Just in case you haven't heard.. Chase is selling pretty much ALL their second mortgages to a credit collection agency. Well, actually that is what they WANT you to think. What I have reason to believe is that Chase created a new (strong) arm of their company called Regency Collections and handed over all the second mortgages to professional canibals to kill any short sale deal that doesn't involve Chase also as the first mortgage holder. You see, I am told that if Chase also holds the first mortgage then "of course" Regency will accept the $3000 settlement on the HUD to release the lien; however, if Chase isn't the first then watch out! They are standing pretty firm on a MINIMUM of 20% and that's just to release the lien; if you want deficiency to go away then they want 60%! Yeah, I think that every poor struggling homeowner has that laying around and if not, then they'll surely want to come clean and pay it back when they 'get back on their feet'. Oh, and also to complete the corrupt (in my opinion) package.... Regency DOES suggest that the homeowner make a 'special payment to bring down the principal balance" before escrow closes and this will entice them to release the lien with the additional amount that they get 'legally' off the HUD from short sale so they get at least their 20%. Hummm... Does this fall under the ILLEGAL practices that CAR warns agents about or did Chase/Regency get legal advice to make it so they don't have to follow everyone else's rules? Maybe it doesn't apply if the offer is made by a collection company and maybe this is 'special' verbiage that their slimy attorneys can wiggle around and get them off the hook if someone challenges it... Smells fishy to me for sure!!
This is plain and simple- Chase wants their short deals done; but screw the other banks and investors, homeowners that have Chase 2nds. They look to get away with this by hiding under the guise of Regency Collections, but guess what? My bet is this is ALL Chase-. Regency says they didn't "buy" these loans; they are just acting as the credit collector for Chase and that all deals have to be approved by Chase (Chase confirms this) before they can release a lien on a short sale second. It's automatic that Chase will release a 2nd for $3K if Chase is the first mortgage holder; but no how, no way, if someone else holds the first. And in either situation Regency plans to go after the homeowner for deficiency. What a typical Chase tactic, this is a really great way to treat your customers; remember those whose tax money you have so easily taken to save your "Too big to fail company" from crappy business practices. You deserve the break and bail out but to hell with the little guy?? Don't forget that it's all the 'little guys' that made your company and could just as easily help its demise.
Deb Espinoza GRI, ABR, ePro, SFR, CNE
Stage Presence Homes
DebSDRealEstatePro@gmail.com
So Debbie, tell us how you really feel! LOL! Let them have it girl! :o)
Debbie, I know it's a mess. I stopped showing short sales to my buyers and won't even consider one with a second trust if they find one. There's got to be a better way.
I am not a fan of Chase short sales. They have treated my sellers very badly, "losing" documentation, "accidentally" hanging uyp on thema nd me after keeping us in a phone loop for more than an hour, and causing the sellers to lose buyer after buyer for the past 8 months. Their total unresponsiveness to customers in need of their help seems hypocritical to me. Yet Steve Harney recently published this quote from their public relations guy, who was reported as saying, - "We are working on a more proactive approach to short sales by obtaining a listing of our delinquent borrowers who have their property listed for sale and then reaching out to help them sell the property." - JP Morgan Chase spokesman Gary Kishner
Couldn't prove that by my experience with them.
Tori, I am so tired of the bureaucracy and sneaky underhandedness and how else can we ever hope to change it? Expose it. What's the song...? "We're not going to take it... anymore" :-) Rise up REALTORS! YEAH!
Honestly Craig, there are some lenders that are decent. Chase is definitely the WORST. I've had good luck with Citi, Wells, Wachovia,.. The challenge is that almost ALL deals are shorts and we need to clean them out of the system so we can start anew. I think that we've got to hold these lenders accountable for their horrible business practices- and stop supporting supporting their businesses. They have to 'walk the walk' not just 'talk the talk' like Elva says.
Wow, Debbie....I have a Chase first & second with HSBC that was handed over to a collection agency & it is not going well (same type of stuff). Chase gave us approval 2 months ago & they are impatient now & it might not happen because this second (at a collection agency) is not working too well with us....Smells fishy all the way around for your deal. I appreciate you sharing, it will help when I run across this situation for one of my sellers.
Oh, Debbire--I feel your pain! I've been dealing with a SS with an old WaMu 2nd for a couple of years now--I have been hung up on, screamed at, threatened--you name it! All in the name of collecting what pretty much appears to be a bad debt to begin with--a 2nd lien with a name on the debt which is not even on the deed!
I've sold this house FIVE times now--the seller is pretty much resigned to foreclosure, but I still keep trying!
Good luck with yours, and keep posting--this horrible stuff needs to keep coming out in public--maybe what Chase needs is a reminder of WHO their customers are (and soon will not be)!!
After reading Debbire's post I feel better, I have a short client I have been working with since he quit paying his mortgage in October 2008. The 1st Citi approved the short sale after 4 months, the 2nd BofA sent it off to Pennrow and they would not approve the short sale until we came up with a little over 10% of the 2nd, $12k. Now the 1st wont delay the trustee sale.
Oh well, that file is done, off to the next one.
Take care!