 to Chase. At this point, I have referred my client to a bankruptcy attorney to decide if they should try and bk now or sign a note and bk after the fact. It is my understanding that if they bk now, it will release the liabilty of the 2nd loan but the lien will still remain. In the past, I had a similar situation but Chase wanted $10,000 and the Buyer agreed to pay $7,000 directly to Chase and BofA contributed $3,000. That situation was an all cash transaction. It might be a problem if the Buyer had to show the $7,000 payment to Seller's lien if the Buyer's lender had it on the HUD. Any advice on getting Chase to reduce the $30,000 demand?

Permalink Reply by Jacqueline Walker on August 1, 2010 at 5:32am

I have a short sale with a Chase HELOC that is now being worked by Oxford MS. Outstanding debt is $56k. We have approval from BofA on the 1st with a $3k contribution to 2nd. Oxford is saying they will not submit for approval unless they get 30% of outstanding amount for lien release or 70% if sellers want waiver of deficiency judgement. Sellers have no $$. Any strategies that might help this move forward?

Permalink Reply by Mark Stafford on August 3, 2010 at 8:50am

Hi Dianne I just finished up a deal just like yours. First B of A and second was a massive HELOC with Chase that was in "charge-off" status.
I had to contact a VP at Chase to get out of charge off and to a negotiator.

B of A, of course, only would give Chase $3000. The HELOC was for $250,000 so you know that wasn't going to work.

The Chase negotiator said they would not "take 1 cent less than $50k". I started at $3k and kept going up to $20k. He said I am not even close. I then went to $25k and he actually responded in 5 minutes and said we were warmer. We went to $32,000 and it was approved.

Now B of A would only allow $3000 on the HUD, so I emailed my closing agent at B of A and asked her how I could make it work. She approved the $32,000 on the HUD and we closed.

No problem! Just ask. Good luck! Mark

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Dianne Slutsky said:

I have a similar situation and Chase is demanding $30,000 up front. BofA has agreed to sell for $580,000 on a $975,000 mortgage and will not allow more than $3,000 to Chase. At this point, I have referred my client to a bankruptcy attorney to decide if they should try and bk now or sign a note and bk after the fact. It is my understanding that if they bk now, it will release the liabilty of the 2nd loan but the lien will still remain. In the past, I had a similar situation but Chase wanted $10,000 and the Buyer agreed to pay $7,000 directly to Chase and BofA contributed $3,000. That situation was an all cash transaction. It might be a problem if the Buyer had to show the $7,000 payment to Seller's lien if the Buyer's lender had it on the HUD. Any advice on getting Chase to reduce the $30,000 demand?

Permalink Reply by Ben Benita on August 3, 2010 at 9:16am

Mark - FANTASTIC -- CLASSIC example of NOT getting mad at hte negotiator (they only read from scripts and do as they are told).

Go to teh decision maker and you CAN get what you want almost every time.

Again, mark -- NICE JOB!!!!!

Permalink Reply by Mark Stafford on August 3, 2010 at 2:20pm

Thanks for the kind words Ben! I never get mad at the bank negotiator because i know something that is so top secret that if I told anybody I would be killed by hired assassins. Well here it is anyways.
THE LENDER WANTS TO DO THE DEAL!

I will constantly analyze all factors to hopefully get a good end result.

I do, do one thing that most agents do not, I properly educate and set expectations for all of my sellers. If you have a HELOC, you are going to have to bring $ to closing, end of story! If they are solvent and say no, I will not list the short sale.
Why waste your time?

Cheers! Mark

Ben Benita said:

Mark - FANTASTIC -- CLASSIC example of NOT getting mad at hte negotiator (they only read from scripts and do as they are told).

Go to teh decision maker and you CAN get what you want almost every time.

Again, mark -- NICE JOB!!!!!

Permalink Reply by Ben Benita on August 8, 2010 at 11:35am

Mark -- you are VERY smart to pre-screen short sale sellers, we have a full prelisting sheet we REQURIE agents to fill out if we are going to negotiate for them.

Your big secret - depends how you are defining "lender"

"Servicers" (who your Seller writes his/her check to each month) have NO MOTIVATION to get a short sale done, they get paid to Service the note and get paid MORE money when payments have been missed (when the note is considered "non-performing")....this is why you might hear them say "we need teh selelr to be late".....they again make more CASH in Servicing fees when payments have been missed.....exactly how hard to do you honestly expect them to work to get a short sale done and stop getting paid.

The "Investor" on the note, or group that actually funded, has EVERY motivation to get this done ASAP and this is why you REALLY need to find out who the Investor is on the short sale so they can be contacted IMMEDIATELY when issues arise, I show agents how to do this in my book and when I speak on short sales.

The above is the NUMBER ONE REASON short sales take so long, and, will continue to take so long.....

Permalink Reply by scott on December 16, 2010 at 3:22am

Hey I have the same problem right now, and my HELOC is with Oxford as well and in Charge off status.  How do I get it back to Chase?  How did you get with a VP over there to work with you and how do you get to them?  Please help 12 months this month with this short sale.  Please help me.....

Mark Stafford said:

Hi Dianne I just finished up a deal just like yours. First B of A and second was a massive HELOC with Chase that was in "charge-off" status.
I had to contact a VP at Chase to get out of charge off and to a negotiator.

B of A, of course, only would give Chase $3000. The HELOC was for $250,000 so you know that wasn't going to work.

The Chase negotiator said they would not "take 1 cent less than $50k". I started at $3k and kept going up to $20k. He said I am not even close. I then went to $25k and he actually responded in 5 minutes and said we were warmer. We went to $32,000 and it was approved.

Now B of A would only allow $3000 on the HUD, so I emailed my closing agent at B of A and asked her how I could make it work. She approved the $32,000 on the HUD and we closed.

No problem! Just ask. Good luck! Mark

-----------

Dianne Slutsky said:

I have a similar situation and Chase is demanding $30,000 up front. BofA has agreed to sell for $580,000 on a $975,000 mortgage and will not allow more than $3,000 to Chase. At this point, I have referred my client to a bankruptcy attorney to decide if they should try and bk now or sign a note and bk after the fact. It is my understanding that if they bk now, it will release the liabilty of the 2nd loan but the lien will still remain. In the past, I had a similar situation but Chase wanted $10,000 and the Buyer agreed to pay $7,000 directly to Chase and BofA contributed $3,000. That situation was an all cash transaction. It might be a problem if the Buyer had to show the $7,000 payment to Seller's lien if the Buyer's lender had it on the HUD. Any advice on getting Chase to reduce the $30,000 demand?

Permalink Reply by tonda hoagland on December 16, 2010 at 5:13am

I've just started a short sale with a similar scenario.  BofA 1st of $180,000, Chase 2nd of $50,000.  We just received an offer of $170,000.  Seller is in the process of applying for HAFA.  I've heard HAFA will kill most deals with a 2nd.  Would we be better to do a regular short sale and not pursue the HAFA at this point?