When we received our most recent Chase Short Sale approval on behalf of our Newark, NJ client, we weren’t surprised that the offer was approved. Nor were we particularly caught off guard by the amount of debt being forgiven, approximately $136,000 worth, one of the smaller short sale amounts we’ve gotten approved recently.
What caught our eye about this Chase Short Sale approval was the seller incentive being paid. $20,000.
Yes, a $20,000 seller incentive was being offered on this Chase Short Sale. We have had seller incentives regularly approved on our Chase Short Sales, most in the range of $1,000 to $3,000. But we were absolutely stunned at the proposed seller incentive being offered by the bank in this Chase short sale.
We didn’t believe it, but it’s true. If you don’t believe it, here is a link to the Chase Short Sale approval letter offering the $20K seller incentive. The confidential information has been blacked out, but the important stuff is still there.
The Chase Short Sale approval was beneficial to this homeowner, not only because of the generous seller incentive fee, but also because:
There is no deficiency balance or judgment going forward
The homeowner is permitted to stay in the home while the Chase Short Sale is being processed
There is no tax consequence to the homeowner as a result of the forgiven mortgage debt
The homeowner avoided more serious credit damage that would have resulted from a Foreclosure
Anecdotal evidence by scanning blogs and speaking with other Short Sale agents has uncovered the fact that many homeowners are being offered these enormous borrower incentive fees with Chase Short Sales. If you’re Homeowner with an underwater Chase mortgage, thinking about a Deed-in-Lieu of Foreclosure or walking away from your home altogether, maybe a Chase Short Sale with a $20K incentive fee will change your mind.