Case Studies

Learn how to get your Chase short sale approved in this Chase Short Sale Case Study.

Chase Short Sale Case Study:

Property Location: Sultan, WA - Snohomish County

1st Lender: Chase

2nd Lender: Chase

Hardship:
“Within the last 18 months I have relocated 254 miles away from my house for a job. As a result of this move, I now have to pay $2200 a month in rent, living expenses, as well as high gas prices, and have become unable to make payments, as agreed, on this mortgage. I am the only source of income for my husband and child.

“The economy is still making things difficult. I have tried, in good faith, to sell this house, but it remains on the market with no offers, as we owe more than we can sell it for. Foreclosures are all over the place, but I would like to avoid foreclosure if possible.

“Please work with this buyer so we can avoid this pending foreclosure.”

Sales Price: $109,000

1st Loan Balance: $220,000

1st Deficiency Balance: $124,000

1st Settlement: Deficiency waived!

2nd Loan Balance: $55,000

2nd Settlement: Payout

Timeline:
On June 21, 2011, the Seattle Short Sales, Inc., case manager received the file from the listing agent. She assembled all of the necessary documents, and submitted the file, classified as “File complete, waiting for buyer” on June 27. While waiting for a purchase offer, the homeowners were able to pay out their second mortgage in full, so only needed to obtain permission from the first lender to short sale the home.

On December 26, a signed offer to purchase the home for $106,000 was finally received. On December 28, the Seattle Short Sales, Inc., case manager faxed necessary documents to the listing agent. On January 3, 2012, the lender requested a 4506T form, and the Seattle Short Sales, Inc., case manager passed this request on to the listing agent. On January 5, the case manager received a copy of the purchase agreement and an updated title document.

On January 12 the file was submitted, classified “File complete with buyer.” On January 17, the Seattle Short Sales, Inc., case manager faxed the HUD and purchase agreement to the lender.

On February 1, Chase assigned a negotiator to the case. On February 6, Chase countered the offer, requesting that the purchase price be raised to $109,000. On February 9, the buyers agreed to the price increase. On February 13, the Seattle Short Sales, Inc., faxed all revised documents to the lender.

On February 20, Chase issued a letter approving the short sale.

Result:
The homeowners, struggling to pay a mortgage that was twice the current value of their home, were able to short sale their home. They paid their lender $96,000 - well under half of the $220,000 that they owed their lender - and they were waived of ever having to repay the $124,000 deficiency balance.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=102512

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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Learn how to get your Chase short sale approved in this Chase Short Sale Case Study.

Chase Short Sale Case Study:

Property Location: Seattle, WA - King County

1st Lender: Chase

Hardship:
“This home was originally purchased in 2004 as a lease option-to-buy for a tenant. At that time, I put over $15,000 down towards the purchase, confident the property would be a good investment. Beginning in 2009, our financial situation drastically changed, first due to personal employment and then later (in 2010) due to trouble stemming from the tenant.

“Our personal financial situation changed dramatically in 2009 with the birth of our first baby. Since my wife was unable to work full-time, our household income was reduced by nearly $3000/month. In 2010 she took on part-time employment to help supplement our income; however, this has come to an end with the birth of our second child in July 2011, and she will be staying home for the next few years to raise our children.

“Throughout 2010 the tenant’s monthly rent payments for this property became inconsistent and eventually stopped in Janauary 2011, yet he remained on the property until February 2011. In an effort to uphold our financial responsibiity to the lender, full mortgage payments were made for both January and February 2011 even though no rent was collected for either month. After his departure, we considered trying to rent the home, but based on the current market, it was determined this would result in a net loss close to $600/month which we could not afford.

“In an effort to follow through with our financial obligations to Chase, in February 2011, we chose to refinance our other investment property to lower the mortgage payment, even though the home was assessed to be worth less that what we owed on it. (It qualified for a HARP re-fi, 105% LTV). After the re-fi, the property still results in a $350/month net loss, which is more manageable than the prior $700/month net loss we had been sustaining for nearly 4 years.

