Short Sale Involving Chinese Drywall And Chase Bank
I just offered 35-40% of the original note on a Chase financed property with chinese drywall. The offer was made for cash with no contingencies on selling our home or financing approval. What are the odds of this offer getting countered and accepted in time for the April 30th deadline for the $6500 tax credit?
Pretty slim.
The discount on the note is not as important on the discount on the current (perceived) market value. If that is the discount on market value then I agree with the prior posters....
My post might not have been as clear as I thought. Regarding "The offer was a cash offer and it is being submitted to the lender ...." I realize that your offer was a cash offer. When any property is FHA un-insurable other buyers relying on financing are unable to execute that transaction, hence that makes your position more valuable... hence my comment that this house should be heavily discounted from the after repair value. As for a 203k rehab loan... I think these loan types are problematic for many/most borrowers and a seller would prefer a cash buyer even at a much lower contract price.
Regarding the contingency... I believe your post is correct.
As of roughly 4 days ago we finally heard back from Chase and have agreed on a price. The counter offer is higher but not by much. The seller will only agree if he is guaranteed there will be no deficiency judgement. Chase said they would not pursue one and we thought we were in the clear. The next day they said they had to make sure the investor (Freddie Mac) would not pursue a deficiency judgement and that they would get it in writing. Today they are saying (Chase) that they do not have the final word and that we now have to wait of Freddie Mac to sign off on counter offer. Does anyone know how long it takes for Freddie to sign off on the short sale that Chase has approved? Any information would be greatly appreciated.
Scott
I would say: List the property at a price consistant with recent comps in the neighborhood, subject to Lender acceptance.
[addsig]
I would focus on WF rather than Integra. Why does WF have the position that the second should only get $3000 on a $50K balance? That is less than 10% of the outstanding balance. There is nothing for them to lose so they might as well wait to see what happens at foreclosure.
JS
I was under the impression that the 2nd can only go after the homeowner if the 2nd was a non-purchase loan.
I see a nice cottage industry to buy all this loans that have valid redemption rights, buy then for 10/100, and the redeem and find other assets.
Flack,
Actually, finniganps said, "can generally go after".
However, my comment was directed to your assertion that purchase money loans are non-recourse, and, since this seemed to be your basis for disagreement, I was pointing out that for most of the US (hence, generally), purchase money mortgages are recourse loans. Therefore, lenders CAN generally seek a deficiency judgment and go after the defaulting borrower. No one said that they do as a general rule, just that they have the right.