Hi all,
Homeowner went through Chapter 7 -- everything was discharged. Homeowner got a letter from Chase saying they were eligible for $20K by doing a short sale.
Homeowner also has a HELOC with Citibank -- that debt would have been discharged as part of Chapter 7, right?
So they wouldn't have to be approached about the short sale?
Anyone have any clues on this?
Let me know.
Thanks.
P.S. We are working with a RE attorney -- I guess my question is I am not sure what forms package I should be putting together for the HELOC. Thanks.
**********************************
like buttons
Replies
The Chase Outreach is for a small pool of loans that from what i have been told were loans that they would be challneged finding the actual Note for from the Washington Mutual days of chaotic closings and improper loans (fraud). These have nothing to do with BK and the investor that owns them bought at a discount already and the "incentive" is much more affordable to them then trying to foreclose as in some states they require the actual note in advance of foreclosure proceedings. One thing that is important is Chase is a servicer of many other investors paper- so when one person has good luck with a "streamline" type of short sale its just because that specifc investor has limited barriers and wants to make it fast and easy to get what proceeds they can. Throw in a Fannie Mae HAFA and they now have to jump through a huge criteria and depending on training and level of competecny for the negotiator makes a difference on timelines and success.
This information is "crucial" I have a relative that really might fit this scenario with Chase. She has filed a BK ch.13 because they (Chase) were going to foreclose after "not" giving a Permanent Loan Mod that was suppose to be for 3-months but went on for 9-months and she continued making her trial payments. Now her attorney has filed an adversarial proceeding against Chase for exactly what you sited "no" proof of who owns the note that came from WAMU. You would think with this being the case Chase would settle it before going before a judge and give her a new permanent loan which is all she really wants. Thanks for the valuable info. I suppose a homeowner could call and ask about the Chase Outreach Program?
Hi Coleen, Do you have a contact or more information on this Outreach Program with Chase? You didn't say but I'm assuming your client was "not" in Foreclosure jeopardy with Chase? Wondering if this could work for my relative that's in a Ch.13- But only because Chase was attempting to Foreclose.
Appreciate any feedback..
If you are working with an attorney, the attorney should be able to answer your question.
Very helpful information...thanks.
Way to go Superstars!
Thanks to all for a great question and your very informative answers!
Hi Coleen,
My seller had told me about a letter which he dug out of the trash, wiped the mustard off, and I called to confirm they would honor it as it had expired....They said they would.
I closed a Chase (with the Outreach Program) where my client received $20,000 for the program and $3,000 for moving. He was in bankruptcy at the time so we were contingent on court approval as well. Once his bankruptcy attorney realized he was receiving monies, he double his fee for "legal entanglement". In the end, they were more concerned over receiving a 1099 so the decision was made to forego the bankruptcy. After 14 days for notifying the creditors of the dismiassal and 5 days for a judges signature, we were able to close.
In general, do a complete package with Chase with Outreach Program ($20,000) on the Hud1...try to see if there is the $3,000 credit as well.
Have the attorney check the title work to see if there is a second lien. It may not have been included in the bankruptcy.
The Heloc needs pretty much the same package along with the approval letter from the first. Typically Chase will offer Citibank $3,000 to release the lien (assuming there is one) but keep in mind on Heloc's, most are recourse loans depending on your State law. I am seeing promissary notes and deficiency judgments with these.
Can you give me more information about the Chase Outreach Program? How does it work? Is it for Sellers wanting to discharge a BK Ch. 13 and pursue a Short Sale? And they do qualify for the 3000 in Relo funds?
I was introduced to the Chase Outreach Program by my seller who was told by his mortgage company to seek out an agent to sell the home. He had received a letter from Chase encouraging a short sale by offering $20,000 with this program. The date had expired on the letter but I was able to get Chase to extend it in our case. Chase instructed me to add the $3,000 (HAFA) to the hud1 as well. The CMA was approx $240,000. Line 1304 showed Chase Outreach Incentive To *Client's name* $20,000 and line 1305 showed HAFA Incentive To *Client's name* $3,000
That was in the Spring but I just was asked last month to work with a potential client who was offered $30,000 through this program on a property that comps about $475,000. So it appears the program still exists but you may have to ask or better yet, I would have the seller ask Chase.
One issue for the BK attorney will be trying to justify why your client should be able to keep these funds as the court will need to approve the hud1. Also, in our case, the BK attorney doubled his fee once he found out the client was going to receive money. He claimed it was for all the "legal entanglement".
In our case, the client decided to withdraw his bankruptcy as it appeared it would be the quickest option when it appeared the buyer would walk as the bankruptcy was dragging out. I would definitely seek the attorneys advice before suggesting that though.
Hi Ben, Thanks for the response...Let me be sure I am correctly following the sequence of events in your statement. 1. Your seller was in an active Ch 7? 2. Chase sent a letter offering them $30,000 cash to do a short sale during this time? 3.The BK Attorney had to get permission or OK from the courts for the Seller to accept this Outreach Program from Chase and funds? 4. AT what point did you get an offer from a buyer for the property? I'm not sure when you started marketing for a buyer? If this all occured "after" a Ch. 7 was discharged I'm not following why the courts would still need to be involved?
I have a relative that's is in a similar situation as THIS one and would like to give her the information. She is currently in a Ch. 13 has a mortg. with Chase. The ONLY reason she filed the ch. 13 is because Chase was trying to Foreclose AFTER they turned her down for a permanent Loan Mod that was supposed to be a Trial plan of 3-months but lasted 9 months with her making "all" the payments. Refused to work with her and set out to Foreclose....
-
1
-
2
of 2 Next