“Based on the conditions above, in February 2011 we came to the conclusion that selling this home was our only option. Prior to listing the home for sale in March 2011, numerous repairs were in order, due to tenant negligence, which cost us over $2000 and over 80 hours of personal time cleaning and repairing damage done to the property. After having it listed for over 4 months, we have received no offers and have continued to drop the price multiple times from the original listing price of $205,000 to the current listed price of $158,000, which is far less than the original purchase price of $260,000.

“We currently do not have the financial resources to cover the cost of the propety sale, and are at this time asking for your help to approve a short sale of our home. We can find no other answer to our circumstances that will allow us to avoid foreclosure. A foreclosure on our record will greatly affect our family for years to come and we are devastated by the thought.

“We are a modest family, extremely conservative, and conscientious in our spending. We request that you please help us in avoiding this.”

Sales Price: $125,000

1st Loan Balance: $242,166

1st Deficiency Balance: $134,260

1st Settlement: Deficiency waived!

Timeline:
On May 16, 2011, Seattle Short Sales, Inc., received the file from the listing agent. A case manager reviewed the file, and on the following day requested the missing documents which included financial documents, title documents, and a hardship letter. The last of these documents were provided two months later, on July 22. On July 25, the Seattle Short Sales, Inc., case manager sent the completed file back to the listing agent, classified “File Complete Waiting for Buyer.”

On September 11 a signed offer to purchase the home for $125,000 was received. On September 16, the Seattle Short Sales, Inc., case manager submitted the completed short sale package to Chase. On September 27, Chase ordered a BPO (Broker’s Price Opinion). On October 11, the Seattle Short Sales, Inc., case manager faxed updated financial documents to Chase. Through October, the case manager continued to contact Chase about the offer.

On October 26, Chase countered, accepting the $125,000 purchase price but requesting a $3,000 contribution from the seller. On October 28, Seattle Short Sales, Inc., countered with a $1,500 contribution from the seller.

On Novermber 4, the listing agent contacted Seattle Short Sales, Inc., to say that Chase had called to inform them that the file had been closed because they had not received the requested information. The Seattle Short Sales, Inc., case manager immediately contacted Chase to say that the counter offer response had been sent the previous week and that Chase had never called or left any messages. A Chase customer service rep responded, agreeing that the file had been closed by accident, and said that the file would be reassigned within 48 hours.

On Novermber 8, the Seattle Short Sales, Inc., case manager contacted Chase about the status of the file. They responded that a processor had been assigned to the file, but it would take another 10 days to have a negotiator assigned. On November 15, a new Chase negotiator called and requested some additional financial information. The Seattle Short Sales, Inc., requested the documents from the listing agent; these were returned and sent in to Chase on November 21.

Through the first half of December, the Seattle Short Sales, Inc. case manager continued to contact Chase for updates. On December 20, the Chase negotiator called to say that the investor had approved the offer. The approval letter was issued the following day.

Result:
The homeowners owed $242,166 on their mortgage. They were approved to short sale their home and pay off only $107,906 - less than half of the balance owing on the loan. They were waived of ever having to pay back the $134,260 loan discount, and able to relieve themselves of a financial obligation that they had no hope of ever being able to repay, and focus on their young family.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=97885

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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Learn how to get your Chase short sale approved in this Chase Short Sale Case Study.

Chase Short Sale Case Study:

Property Location: Everett, WA - Snohomish County

1st Lender: Chase

Hardship:
“When we purchased our home in 2007, we were excited to have our very first home, and though it needed a little work we were certain that it was a sound investment in our future. We quickly acquired credit for several projects to add value to the home. Immediately there were plumbing and electrical issues that the previous owner had glossed over and that required attention in order to live in the home comfortably.

“We added a large shed for storage and a privacy fence, both of which we built ourselves. In early 2008, we had a high-quality siding installed, not only to improve the appearance of our home but the energy efficiency as well. These improvements were very costly, but we were confident that we would recoup our costs because of the strong market values in our areas.

“In April 2008, the waiting period for refinance on our loan was up, and we were looking forward to the prospect of a refinance that would allow us to use the equity we had earned, to consolidate the extensive credit card debt that we had incurred over the last two years. Imagine our disappointment and distress when we realized that the value of our home had actually decreased.

