Learn how to get your Chase short sale approved in this Chase Short Sale Case Study.
Chase Short Sale Case Study:
Property Location: Snohomish, WA - Snohomish County
1st Lender: Chase (EMC)
Hardship:
I am in arrears on my mortgage, due to three factors:
- The tenants stopped paying rent in October, 2010. They moved out of the home and I was unable to rent the property due to a drop in rental values. No rent has been received since September 2010, and I have been unable to make the house payments.
- As a Realtor my income has dropped 66% since the home was purchased in 2006. In 2005, my total taxable income was $477,509. In 2009 my total taxable income was $163,816.
- As a result of my financial setbacks I am in the process of a divorce, and this property must now be sold for divorce settlement. I am residing in the home and cleaning it up to enhance the salability.
Initially we purchased this home as an investment for our children’s college education. We intended to hold this home until it was paid off. When the tenant stopped making payments in September, 2010, we were not able to make payments due to our loss in income. We have kept the home in good condition and no repairs are necessary.
We would like to sell the home and get our accounts settled.
Sales Price: $255,000
1st Loan Balance: $420,743
1st Loan Arrears: $12,228
1st Acceptable Net Proceeds: $226,573
1st Deficiency Balance: $206,398
1st Settlement: Deficiency waived!
Timeline:
On May 16, 2011, a signed off to purchase the home for $245,000 was received, and the listing agent forwarded the file to Seattle Short Sales, Inc. A case manager was assigned, and the necessary financial documents were assembled. The completed short sale package was submitted by Seattle Short Sales, Inc., to the lender, on May 26.
On June 11 the Seattle Short Sales, Inc., case manager requested updated financial documents for the sellers from the listing agent. The lender completed a BPO (Broker’s Price Opinion) on June 14, and a negotiator was assigned to the file on June 29.
The Seattle Short Sales, Inc., case manager contacted the lender’s negotiator through July and August, but calls were never returned. On August 26, the lender assigned a new negotiator to the file. The Seattle Short Sales, Inc., had the lender expedite the file, since there had already been so many delays.
Five days later, on August 31, the new negotiator indicated that the file was now with the investor for review. On September 7, he indicated that the file had been approved, and on September 19 the lender issued a letter approving the short sale, and waiving the $206,000 deficiency balance.
Result:
The seller, who needed to sell this investment property as part of his divorce settlement, was approved to short sale the home, with a discount of $206,000 from the balance owing on the mortgage, and was relived of ever having to pay back that deficiency balance.
To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=95500
If you are a homeowner, and would like to learn more about short selling your home, please go to: http://seattleshortsales.com/homeowners/
If you are a real estate agent, and would like to learn about our no-fee short sale service, please go to: http://seattleshortsales.com/agents/
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