What's the Worst Thing Chase Bank Can Do in a Short Sale?

I've heard some short sale agents bad-mouthing Chase Bank because a Chase Bank short sale takes too long. In the overall scheme of things, taking too long isn't the worst thing a short sale bank can do. The worst thing a bank can do is reject the short sale. I have not had a rejected short sale with Chase Bank, knock on wood. In this profession, as a Sacramento short sale agent, it's not wise to never say never, though.

My average time with Chase is running about 120 days. I just closed a Chase short sale on a condo in Sacramento. I don't know why I take these condo short sales. They pay jack crap. I think I made about $1,100 on this last sale. Averaged out over 4 months, that amounts to $9 a day. Obviously, I don't sell short sales just for the money.

I took this short sale listing because it was referred to me by a client. I always take my client referrals. No matter what. It's a matter of principle. I can't ask a client to refer people to me and then reject them, sort of defeats the purpose of referrals. As a courtesy, I take the referral, regardless. You will never see me reject a seller who was referred to me. Ain't gonna happen.

A shot all of my photos in March. Uploaded the listing documents to DocuSign, put on a lockbox and, within a few weeks, we received a really good offer. Two days later, Chase Bank had the entire short sale package, complete with HUD. It took the bank about 10 days to assign a negotiator and schedule the BPO. However, by the end of April, Chase requested all new documents, a new HUD, a closing date of May 30th, and then asked us to redraw the entire contract because one of the sellers had married a few years ago. Chase Bank did not want the seller to sign with a married, legal name.

I love these HUD changes. If all else fails to close the short sale, point to the HUD and ask for a revision. I think that is the short sale negotiator creed. Must be in the Chase short sale handbook. The things negotiators demand are outlandish. They want a middle initial on the HUD. They want the ampersand changed to the word AND. Or they will demand the buyer's side be completed, when we don't have docs and can't really complete it. So, we make it up. HUDs are for the borrower, not the short sale bank. These negotiators have never even heard of RESPA.

By the end of May, escrow and I were still arguing with the negotiators at Chase Bank about the HUD. As usual, the negotiators could not understand that a seller credit on the HUD was not really a credit. It's shown as a credit because it's reflected on the GFE, but it's not. Chase promised us the approval letter was coming, and after several weeks it arrived. We were set to close escrow at the end of June.

What could go wrong now? Well, how about the buyer's loan went south? We started over. Removed one of the buyers from the contract, and resubmitted to Chase. Again, Chase kicked it out because it was confused over the HUD. I reminded Chase that it had already approved this file once. I again explained the HUD process. Meanwhile, the buyer slipped back into a coma, underwriting.

This buyer was in underwriting for more than 30 days. I kid you not. She was unconscious. It got to the point where I questioned the buyer's agent about where she found this mortgage loan officer. I accused her of finding him a Cracker Jack box. Say what you want about Wells Fargo loan reps, eventually they get the job done. Docs were ordered on July 29th. In title August 9th. Chase Bank gave us the short sale extension we needed, and this Sacramento short sale closed.

I continue to tell myself that the worst thing Chase Bank could do is reject the short sale. That sentiment, in a nutshell, is how I survive Sacramento short sales with Chase Bank. They do eventually close.

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Certified HAFA Specialist

 

My Sacramento Real Estate Listings

Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

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The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.

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