“Somewhat frantic, we were relieved that Chase offered options for modifications of loans for homeowners in our situation. We completed our first modification in early 2008, but were disappointed in the results. We then hired a lawyer who specializes in loan modifications in April 2009, and for the last 19 months have been anxiously awaiting help. We recently received the offer for our new loan, and are still unable to meet the new terms.

“During this same time frame we have had several expensive health care issues. We do not have health insurance and in late 2008, my husband required emergency dental care that has resulted in over $13,000 of debt. In late 2009, he was also diagnosed with an untreatable genetic condition which causes extreme chronic back pain. The care and treatment of this condition has caused us to deplete our minimal savings. The monthly bills for his pain medications are in excess of $500. In addition to the added costs, his daily pain makes working difficult, and he has been forced to cut back his hours, decreasing his income.

“Over the past two years we have struggled to keep our heads financially above water. We are now unable to keep up with the mortgage and our medical debts as well as the maintenance of our home. We have struggled for so long, and do not wish to end in foreclosure. Please help us to sell the home and settle our accounts.”

Sales Price: $60,000

1st Loan Balance: $192,684

1st Loan Arrears: $7,465

1st Deficiency Balance: $152,374

1st Settlement: HAFA transaction - Deficiency waived!

Timeline:
The home was listed for sale on March 3, 2011. On May 19, the Listing Agent passed the file to a Seattle Short Sales, Inc., case manager. The case manager assembled all of the necessary financial and legal documents, and on June 7 sent a package to the Listing Agent, indicating “File Complete, Waiting for Buyer,” and also forwarded documents to Chase, the lender.

On July 26, Chase requested additional documents, including the listing agreement, hardship letter, and financial documents, as well as ordered the BPO (broker’s price opinion), which they indicated would be valid for 120 days. The Seattle Short Sales, Inc., case manager checked with the Listing Agent about the listing price. It had not been lowered since the home was listed, more than four months before, so she instructed the Listing Agent to lower the list price in order to try to obtain an offer.

On August 1, the Seattle Short Sales, Inc., obtained the forms for the sellers to apply for HAFA. These were completes, and submitted to the lender on August 9. On August 26, Chase approved the seller’s participation in HAFA. All parties awaited a buyer. On  August 31, the list price was lowered to $75,000.

On October 19, the Chase negotiator suggested lowering the price again, indicating that if the home did not sell by December 22, participation in HAFA would expire, and the file would have to be reassembled as a traditional short sale.

On October 31, a signed offer to purchase the home for $60,000 was received. On November 3,  the offer and HUD was faxed to the lender. On November 10, the Seattle Short Sales, Inc., case manager asked Chase for an update; they responded requesting that the documents be re-sent.

On November 18, the Seattle Short Sales, Inc., case manager followed up with Chase again. Chase confirmed that the offer had been received and was in a queue to be assigned to a negotiator, noted that the BPO had expired and they would have to order a new one, and indicated that the file would have to be reviewed again for HAFA.

On November 28, Chase assigned a negotiator to the case, and the Seattle Short Sales, Inc., case manager left a voicemail making contact with her. On December 2, Chase indicated that the case was with a document processor, and that a negotiator would be assigned shortly, and that the would review the offer within 20 business days. The latest BPO was completed, but Chase would not share the value.

The negotiator was assigned on December 8, and the Seattle Short Sales, Inc., case manager left a voicemail to make contact with him and to request an update. On December 15, the negotiator requested updated financial documents and an updated listing agreement, which the case manager requested from the Listing Agent. These documents were provided by the Seattle Short Sales, Inc., case manager on December 27.

On January 5, the new HAFA documents signed by the seller were received, and forwarded to Chase. On January 12, the Chase negotiator returned documents, indicating that closing must be before March 15, and reducing the escrow and attorney’s fees. The Seattle Short Sales, Inc., case manager revised and resubmitted the documents accordingly. On January 18, the Chase negotiator requested that two other fees be revised on the HUD, which the case manager changed and resubmitted that same day. The Chase negotiator submitted the file to the investor for a final decision.

On January 27, the negotiator indicated that the file would be approved, and on January 30 a final letter approving the short sale, and the seller’s participation in HAFA, was issued.

