Hi all,
I completed a short sale two years ago on a Chase first and now Chase is pursuing the seller for the deficiency (through Allied Intl Credit). Chase says they have not sold the loan to Allied. I'm trying to get the deficiency waived (about $44K).
The seller actually had to bring $6,200 to closing to settle a second with HSBC. She received nothing at closing and could have done a bankruptcy for less money but chose to do the right thing. She doesn't have the money to pay and I'm getting the usual run around at Chase trying to get an answer.
When I am really stuck on a BofA issue I either use the Twitter team or the office of the preisdent. Does anyone have similar kinds of contacts at Chase that will help to get an answer.
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Michelle;
It appears they are trying to penalize you.
Why in the world would you be doing your own short sale?
I may be able to give you some suggestions however doing this privately would be better for you.
I'm doing my own short sale because I felt it was the right thing to do in order to keep the deficiency as low as possible. michellecalandro at yahoo.com
Kevin;
Waiver of deficiency balance terminolgy is long gone and does not apply to a third party collection agent.
Debt Validation is the key phrase:
Here are some links that will provide a mini-clinic on the what, how and why?
http://www.debt-n-credit-letters.com/Debt-Dispute/debt-dispute-lett...
http://www.debt-n-credit-letters.com/Debt-Dispute/previously-settle...
http://consumerist.com/2007/07/sample-letter-for-disputing-a-debt-c...
http://www.debtletter.com/Initial-validate-debt-dispute-letter.html
http://www.debtvalidationletter.net/debt-dispute-letter/
Understand your clients premise is that this debt does not exist and is not valid. Your name does not appear anywhere in the letter.
Don't forget to have them customize their letter with incendiary language. I've condensed these templates down to three paragraphs with the third paragraph being TOTAL NUKEM TILL THEY GLOW without using curse words.
Good luck!
Negotiating terms of a deficiency or debt is absolutely beyond the scope of your duties as an agent and considered the practice of law, or at the very least, that of a debt settlement licensee Don't believe me? Call your state comissioner or Attorney Generals office and find out for yourself.
Yes, you CAN do it, but ask yourself if you SHOULD. Is it worth the liability?
Allow me to re-phrase my previous comment.
Helping your client dispute a debt by mail is not practicing law.
Google a free template letter on the internet, send it to your client then have them complete the process. Send it to the collection agent via certified mail.
Your client’s addition of incendiary language works very well.
This will cost $4 (certified mail) and the chance of success is sky high. This account may eventually disappear. If it pop’s back up your client simply disputes it again.
Assisting your client in good faith will minimize the chance of a past client lawsuit.
WHY THIS WORKS: Lenders collection departments and loss mitigation departments are still not communicating with one another. As you mentioned short sale approval language has changed quite a lot in 3 years. If that lender is not prosecuting deficiency balance collections now it is highly likely that they are not going to try to collect on the old ones either. Disputing that debt from a collection agent gets that debt sent back to the original lender where it will eventually languish and may even vaporize itself. This debt collection via third party agent is an occasional occurrence on second mortgages even with very clear waiver of deficiency balance language in the short sale written approvals.
Thank you so much ! Any idea on the key phrase to google for the template letter? Would "short sale deficiency forgiveness" work?
wait...did the Chase approval letter waive deficiency If not, she owes it, and you are now moving into practicing law by trying to negotiate further. You should have had an attorney on this two years ago, turn it over to one now before you get sued.
I understand Kevin;
Dispute the debt in writing with the collection agent.
The account will be sent back to Chase and you can discuss it with them at that time.
I've had clients dispute this debt category two and three times with different agents and they finally just go away.
The approval letter was not clear. First paragraph said "Chase has agreed to accept less than full payoff to release its lien interest for the referenced loan". Page 2 said "The terms of this agreement may constitute a forgiveness of debt for the referenced seller". When this short sale closed two years ago most Chase short sales of first mtgs were forgiving the debt even though we could not get them to change the approval letter to state clearly that the deficiency would be waived. Under the terms of the approval letter it looks to me like they could pursue. I am trying to get them to forgive not based on the legal terms but on ethical terms. Why should they go after someone with very limited assets who did the riht thing? They now routinely forgive deficiencies on first mtgs and on a lot of seconds. So I am looking for someone at Chase to whom we can make our case.
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