I am now starting to get national recognition for my blogs about banks, I thought I would share to my national audience some information about Chase banks and how they operate within the world of short sales from all of my experience of dealing with them and the hundreds of files I have completed or tried to complete with them. I have been doing short sales for over 5 years now in San Diego so my tenure is extensive.
First I would like to address one procedure Chase Bank short sales. On about 50% of my short sale files with them they make it a procedure of speaking with a short sale client on the phone before deciding whether or not they will allow the homeowner to do the short sale. The purpose of this is clear and simple, and I have sat in almost all of these conversations. The reason behind this is, is most of Chase banks representatives that handle short sales are trained in the art of being a debt collector. Their goal is to get the short sale homeowner on the phone to berate them and try to squeeze more money out of them before the property goes to foreclosure. They will say things such as “How could you do this to Chase bank?”, “How could you steal our money?”, “ Can you borrow money friends or family and give it to us?”, “Can you empty your retirement savings (401K) and give that to us?” and also my favorite, “ We will come after you for everything you got for as long as we can!”. Now understand these are clients and homeowners who are already in distress and are trying to do the right thing by doing a short sale on their home. Any attempt to by pass this part of the short sale process will result in Chase Bank closing out the file or denying the short sale. I have seen and heard this first hand and I usually have to coach my clients ever before speaking with Chase Bank and interject when things get out of hand. The whole point of hiring a real estate broker or attorney is so the clients do not have to deal with any additional harassment, but to put it simply Chase Bank does not care about their clients. They only see them as people whose lives they can destroy, to collect further money.
When it comes to approving a short sale, I will say, Chase Bank will approve them (in time) and will try everything they can to maintain the right to collect upon their distressed client in a short sale if they can. If they are they investor (owner of the loan) they will forgive any remaining deficiency balance if your broker has enough experience to negotiate this in the approval letter. If they do not, Chase Bank will try to issue an approval letter stating they will come after the home owner. If Chase Bank is not the investor they will always issue an approval letter stating that they reserve the right to possibly come after the home owner for the balance unless it is fought at the administrative level or with use of an attorney. I have even seen at times that Chase will issue a letter stating they would rather foreclose on a homeowner than allow a short sale, even when the bank will make will make more money with a short sale. So be very careful.
When it comes to loan that are second loans with Chase Bank, which are typically recourse loans, meaning they can come after you for the remaining balance they will almost always issue an approval letter for a short sale stating they will be coming after you. And Chase will always choose to let a property to go to foreclosure and reject a short sale than deviate from this standard approval letter stating they will come after the home owner. Any attempts to bring this to the attention to the administrative level or CEO will go unheard and unanswered because Chase bank would rather sell off this bad debt to a debt collector if they can, and make another dollar than help a distressed homeowner do a short sale and help a community retain its property values.
Bottom line is this. I deal with hundreds of banks of a daily basis in the short sale world, and no other bank treats its clients so poorly and with such viciousness as Chase Bank. I kind of see it as the same situation as when things go bad in life you learn who your friends are who you can count on. When this market started to turn for the worse over 5 years ago every bank developed their own personalities and developed their own methods of dealing with their clients. Banks like Wells Fargo and Wachovia took the high road and treated clients with respect and looked to the future of retaining and keeping distressed homeowners as clients for the future ad also forgave them for any remaining balance on a loan in a short sale. Chase Bank became public enemy number one in my world along with Bank of America, and treat their clients so poorly and I was so appalled that I made a vow to never use Chas Bank again for any of my personal business nor allow any client of mine to ever use them for any banking, loan, or financing of any kind. I made a promise to inform everyone I knew about Chase Bank worked and how they treated clients who were going through the foreclosure or short sale process. So be careful if you are a homeowner with a loan with Chase before you agree to a short sale, and make sure you know what kind of loan you have and make sure your agent or broker knows what they are doing when dealing with Chase, and have the ability to have an attorney negotiate on your behalf if needed. I always have attorneys working with me now when it comes to dealing with Chase bank and their short sales.