JP Morgan Chase, like several of the larger banks is taking a more aggressive approach to short sales to avoid foreclosure. In addition to offering thousands of dollars in cash incentives at the closing table, Chase is now sending out letters to some of their borrower’s, offering a cash for short sale opportunity to underwater homeowners.
According to Chase Bank Vice President Bill Carr, the lender is looking to close short sales in 30 days or less. In a recent webinar sponsored by HousingWire, Carr claimed they are doing everything they can to avoid foreclosure.
Like Wells Fargo, Chase recently began processing short sales on the Equator platform. Bank of America has been processing short sales on Equator for several years now. Originally developed for processing Bank owned REO properties, Equator offers more accountability and potentially better communication for all parties involved. I will talk more about the benefits and how to’s of working a transaction on Equator in a future post.
Under the Short Sale Accelerator Program Chase offers their borrowers substantial cash incentives and deficiency waivers (portfolio specific) to list and sell properties. Other benefits include preapproved offer acceptance, providing a preapproved price for sellers and their short sale realtors to advertise which Chase agrees to accept. This cuts down on the time buyers have to wait for an approval of their offer with a better chance for a successful transaction.
A few things Chase recommends Short Sale Specialist Realtors can do to help provide a smoother short sale transaction:
- Set reasonable expectations regarding timelines and valuations.
- Know your seller. Properly prequalify your buyer!
- Submit complete short sale request prior to receiving a contract or at time of listing – do not wait for a buyer! Start the process!
- Return required documents promptly (within 3 days of request)
- Ensure proposed transaction I “at arm’s length” and there is no potential conflict of interest.
Chase Short Sale Resources:
Short Sale Hotline: 866-233-5320
Chase.com/foreclosure alternatives or chase.com/hafa