Hello All,

I'm a Realtor 3 years into my new career.  I'm in the process of negotiating my first short sale.  The home has two mortgages.  Wells Fargo holds the first and Chase has the second.  A buyer came along and offered cash for the home.  The first lender countered and the buyer accepted. Wells Fargo offered $3000 (non-negotiable) to Chase to release the second lien, but they refused.  The home is nearing foreclosure and I explained to their negotiator that Chase would get zero dollars if this happens.  The seller also indicated that if this deal did not go through, she may consider bankruptcy, and once again, Chase would get zero dollars.  The negotiator then decided to raise the amount to release the lien by Chase to 25% ($10,000).  For whatever reason, this guy feels Chase is better off receiving zero dollars?  Isn't it his job to try to recoup money for Chase?  Didn't they receive billions in stimulus money to help alleviate this problem, not compound it?   Any suggestions or input would be greatly appreciated.

Frustrated in Highland, Indiana

Short sales are very frustrating indeed. They can take forever and are always at risk of not closing. I highly recommend a real estate attorney to contact Chase's loss mitigation department for negotiation. Big banks are quite bureaucratic with their processes. The person at Chase refusing the settlement may just be following written guidelines. This deal sounds like it needs to go up the ladder at Chase.

Good Luck!

Every short sale scenario is deal specific.  With Chase - you may simply not be meeting their internal guidelines.  Remember that there is no rationality or emotion involved.  The amount that is being offered to Chase needs to be an amount that meets their criteria.  Sometimes it is more of an advantage to a junior lien position to let a prpoperty foreclose than spend the time and resources required to process the short sale.  I know that it seems ridiculous for them to take nothing versus something....but, that is because that seems rational outside of their over-loaded system.

I do reccommend having the sellers call Chase and try filing a formal complaint.  Perhaps you can get a higher level decision maker to at least take a look.  Amy Ransdell

billions in stimulus money?? alleviate problems?? nahh... trillions wouldn't have been enough to help out in this situation. I'm sure the mindset is to have their cake (stimulus money), and eat it too (continue to nickle and dime in situations like the one you're going through). I agree with your position though, take it as far up as you can, good luck!