Chase Bank Short Sales-What you need to know

LOTUS REALTYGROUP


We have received several inquiries in regards to working with Chase bank in a short sale transaction. I can tell you that Chase has become one of the toughest lenders to negotiate with. They have also become overbearing in getting what they want, not to mention unrealistic. They are notorious for harassing the homeowner. Chase representatives will call your clients at work and at home until they get the home owner to answer the phone and they utilize manipulative techniques in order to sway the homeowner to come current on their mortgage. This is very humiliating for your client especially while they are going through one of the most financially stressful periods of their life.



Once the sellers signed authorization gets faxed over to Chase (giving you permission to negotiate on their behalf), you may get LUCKY and have a representative call and ask you before you have a complete short sale package submitted, what the value of the offer is? They will inform you that if it is not in line with what they want to net, then don’t bother sending the package over. They are very aggressive in this approach. I never tell them what my offer is as I have the right to have my short sale reviewed and I let the representative know this upfront and I tell them to expect my full package shortly.



Here are some helpful tips when negotiating with Chase: (These tips should be considered when dealing with any lender):



1. Set the expectation with your client. Explain that they will receive many calls from Chase, however, advise them not to answer the phone and forward all correspondence from the lender to you.



2. If a representative calls you and demands to know what the amount of the offer is, inform them that you have an offer in line with the current value, a complete short sale package with a listing history to support your offer and you will be exercising your right to submit a short sale package for review. Do not tell them what your offer is. The goal is to get it to a negotiator.



3. If the homeowner is 12 months plus delinquent and has a sale date within 3 weeks, Chase may not extend the sale date. Remember to prequalify your clients thoroughly. I would not take on a short sale listing with a sale date 2-3 weeks away. 2 to 3 months out are best.



4. Create a listing history for the lender. They will always want to net an amount that does not make sense in the current market place but if you can show the bank where you started and what is realistic (by actively marketing the property with periodic price reductions) you can build a case for yourself when they argue about their NET amount. Always include a comparative market analysis, with 3 active, 3 pending and 3 sold listings. In some instances I will order an appraisal to submit with my package if I feel I need to.



The goal is to be effective and efficient in putting the deal together. First knowing the right deal to take and then having enough time to get it done.



Keep in mind that if you take on a short sale listing with a sale date in three weeks you are not able to create the listing history. ADD a 12 month homeowner delinquency, and a low offer with no data to back it up and you will not be successful with CHASE. If there is not a true hardship this adds to your problems. Again, pre qualify your clients.



Lenders are not going to be compassionate to your client’s situation. Their job is to get the highest offer possible to minimize their loss and they are trained to be tough negotiators so you have to be just as tough and know what their objections are going to be so you know how to handle them and are prepared to fight on your client’s behalf. If you are not armed with the right deal and the right information, you are setting yourself and your client up for a huge disappointment. Knowing that you have the right deal in place will give you the confidence you need to fight harder. It brings a sort of passion to the cause. When you BELIEVE in something, then you will put all you have into it. Never give up until you have the outcome you desire to make it a win for all parties involved. Never Surrender!!


Quote: Battles are won by slaughter and maneuver. The greater the general, the more he contributes in maneuver, the less he demands in slaughter.

( Winston Churchill )


Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions.

LOTUS REALTY GROUP

PROFESSIONAL SHORT SALE NEGOTIATORS


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