Forum

Chase and Judicial Foreclosure in Anti-Deficiency States

Posted by Tina Porter on November 29, 2010 at 7:17pm in Short Sale Discussions

I am in CA and my client has a 1st and a 2nd purchase money loan with Chase. We are in escrow, but now sure about the 2nd which gives Chase the right to come after the deficiency. Negotiator states that it is better if she takes this because if she doesn't, Chase will foreclose judicially and not do trustee sales  in all states because they have a team of attorneys that will sue in all states for deficiencies. If they foreclose, client will be sued for the whole amount. I know that we are a non-recourse state and they will go nowhere with the foreclosure.  Chase negotiator said that if seller did not agree to the verbiage on the 2nd approval, she does not have to sign it. Once the shortsale has closed. CA law will take over. My client does not want to foreclose. Can Chase come after her for the 2nd loan deficiency if she does not sign it? I appreciate your expert advice tremendously!!!  Thank you

 

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Email me when people reply –
Follow

Replies

  • Tina Porter December 21, 2010 at 10:11am

    Hello Bryant, 

    I thank you very much for replying to my question.  I just received it today. Since then, buyer walked and I submitted a new offer to Chase with the same scenario.  1st and 2nd are purchase money. Wouldn't it be a waste of time for Chase to even try to foreclose judicially?  A NOD has never been filed. Again, thank you so much and I am going to keep this windo opened so that I don't miss your reply!

  • Bryant Tutas December 2, 2010 at 1:08am
    Tina. That's quite normal in my State of Florida. The borrower needs to seek legal advice. Normally what Chase will do is contact them after closing to make arrangements for the balance still owed. At this time the borrower can negotiate a cash settlement or a prom note with no interest. If the borrower just ignores the request it will more than likely be sold off to a collection company for pennies. They will then try and collect.

    Personally I'd rather deal with an unsecured note than have a foreclosure on my record.
This reply was deleted.
********************************** like buttons ************************