Chase Bank is giving seller 30K to short sell! Has anyone heard of this?

I got a call from my client- she was sent a letter from Chase telling her that she can short sell, get 30,000 incentive, no deficiency plus 6% commissions to agents. She was told to find a realtor and list her property which we did. She had tried to do a loan mod with Chase for over 1 year with no results.

We do not have to submit any updated financials at all. Only resubmit the hardship letter and listing agreement plus 3 comps. Then follow up with the Purchase Contract. Also this is an investment property.

Has anyone heard of this yet?????

Chase must want to get rid of this loan fast??? They are in a big hurry for us to get info to them. They call me too, how often does a bank call us?

Has anyone heard of this?

 

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Thanks for the 411. I've been a Preforeclosure/Bankruptcy/Fraud Specialist for 15 years and have NEVER heard of such a program. Chase is one of the WORSE lenders out there so be very careful. I would definitely make sure that your client provides you a copy of the letter. Tell her that you need it for your records. If you find out anything more about this program, of course, please let us all know so that we can see if any of our respective clients would qualify. I simply do NOT trust Chase. I've fought and won too many legal battles with them throughout my entire career so I know how unfair and unethical they can be first hand to be quite frank. I wish you the best and we'll wait to hear back from you. By the way what price range is your listing? Perhaps it's that high due to the value/pricing strategy?

Thanks Dana for the heads up. Actually Chase sent the letter before it was listed. The client tried for a loan mod for 1/12 years.

Finnally Chase sent the letter before the loan mod was either tunred down or accepted. The property is now listed at 365K. Loan on it is for 550K. I did read the letter and no hidden messages for now at least. Straight forward. I will get a copy of the letter and attach to this post when I can.

I will keep you all posted.

 

Hey Kathy! Thanks for the quick reply. I figured it was a highend home. The fact that they are willing to take an upfront loss of atleast $200K on the property tells me a whole lot. However, that's a whole different discussion :-) You don't have to post the letter because, of course, we trust that it exists since you've read it for yourself. I just wanted you to be sure and get a copy for your own personal files to protect yourself and your client in case Chase backs out of the deal. I wouldn't want any disgruntled buyers/buyers agents trying to file legal or unethical cases against you or your client. I believe in advising my colleagues to protect themselves in all areas with supportive documentation and evidence in the event you need to do so. I just had to do the same a few months ago when I was called as an "expert" witness on behalf of one of my clients in an Estate shortsale where she was the Executor. To say the least, respectfully, my testimony and supportive documentation and evidence saved her from the allegations made and any future litigation, as well as protected myself. That is the 2nd time where I had to appear in court in my 15 year career on behalf of one of my seller's to save their neck and mine, too :-) It's such a litigous society and folks will try to sue you or even file false complaints against you with your local Real Estate Commission regardless of whether it's legitimate or not. It pays to cover yourself. I wish you the best!!!
Yes, I closed one last month in Santa Clara, CA, where the homeowner received the $30,000. It was also approved and closed in about 40 days from submital of offer. It was a cash buyer. No financials from the seller either. Very smooth transaction.

Awesome! It appears thus far that California is definitely one of the geographic areas that are benefiting from this program. In this worse market of the century it was probably more than your seller would've received, if anything at all, if they tried to sell it without a shortsale.Thanks for sharing Guy!

 

I have a client with the same offer -- only it's $20K (not 30).  An attorney contact has informed me of hearsay that these offers are being selectively presented to clients with "really bad loans".  When I first told my client about the offer, he thought it was some kind of a gimmick.  He needed to hear it directly from the file processor before he would believe it.
I'm in Texas and on 3/21 I received a call from Chase asking me if I was willing to list a short sale for them. I agreed and a eight days later the homeowner selected one of the 5 offers on the table. Although the homeowners felt that they didn't have to provide me with a hardship letter or financial, I insisted I have them... as I needed to assemble a"formal" short sale package.Fast forward 6 weeks, not only are we scheduled to close on 5/4, but they also qualified for a $10K "move out" incentive.  

WOW Donna, I agree with that. My client also has a terrrible adjustable loan. Not sure why they do not loan mod them??

Thanks for you input Diego. I heard from someone in my office that Chase did call a reatlor about  a sort sale listing. Interesting that they are giving realtor leads. SWEET

I am working on one of these myself, $10,000 in this case, no deficiency and 6% commission. The seller has filed for bankruptcy on this and several other properties and has been released. Do you know if your seller has filed for bankruptcy? I talked with an attorney on that and according to him there is no deficiency (I figured that) but he will get a 1099 so he has to be able to offset the income with losses or else it does not make sense.

 

Hi Susan,

No my client has not filed for BK so that is not a variable in this case, but his defiecency is high, that is whay maybe he is getting more money? Since they already had his 1120 and 1040 info- they knew his tax bracket?? It wold be good to know all the parameters.

So far here is what we all have in common

Bad loan- adjustable is high

Chase owns the loan

Refi on my case

Investment property my case

They give 10K-30K to sellers

No deficiences

6% commission to agents

fast close

no supporting info

Seller was in middle on loan mod

How about age of clients?? Mine is over 65

 

I guess in order to have the seller cooperate with the bank in assisting in the sale is why they offer it and to offset the 1099.

I don't know his age, I have never met him. Maybe they figure it will cost as much if not more to foreclose?

 

 

Yes, I have been hearing this from agents in the Bay Area. No one know the "why and the who" will get these letters. It is so ironic. All along we have been telling the sellers "there could be no benefit to them...must be an arms length transaction" Now Chase does this.

 Keep this discussion alive we need to know more! 

it is the "list assist" program.  nobody seems to know the formula on who qualifies and why.  seems about 1 and 4 in distress are getting this letter.  I am guessing they are all the junk loans absorbed by WAMU.  Not every chase borrower is getting them though.  Anyone have insight on who and why certain borrowers get the option and some dont???

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