Result:
The homeowners were able to short sale the home that they could no longer afford to make payments on. They paid off $47,775 to the lender - out of a total balance owing on the loan of $200,149 - which is less than one quarter of the total funds owed. Since the short sale was processed as a HAFA transaction, they were waived of ever having to pay back the $152,374 discount, and were able to get a clean start in life.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=99747

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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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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Learn how to get your Chase short sale approved in this Chase Short Sale Case Study.

Chase Short Sale Case Study:

Property Location: Seattle, WA - King County

1st Lender: Chase

Hardship:
“We could no longer afford payments on our home due to a drastic cut in my salary as well as my wife no longer working.

“We had hoped to qualify for a loan modification because we wanted to continue living in our home, but each time we were denied. Due to the stress of trying to keep our home I became very ill and hospitalized with stress-related illness that I continue to suffer from.

“When we left our home, people broke in and damaged the property. We have filed a report and await the legal process. The overwhelming stress brings us to a place where emotionally we realize we can no longer fight for our home. Please allow us to sell our home and settle this financial burden.”

Sales Price: $185,000

1st Loan Balance: $225,541

1st Loan Arrears: $1,357

1st Deficiency Balance: $89,092

1st Settlement: Deficiency waived!

Timeline:
On August 21, 2011, a signed offer to purchase the home for $171,500 was received. The completed short sale package was submitted to Chase, the lender, on September 20. On September 28, Chase indicated that a negotiator would be assigned by the following week.

On October 6, Chase confirmed that the negotiator had been assigned. That same day, the negotiator indicated that, although they would be countering the purchase offer at $204,000, if the buyers would come up to a minimum sales price of $184,500 he would submit the file to the investors. The Seattle Short Sales, Inc., case manager contacted the Listing Agent with that information, requesting the buyers to come up with their highest and best offer.

On October 10, the Chase negotiator followed up, looking for a response to the counter-offer. The Seattle Short Sales, Inc., case manager followed up with the Listing Agent, who indicated that he had not received any of her emails, but that he would now the buyers’ agent.

On October 13, the buyers agreed to come up to $185,000. The Seattle Short Sales, Inc., case manager immediately created the HUD and faxed it to the Chase negotiator. The negotiator requested a revised HUD showing the $20,000 seller incentive on it and the MLS listing report, which the Seattle Short Sales, Inc., case manager provided that same day.

The following day, on October 14, Chase issued their approval for the short sale, waiving the deficiency and providing the seller incentive.

Result:
The homeowners were not only able to avoid foreclosure by undertaking a short sale of the home that they could no longer afford - they were also waived of ever having to pay back the $89,000 deficiency on their loan. And, on top, they received a $20,000 incentive payment from their lender!

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=94761

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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Learn how to get your Chase short sale approved in this Chase Short Sale Case Study.

Chase Short Sale Case Study:

Property Location: Bellevue, WA - King County

1st Lender: Bank of America

2nd Lender: Chase

Hardship:
“I have been living in my home since July of 2000, and fully expected to retire here. However, on September 30, 2010, for the first time in 40 years of employment, I was laid off.

“I tried to find work through the end of 2010, but discovered that my skills were not adequate enough to compete in today’s job market. For that reason, the Employment Security Department’s Worker Retraining office suggested that I go back to school and upgrade my skills, at their expense, which I have been doing since January 4, 2011.

"Before I lost my job, I was able to pay my mortgages on time and maintain a very good credit rating. Until a couple of months ago, I was able to continue to pay my mortgage using my severance and savings. Unfortunately, those resources are gone now, and I have no pension. I tried to apply for a loan modification but was told that my loan’s investors do not consider unemployment a hardship.

“I never thought this would happen, but it seems that the only option left is to sell my home. I am hoping that you will help me so that I can settle my accounts without having to go into foreclosure.”

Sales Price: $340,000

1st Loan Balance: $267,916

1st Loan Arrears: $3,223

1st Deficiency Balance: $0

1st Settlement: payoff

2nd Loan Balance: $99,914

2nd Deficiency Balance: $74,330

2nd Settlement: Deficiency waived!

Timeline:
On July 4, 2011, a signed off to purchase the property for $340,000 was received. The listing agent sent the file to Seattle Short Sales, Inc., on July 11. and the package was prepared and sent to the 2nd lender (Chase) on July 20. The seller had sufficiency funds to pay out the first mortgage, so short sale approval was not required from the first lender.

