Replies to This Discussion

Permalink Reply by William C. Black on April 24, 2012 at 10:50am

What State are you in? Does she have threat of judgments that is garnishing her wages? Is there a 2nd ? 

Permalink Reply by Glenda Brass on April 24, 2012 at 10:55am

I'm in California and no there is not a second. She doesn't have threat of judgments garnishing her wages because she no longer has any wages to garnish!

Permalink Reply by Satar Naghshineh on April 24, 2012 at 11:07am

I had a client in which their Chase Outreach letter expired. I just put the 20k that they were offering her a few months back on the HUD and it got approved. In California.

Permalink Reply by Glenda Brass on April 24, 2012 at 11:24am

Had your seller filed BK? And about the 20k, they had to offer. Can the seller request that incentive?

Permalink Reply by Satar Naghshineh on April 24, 2012 at 11:32am

Didn't file BK. They offered the seller 20k, but the letter expired and Chase told me that the seller no longer qualifies. A few months later when the seller was ready to do the short sale, I just shoved the 20k on the HUD and called it "Chase outreach program". It got approved.

I now have another seller with Chase and same investor (Duetch Bank). They said there is no incentive for this seller. I'm just going to do the same thing again and see what happens.

Permalink Reply by Glenda Brass on April 24, 2012 at 12:59pm

Good strategy. I'll add some  incentive to my HUD when i'm asked for it. All they can do is deny it, right! Thanks again...

Permalink Reply by SE Davis on April 24, 2012 at 12:14pm

I've closed short sales right after BK7 discharge and during a BK 13 Plan.

The BK13 plan had to recieve a copy package processed by their BK attorney and get a sign off from the Trustee and the judge before closing. Its just an extra step in the process.

The seller probably will not get any incentive as the trustee and the judge would most likely have to distribute those funds to the listed BK creditors.

I had to suspend sale dates three times and the lender attempted to change the locks on this occupied property "prior to foreclosure". I suggested to my client to throw the locksmith off his front porch. He did. This is what we deal with here in Georgia the fastest forelcosure state in the nation.

In the future though I personally choose to not process the BK 13's. Its not worth the aggravation and there is always a remote chance that the seller will convert to a BK7 just to stay in their home for free another 9 months.

A real estate agent would be best advised to not touch a transaction like this with a ten foot pole.

Permalink Reply by Glenda Brass on April 24, 2012 at 1:01pm

Thanks for the feedback SE, I appreciate it. Now I'll pose that scenario to my seller as a potential. She can do the BK, but may not get any incentive should it be offered. California may be slightly different, not certain exactly. This will be my first where a BK is involved. Her attorney says it will be okay, but my main concern is that she is fully aware of what this does to any incentive they offer. chase has been known to offer pretty hefty incentives so she may change her mind and do the  BK later...I hope. That's one last 'step' that we dont need to have to take. Thanks again. I appreciate it.