Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on January 30, 2011 at 8:13am

Maria -  

If the borrowers / sellers have filed their latest tax returns they will need to provide them to Chase.  If they did not file them, they just need to write a simple letter stating they have not filed.  If they did file and will not provide them - then they are not cooperating in the short sale process and the bank will likely not cooperate with them either.   Did Chase have the sellers / borrowers sign an IRS form 4506-T like so many other lenders are requiring?  If yes, Chase will get the returns directly from the IRS electronically.

 

If the sellers are not going to cooperate by providing their tax returns, you need to rethink if you want to continue to waste your time with these sellers.

 

Best of luck,

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Maria Evans on January 30, 2011 at 8:54am

Thank you Thom. I am sure about that... I just started this one and don't even have an offer. I was just curious to find out if someone was ever able to approve a SS without showing Tax Returns.

Thom Colby said:

Maria -  

If the borrowers / sellers have filed their latest tax returns they will need to provide them to Chase.  If they did not file them, they just need to write a simple letter stating they have not filed.  If they did file and will not provide them - then they are not cooperating in the short sale process and the bank will likely not cooperate with them either.   Did Chase have the sellers / borrowers sign an IRS form 4506-T like so many other lenders are requiring?  If yes, Chase will get the returns directly from the IRS electronically.

 

If the sellers are not going to cooperate by providing their tax returns, you need to rethink if you want to continue to waste your time with these sellers.

 

Best of luck,

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Steve Early on January 30, 2011 at 1:13pm

We have had a couple of sellers that either said they would not provide financial information (like tax returns), or have concluded that "I have sent them enough bank statements ... I'm not sending any more."

We tell them we can't help them any more and if they don't change their tune, we withdraw our involvement. You're wasting your time if they won't cooperate. If you do get an offer, and the seller is uncooperative, they will deny the short sale in my experience which is why we withdraw our involvement.

 

Permalink Reply by Debra Enos on January 30, 2011 at 6:07pm

I recently closed a Chase short sale and my client didn't have his recent 2 years tax return done.   He just has to write a note stating that his accountant was working on them. He was about a month away from having them done. He did have to sign a 4506-T.  We never did turn them in...Chase just wanted the letter.  It didn't slow down the short sale at all. 

 

 I think it was because it the bank (and negotiator) was benefiting.  I was able to get an good, strong offer in a few days, stop the foreclosure that was scheduled days after, negotiated a private 2nd, & 5 liens (including IRS).  I got an approval in 24 hours.   The negotiator I got was great and easy to work with.

 

Talk to your negotiator, see where you stand.  Hopefully you have an offer on the table, that will give you leverage, and then your client can sign the 4500-T.  Chase has been much easier to work with recently, the negotiators that I've worked with have been very helpful and polite.  

 

Good luck.