On August 10, Chase assigned a negotiator to the file. On September 6, Chase requested additional financial information about the payoff from the first lender, which the Seattle Short Sales, Inc., case manager provided the same day.

On September 12, Chase as second lender issued their written approval for the short sale, waiving the deficiency balance.

Result:
The homeowner, who had always had an excellent credit record but had unexpectedly found herself unemployed, was able to avoid foreclosure. She paid out her first mortgage, and was able to free herself of the second mortgage obligations by paying just one quarter of the balance owing. She was relieved of ever having to pay back the $74,000 deficiency balance on that loan, and avoided the stain on her credit rating that foreclosure would have caused.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=92906

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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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:

1. 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.
2. 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.
3. 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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Learn how to get your Chase/SLS short sale approved in this Chase/SLS Short Sale Case Study.

Chase/SLS Short Sale Case Study:

Property Location: Edmonds, WA - Snohomish County

1st Lender: Chase

2nd Lender: SLS

Hardship:
I have a first mortgage in the amount of approximately $335,000 on my home. I stopped making my mortgage payments in February 2010 for the following reasons:

• I lost my job. At the time of my termination, the company owed me more than $60,000 in back wages. I have had two hearings on this matter, so far without resolution.
• I have been unable to find paying work sine November 2009.
• My ex-wife has refused to let me see my daughter, and we are in expensive, protracted, de-facto parenting litigation.
• My current wife has been unable to find paying work for over three years.

This has indeed been a perfect storm for me, and I have subsisted on unemployment insurance for most of the past year, supporting a household of five for most of that time. I regret sincerely not being able to make my mortgage payments, and never in my wildest dreams expected to be in a mess like this.

I intended to pay the mortgage last winter. But after I sold all the stock that I had and cashed out my retirement account, I had to choose between feeding my family or paying the mortgage. I expected that I would find work and catch up on the payments. It just didn’t work out.

I have had the house on the market since April of 2010, three times lowering the price. We now have the property listed with a short sale specialist, and we have lowered the price again two times. I am doing my utmost to sell the house in this very challenging market and get my account settled.

1st Loan Balance: $335,000

1st Loan Arrears: $27,000

2nd Loan Balance: $100,000

Sales Price: $320,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $279,631

2nd Loan Approved Net Proceeds: $6,000 plus $4,000 cash payment

Timeline:
On November 9, 2010, Seattle Short Sales, Inc., received the signed listing agreement and broker agreement. Although there was no purchase offer at the time, since the Trustee Sale was scheduled for November 29, the completed short sale package was submitted to Chase, the first lender, the following day.

On November 15, a signed offer to purchase the home for $320,000 was received. Seattle Short Sales, Inc., requested that Chase postpone the Trustee Sale.

On November 19, Chase confirmed that the offer and the request for postponement had been forwarded to Freddie Mac, the investor. On November 22, Chase indicated that the Trustee Sale had been postponed to January 7, 2011, but that the file had not yet been assigned to a negotiator.

On December 1, a negotiator was assigned to the case. She indicated that the sale was ineligible for HAFA as both homeowners were not occupying the property. On December 2, Seattle Short Sales, Inc., submitted the short sale package to the second lender, Flagstar. On December 10, Flagstar made contact indicating that the loan had been transferred to SLS.

On December 16, Chase indicated that their BPO (Broker’s Price Opinion) had come in, and they would counter the offer at $360,000. On December 22, the buyers countered at $350,000.

On January 24, CHase requested that the entire short sale package be re-faxed to them, as a new negotiator had been assigned. The Seattle Short Sales, Inc., case manager prepared and sent off the package with the new $350,000 offer. Through February and early March, the Seattle Short Sales, Inc., case manager attempted to contact Chase about the case, but received no updates. Meanwhile, the sellers chose to declare bankruptcy. By March 15, the buyer indicated that they would continue to wait for the bankruptcy to proceed and for short sale approval, but that they wanted to lower their offer to $330,000.

On March 17, the Chase negotiator finally made contact. The Seattle Short Sales, Inc., case manager prepared documents with the new $330,000 offer. On March 24, the negotiator indicated that she might be able to approve the sale at “a little less than” $350,000, but that $335,000 would not be approved. She also requested additional financial documents.

