In an attempt to help more consumers who are facing foreclosure Chase has streamlined their short sale process to expedite the short sale process. We will cover the basics on the process and timeline in this article. Chase will let you start the short sale process prior to having an offer on your property but in order to start the process you have to show a legitimate financial hardship, meaning something has happened since you have taken out the loan that has changed your financial picture. Here are examples of what most lenders and investors accept as hardships:
Hardships to Qualify for a Short Sale:
- Loss of employment
- Business Failure
- Damage to the property(could have been under insured)
- Death of a Spouse of wage earner
- Death of a non-wage earner-for example- a family member who watched the seller's children and now they have to pay to put them in child care, or they were a financial contributor even though they weren't on mortgage.
- Sever illness
- Inheritance(inherited an underwater property, cannot pay taxes etc...)
- Military Service
- Payment increase or mortgage adjustment
- Insurance or tax increase
- Legal separation
- To much debt vs income
- Combination of above
These are all pretty self-explanatory but you need to remember that whatever the hardship, it has to be documented and provable. If there is an income change you will show it to the lender via pay stubs and tax returns; if it is an illness you will have to provide medical records; divorce - you have to show the divorce decree. Whatever the hardship, the more information you provide to support the claim the easier it is to show the bank there is a true hardship.
The very first step in the short sale process with Chase is to gather all of the documents needed for the short sale package (we will talk more about what is needed for the Chase package in another post) you can go directly to the link below their package and get information on what you need. You can get it here: https://www.chase.com/ccpmweb/chf/document/ChaseShortSaleFull.pdf
Understand that you cannot start the short sale process with Chase until they receive your financial package.
To perform a short sale with Chase you will also have to list the property for sale. To avoid time delays you should have most of your financial package together. It is imperative that you work with an agent who is extremely versed on Chase short sales to ensure success in the process.
Once Chase has your package and you have it listed they will verify that you qualify for a short sale and they will set up you up with a “list assist “ professional that will work with your agent to order a valuation on your property and verify all documents throughout the process. The list assist professional will inform your agent of the value range once it is received and will work with your agent until you receive an offer; then it will be assigned to a negotiator who will review the actual offer.
Now that you have an understanding of the setup of the process here is some information on timelines based on who the investor of the loan is (meaning who actually owns the loan). Please note that these timelines are based on after the bank has received a complete package from you. Please also note that a short sale can be “pre-approved”.
Chase short sale timelines based on investor:
FHA backed mortgage 45-60 days from receipt of complete offer(30 days for ATP then 15-30 for offer approval if it meets terms of the ATP)
Fannie-Freddie backed 60 days for approval
USDA 60-75 days for approval
Portfolio owned (meaning Chase owns the loan) 45-60 days although these are closer to 45 days as Chase does not have to get approval from the investor when they can make the decision in-house.
In order to meet these timelines it is important that you and your agent start the short sale process prior to having an offer so that your documents can be reviewed and your eligibility can be determined since both of these steps have to take place regardless of having an offer in, or not.
Check out www.easternshorehomesolutions.com for more information on short sales and Chase or contact us for more information.