Learn how to get your GMAC/Chase short sale approved in this GMAC/Chase Short Sale Case Study.
GMAC/Chase Short Sale Case Study:
Property Location: Duvall, WA - King County
1st Lender: GMAC
2nd Lender: Chase
Hardship:
“My husband and I legally separated in July, 2010. He continues to live in the house while I took a new job in the state of Kansas and now reside there as well. Since the time of our separation, we have continued to pay our mortgage each month without fail, and to date have not been late with any payments.
“I was recently informed by my employer that, effective next month, my salary will be reduced by approximately 30%. As a result, I will no longer be able to contribute 50% of our overall mortgage payments as I have been since July 2010.
“We had every intention of trying to keep the house, but don’t see how that is possible with the reduction of my income plus the added expense of me living in another state and having to rent an apartment in addition to having the mortgages.
“While we would like to sell our home and settle up our accounts, the current real estate conditions do not allow us to market or sell our home for anything close to what we currently owe. We take our responsibilities very seriously, and are asking for your assistance with this matter.”
Sales Price: $265,000
1st Loan Balance: $309,000
1st Loan Arrears: $0
1st Deficiency Balance: $66,075
1st Settlement: Deficiency waived!
2nd Loan Balance: $88,582
2nd Loan Arrears: $0
2nd Deficiency Balance: $83,289
2nd Settlement: Deficiency waived!
Timeline:
On February 26, 2011, the homeowners initiated the short sale process and listed the home. The Listing Agent passed the file to the Seattle Short Sales, Inc., case manager.
On June 23, a signed offer to purchase the home was received. The following day, the Seattle Short Sales, Inc., case manager requested updated financial documents from the seller. On June 27, a BPO (Broker’s Price Opinion) was requested. The homeowners provided the financial documents on July 1, and on July 5 the Seattle Short Sales, Inc., case manager submitted the completed short sale package to the lender.
On June 23, the Seattle Short Sales, Inc., completed various tasks requested by the lender. Through July, the case manager continued to check in with the lender regarding progress. On August 17, further financial documents requested by the lender were provided. The lender countered the offer, requesting that the purchase price be raised. On August 24, the buyers agreed to a price of $265,000, and that addendum was submitted to the lender.
Through the rest of August, the Seattle Short Sales, Inc., case manager attempted to contact the lender’s negotiator. On August 30, Chase as first lender issued an approval for the short sale.
On August 31, Chase as second lender assigned a negotiator to the file. Their negotiator ordered an interior BPO. Through the month, the case manager continued to follow up with the Chase negotiator. On September 21, the negotiator indicated that they still were waiting on the interior BPO.
On September 29, Chase as second lender assigned a new negotiator to the file. Through October, the case manager continued to follow up with the Chase negotiator. On October 21, Chase as second lender issued their approval for the short sale. The Seattle Short Sales, Inc., case manager obtained an extension of the approval issued by GMAC, the first lender, so the sale could close.
Result:
The homeowners were able to short sale their home before defaulting on either of the mortgages. They avoided foreclosure, and also avoided the serious damage to their credit score that default on mortgage payments would have caused. They paid both mortgages with a total of $149,000 discounted from the balances owing, and they were waived of ever having to pay back those deficiency balances.
To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=92394
To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=94744
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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