The Seattle Short Sales, Inc., case manager requested all of the updated financial documents, including the bankruptcy documents, from the sellers, and on April 13 repackaged the short sale package and sent it to both lenders.

On April 14, the SLS negotiator indicated that the offer of $4,000 to settle the loan would not meet investor expectations, which would be around $15,000. Seattle Short Sales, Inc., worked at upping the offer from Chase to $6,000, and requesting contributions from all other parties to bring the offer to the second lender up to an amount approaching $15,000. Meanwhile, Chase indicated that they had a new negotiator on the case and would be ordering a new BPO.

On April 28, the new Chase negotiator indicated that the new BPO was in line with the current offer, and requested updated financial documents. The sellers, however, were now entering divorce proceedings, so paperwork was revised to reflect that only the husband was participating in this short sale.

On May 25, the Chase negotiator indicated that the offer would be approved, but that the bankruptcy would have to be discharged, or a letter from the court granting permission for the short sale would have to be issued, before the sale could go ahead. On June 9, a letter authorizing the sale was issued.

On June 10, the case was resubmitted to Chase, awaiting a new negotiator to be assigned, and a new BPO to be ordered, so it can be approved again. On June 22, Chase indicated that, due to the backlog in approvals, they did not know when the new negotiator would be assigned. Meanwhile, the second lender indicated that they would keep their case open, awaiting approval from the first lender.

On June 28, Chase assigned a new negotiator to the case. On June 30, the negotiator indicated that the purchase offer was reasonable, and requested further signed documents. Through early July, the Seattle Short Sales, Inc., case manager continued to contact Chase for updates. On July 12, the negotiator indicated that the file was now with the investor.

On July 15, Chase issued their approval letter for the short sale, allowing $6,000 to the second lender, with closing by August 30. Seattle Short Sales worked at coming up with an additional $4,000 from other parties to meet the second lender’s minimum required proceeds of $10,000.

On July 20, SLS as second lender issued their approval letter for the short sale.

Result:
The seller, undergoing financial distress due to unemployment and unpaid wages, as well as working through two divorces, was able to relieve himself from debts he could not pay by combining bankruptcy with a short sale.

He was able to sell the home that he could no longer afford, receiving a discount of $82,000 on the balance owing on his first mortgage, and a discount of $90,000 on the balance wing on his second mortgage. The total savings were $172,000, and he was waived of ever having to pay back these deficiency balances, and able to move ahead with his life without these debts hanging over him.

To download a copy of the short sale 1st approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=89963

To download a copy of the short sale 2nd approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=90005

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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Learn how to get your Chase short sale approved in this Chase Short Sale Case Study.

Chase Short Sale Case Study:

Property Location: Kenmore, WA - King County

1st Lender: Chase

Hardship:
“We are having troubles making our house payments due to my previous job. I just had to leave it because it is commission based, and my income was fluctuating way too much, mostly down, to be able to make my payments.

“The only way to stabilize my income was to move to another area and I was able to get a management position that is only partially commission based, but even that is not enough to cover the mortgage and pay rent or another mortgage where we had to move to. The position is too far away to make it possible to commute to my new position from the home.

“We intended to pay for this house and had intended to live in it for many years. My income for years was stable, but with the change in the economy my position was not nearly as stable. Unfortunately, it hasn’t worked out to where we can stay here.

“We are really upside down in this house and really need your help in allowing us to do a short sale that is necessary to sell this house. We hope to get as much as possible so that Chase is shorted the smallest amount of money on our loan as possible.”

1st Loan Balance: $547,072

1st Loan Arrears: $8,481

Sales Price: $416,000

Approved Commissions: 5.3%

1st Loan Approved Net Proceeds: $378,056

Timeline:
On January 25, 2011, a signed offer to purchase the home for $399,950 was received. On January 29, Seattle Short Sales, Inc., received the financial paperwork and a copy of the purchase offer, and on February 1st submitted the completed short sale package to the lender.

The homeowner, through the Listing Agent, requested that Chase approve a credit towards repairs, including water damage. The Seattle Short Sales, Inc., case manager indicated that this credit would not likely be approved, either by Chase or by the buyer’s lender.

