The problem with Chase - a painful CT short sale success
Posted by Minna Reid on Friday, June 22nd, 2012 at 8:03am.While short sale processing timelines at Chase have improved a little over the last several months, Chase seems to have some restricting rules in place that severely inhibit communications. Chase is one of the only lenders that does not have a software platform in place for short sale processing, refuses to use email to communicate and Chase negotiators are also prohi
bited from leaving any detail on voicemail messages. Add to this the fact that the negotiators rarely answer the phone and can take days to return a phone call - and you have a real communication problem! Even the most minor exchange of information can easily take days or weeks making the Chase short sale team one of the most inefficient loss mitigation teams in America.
When my sellers decided to leave CT for the bright sunny Florida coastline, they realized they were over $100,000 upside down on their home. Lacking the extra $100,000, they listed the home as a short sale. It took just over two weeks to secure a strong buyer for the home and a complete short sale package headed to Chase. Not even two weeks later, a valuation was complete and we were ready for an answer...and then the problems began with our unresponsive negotiator Linda.
An entire month passed as we played phone tag with Linda and sent numerous faxes in order to attempt to negotiate a demand for cash from my sellers mortgage insurance company. Finally an agreement was reached and the short sale was ready to approve.
The next problem began when the approval letter arrived with no deficiency waiver from Fannie Mae. Another month of frustrating efforts to communicate with Linda and her supervisor followed as we attempted to negotiate a deficiency waiver. With our approval letter near expiration we finally got an answer on the deficiency waiver. For $5,000 Chase would issue a deficiency waiver.
Lacking the cash, my seller was open minded to a note...but faced with an expiring approval letter, an impatient buyer and completely worn out from dealing with Chase -she chose instead to just close without the deficiency waiver.
Owed: $300,000
Approved and closed: $199,000, with buyer contributing $5,600 to Mortgage Insurance Company and seller saying no to $5K in exchange for a deficiency waiver.
Total Time Frame: 15 weeks ( including 8+ weeks of unnecessary phone tag)
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Minna Reid is a CT Licensed Real Estate Broker Associate with CG Real Estate, specializing in short sales, serving the Central CT including, but not limited to; Avon, Berlin, Bristol, Cheshire, Cromwell, Farmington, Glastonbury, Hamden, Meriden, Middlefield, Middletown, Newington, New Britain, North Branford, North Haven, Plainville, Portland, Prospect, Rocky Hill, Southington, Wallingford, West Hartford, Wethersfield and Wolcott.
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Share2 Responses to "The problem with Chase - a painful CT short sale success"
[...]there was no easy fix and we were forced to start the entire approval process from day one. Chase’s refusal to communicate by any other means than BY PHONE ONLY really makes it tough to get anything done quickly. Why in todays state of technology any lender[...]
Posted on Monday, December 10th, 2012 at 2:19pm.
[...]The home was an immediate hit and was under deposit within 2 weeks. A short sale package headed to Chase – the kings of incompetence. Fortunately - less than two weeks later my homeowners received notice their loan had been[...]
Posted on Thursday, June 28th, 2012 at 2:01pm.