Chase shows account closed and zero balance after client completed BK but won't release lien

I have spoken to multiple departments at Chase over the last couple of weeks who have all said this HELOC was closed with a zero balance in 2014 (Our escrow officer even has an email from a Sr specialist at Chase confirming the account closed/zero balance).  I was told the balance at the time was approx. $25K but it was cleared in BK and the account was closed with a zero balance.  The balance on the 1st mortgage is just low enough for us to proceed with a standard sale, but the Chase HELOC is still on title.   We are trying to process the lien release but were transferred to the "bankruptcy recovery" team today who are saying the lien will only be released for a payment of $35K and it has to be paid by April 29th and cannot be paid through proceeds of the sale.  They are also saying they had mailed an offer to the seller last fall offering to release the lien for $18K but that offer is no longer available.   My client is battling stage 4 cancer, she is just wants this to be finished, she absolutely doesn't have $35K.

Does anyone have a senior contact at Chase that could help with this file?

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Replies to This Discussion

Merilee  bankruptcy filing does not remove a previously recorded lien. The lien holder, CHASE , does have the right to hold your sale hostage unless they receive some payment. I have dealt with this issue with CHASE recovery department many times and very successful. they are giving you misinformattion by stating that it cannot come from the sale proceeds. I am also in Calif  and licensed

call me

Tony Morales

TM Short Sales Consulting

909-239-2322

Thanks for the reply Tony.  Which department did you work with to resolve the situation?   There is very little equity in the home but we could give a little to Chase to get it done.  The 1st is going to foreclose on May 4th, so we are working against the clock.  The woman I spoke to in the BK recovery dept wasn't very helpful (actually she was quite rude).  Do you recommend a supervisor in that department or is there another option? 

Merilee,

File a complaint on the CFPB website.  www.consumerfinance.gov It is easy, quick and Chase will call you fairly quickly with a resolution.

That is not actually what happens  once you file a complaint with CFPB it will only delay your process  as it is routed to the executive office who then has to reach out to a manger in the recovery department. Yes they will call you but it is just a formality. In about ten days they will respond to the CFPB and simply defend their position.  Unfortunately, and due to your sellers hardship, The CFPB cannot force a lender to release the lien

Agree they cannot force Chase to release lien, (never said they would) but they can put pressure on them.  I had a similar once recently, made a CFPB complaint and got a call from Chase within 48 hours of the complaint being filed.  Just speaking from experience.

Exactly  CFPB only requires them to make the call

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