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Short sale with chase and a 2nd lien holder

Seattle, WA |

If I am sort selling and my purchase price was 350 and someone offered about 220 on a short sale (which is pretty damn close to market now) will chase typically accept this offer? (FYI I skipped two payments and am now operating behind by 2 months and am skipping paying my 2nd all together - can't afford it.

Attorney Answers 2

Posted

My experience with short sales where Chase has been the lender is that they will accept the offer provided the following steps are taken: Look at their website. They have documentation you will need to download and fill out. You will need to provide them with your last two years tax returns and your last two months bank statements, a hardship letter explaining why you need the short sale and cannot afford to continue paying your mortgage the listing agreement, the contract and, if you are having someone else help you with your negotiations, a letter of authorization. Expect to wait about 90 days. After that time a negotiator should be assigned to your file, although it is not a bad idea to call every week or two to find out the status of your file. Once a negotiator is assigned, they will order a "BPO" a Broker Property Opinion. A local broker will be hired to view your property and determine your current market value. It is a good idea to have your sales agent meet the broker and provide them with the current comparable (comps) and the comps that were used to determine the listing price. The Broker does not have to take that information, but it doesn't hurt to have it available. Within 2 to 3 weeks you should hear from your negotiator. They will ask you to update your bank statements (since they are now out-of-date) (consider that when you handle your finances over this period of time). I have found that if it is clear that you cannot afford the home and the offer is within the value they could sell the house for if they foreclosed on you, then they will generally accept the offer. On the other hand, if it appears that you could afford the house, or the offer is unreasonably low, you can expect your offer to be rejected.

This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance

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Posted

The short sale acceptance will be evaluated on the amount left on the loan more than the fair market value or purchase price. Expect to be delayed and rejected a few times before acceptance.

I hope this information and generic advice is helpful.

Good Luck

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