Chase Short Sale Outreach Program is Real!

Lately, I have been hearing a lot about an incentive that Chase Bank is offering to homeowners to sell their home as a Short Sale. Some people are saying it's up to 30,000, some are saying it's up to 25,000, and I was not sure if the Chase Short Sale incentive was a rumor or that it was actually being offered to homeowners -- a little too good to be true.

I am here to say that it is true!...I was talking to a Chase representative this week regarding one of my short sale clients, my client was offered a $10,000 incentive that the client will receive once the short sale is completed. I was very happy for the client -- so happy that I almost ended the conversation with the representative without getting the information about the short sale program. But I held it together and got a few details.

They are;

The name of the program is -- Chase Short Sale Outreach Program

It's a program designed to help motivate homeowners in an effort to prevent foreclosure.

It's is on loans where Chase is the investor.

Not sure if there is a maximum incentive amount.

Since the program is so new, this is all the information the representative could give me. I am sure we'll be hearing about it more in the near future. My opinion -- I think the short sale incentive is a great way to help homeowners start fresh and get back on their feet. So far my experience in dealing with Chase has been nothing but positive -- they are the most helpful in reaching out and getting the short sale closed.

A Short Sale Buyer Can Find That “Pot of Gold” With A Short Sale, By Having Patience

We all know about the famous Irish folklore that says there is a “pot of gold at the end of the rainbow” -- appropriate for today as it is pouring down rain while I am writing this post. I’d relate the reward that a short sale buyer can reap by having patience during the short sale process to that “pot of gold at the end of the rainbow”.

Take a short sale listing of mine that recently closed in Aurora, IL. My short sale seller originally purchased the townhouse for $200,000, and the short sale buyer was able to purchase the townhouse that was partially rehabbed for $115,000 -- the short sale buyer’s patience paid off.

I’m not saying that the short sale buyer was not wanting to throw in the towel many times -- because she was. But we all, including the buyer’s agent and buyer’s attorney worked together as a team to get the short sale buyer to the finish line.

I believe, with that some prep work -- the short sale buyer can reap the reward that can be found by having patience during the short sale process.

Here are a few things that a short sale buyer can to prepare before entering into a short sale purchase:

• Plan ahead -- if the short sale buyer has a target move date in mind, then start the purchase process early.
• Get qualified for a mortgage.
• Knowledge is power -- find a buyer’s agent that is knowledgeable about the short sale process -- not a negative Nelly that says, “oh no short sales do not work” because that agent is not looking out for the short sale buyer’s best interest. The short sale buyer’s agent can guide the buyer through the short sale process and help with any questions along the way.
• Most importantly -- have patience, patience, patience -- a short sale is a process, there is no doubt about it.

If a short sale buyer has the knowledge and resources to make it to the finish line, then they will reap the reward that IS at the “end of the rainbow”.

Bank of America Cooperative Short Sales -- Sound too Good to Be True?

When I first started watching a webinar on "Bank of America Cooperate Short Sales", my first reaction was -- This program sounds great! A few key points were; the short sale process is started immediately, my clients get $2500 toward moving cost expense and a faster turn around time on the short sale decision. Great!

But then the skeptic in me made it's appearance. I started thinking -- this sounds too good to be true. Since I dedicate time everyday to improve my knowledge on short sales. I do this in an effort to better serve Naperville Area Short Sale sellers. So I decided to dig deeper, and what I discovered were a few drawbacks for the short sale seller.

On the one hand, the purpose for the cooperative program is to close short sales faster. Which it might -- rather than waiting for an offer to be received, all the leg work is done in the beginning, prior to an offer. The seller's paperwork is submitted, the BPO is ordered, sellers qualification and value is reviewed, and bank determines the list price. This is all great for a short sale buyer -- last wait time.

But, on the other hand -- for  the short sale seller, there are a few drawbacks -- In the Cooperative Short Sale Program; Bank of America retains the rights to collect on the balance, the investor may require cash contribution or promissory note, marketing time is 120 days -- if at the end of the 120 days if the property has not sold, it will then be a forced deed in lieu.

What I see here is a -- win, win, win for Bank of America, no so much so for the Short Sale Seller.

Foreclosure Postponed on my Wells Fargo Short Sale!

As a short sale agent, it gets very nerve-racking when the sheriff's sale date is approaching on any of my short sale listings. One short sale listing in particular, we were fortunate that the lender was Wells Fargo.

In November 2010, the National Association of Realtors reported that Wells Fargo had modified it's existing guidelines to allow the postponement of a scheduled foreclosure in connection with a short sale, but only in certain situations. This modification pertains to loans that are owned by Wells Fargo (including Wachovia), as well as loans serviced by Wells Fargo but owned by an investor.

The Wells Fargo policy will allow for one foreclosure postponement only if specified criteria are met, which are:

(1) Wells Fargo has a short sale purchase contract in hand that has been approved (including approvals from junior lien holders and mortgage insurers, if applicable).

(2) the buyer has proof of funds or financing approved.

(3) the short sale can close within 30 days of the scheduled foreclosure sale.

However, Wells Fargo did note that not all investors will allow the postponements and added that in jurisdictions where the courts will not approve the delay, the postponement policy will not apply. Although with files that do not qualify under these guidelines, Wells Fargo is willing to address them on a case-by-case basis.

With regard to my listing, we were able to have the sheriff's sale date postponed for 60 days. I was glad to be able to help my client and move forward with the short sale.

Short Sale Success in Naperville IL - Another Closed Short Sale!

This week started with my Naperville short sale closing. I was thrilled for my sellers since it was a stressful time for them, and closing on their home has taken away some of that stress. They were amazing people that have a lot on their plate, and they were truly a pleasure to work with.

It was not an easy task to get to the closing table. We originally received an offer after being on the market for only two weeks, but in the middle of the negotiating, the buyer's job situation changed and therefore needed to back out of the contract. Thankfully, 30 days later, we received a second contract which closed 60 days later -- that in itself is reward for me.

My short sale sellers originally purchased the home for $309,900 and the short sale was approved for $239,000. No contribution from the sellers and the deficiency was waived.

As a short sale agent, my goal has been accomplished. Another successful Short Sale closing!

In the market for a Naperville Short Sale? Before jumping in, Elizabeth Weintraub's article is a must read. Elizabeth gives a great explanation on how difficult the short sale process is for the Short Sale seller. Short Sale buyers and their agent's need to read and understand before deciding to walking away...

Thanks Bob Hertzog for bringing this to our attention!

If you are behind on your mortgage and considering a Short Sale in Naperville or surrounding areas, this is a must read for you.