On March 14, the buyers received the results of the home inspection, indicating that there was serious water damage in the roof, and that the location of the leak was unknown. They indicated that they were still interested in purchasing the property providing that the sale could be approved quickly, as the damage would become worse with time and this was still the middle of the rainy season in Seattle.

Chase requested the buyers’ counter-offer the same day. Their BPO (Brokers Price Opinion) gave an appraised value of $450,000, which means that the minimum acceptable net proceeds to them would be $378,000. The buyers agreed to bring their offer up to $410,000, but now requested an additional $6,000 towards the repairs.

The Seattle Short Sales, Inc., case manager investigated the possibility of processing the sale through the FHA Pre-Foreclosure Program, but the home had not yet been listed for the minimum required time of 120 days.

The Seattle Short Sales worked to get all parties to contribute to helping the deal move forward by asking all to reduce their costs, and asking the buyers to bring their offer up to $416,000. Closing cost credit was reduced to 1%, and the buyers’ and sellers’ agents were asked to help by reducing their commissions. The Listing Agent worked with the Seattle Short Sales, Inc. case manager to see if a sales price of $418,500 would allow all required costs to be covered.

The buyer balked at being asked to raise his purchase price for a third time, and asked the agents to reduce their commissions. The Listing Agent agreed to reduce the commission by $2,500, in order for the deal to go ahead at the $416,000 purchase price.

On April 7, the Chase negotiator indicated that the file was close to being approved, but that the offer only barely met FHA net requirements, and that there would not be enough funds to pay the seller the $1,000 FHA incentive; the seller would have to sign a letter waiving the incentive. The seller, eager to help the deal go ahead, signed the letter the following day.

On April 20, Chase issued their approval letter for the short sale, for closing by May 20.

Result:
The homeowners were able to sell the home that pay cuts meant could not afford to keep, and to avoid being forecloed upon. They paid back their mortgage with a $177,000 discount on the balance owing. Since their loan was an FHA loan. they were waived of ever having to pay back that deficiency balance. and able to start over with new jobs and a new home in their new town.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=87093

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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Learn how to get your Chase short sale approved in this Chase Short Sale Case Study.

Chase Short Sale Case Study:

Property Location: Marysville, WA - Snohomish County

1st Lender: Chase

Hardship:
“I lost my husband in 2006, and at that time I believed I could handle my financial issues. I also lost my daughter in 2007.

“In my recent packets to Chase Bank, I wrote on these subjects - and got no response back - for a hardship case. I only got several runarounds, and was forced to make a decision to get me out of my mortgage deal (to sell out).

“I need somebody to just listen to my case - and to help me out! I do know there are programs through the government to help people out in hardship cases. But I need someone to help me out, to get to these programs.

“This is my home and property of 41 years. And I have lived in this community for 45 years. I never would have believed I would be leaving it.

“I thought losing my husband would have been it. The last thing I would have to suffer with - now this. I have nothing more to say - it’s too painful.”

1st Loan Balance: $220,000

Sales Price: $150,000

Approved Commissions: 6%

1st Loan Approved Net Proceeds: $124,702

Timeline:
On April 6, 2011, a written offer to purchase the home for $150,000 was received. Many of the seller’s financial documents were missing, so Seattle Short Sales, Inc., worked with the seller and their agent in order to assemble necessary information in order to complete the short sale package.

On June 7 the short sale package, complete except for the Title Report, was submitted to the lender. On June 15 the Title Report was received by Seattle Short Sales, Inc., and on June 17 it was forwarded on to the lender to complete the short sale package.

On June 22, the Seattle Short Sales, Inc., case manager followed up with the lender about progress and two days later, on June 24, the lender issued approval for the short sale to be processed through HAFA.

Result:
The homeowner received the help that she needed in accessing the government programs that she had heard about.

She was able to short sale her home through the HAFA program, which means that she was waived of having to pay back the $95,000 deficiency balance that was owing on the mortgage, and she also received the HAFA relocation payment of $3,000 to help her get her new start in life.

And all of this happened quickly: only 17 days from submission of the short sale package to lender approval.

To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=88388

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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