Short Sale Denial (auction, foreclose, mortgage, mortgage)

[Piper TJ]

Mortgage lender= Chase * Assistance specialist out for the week so can't get direct answers.

Submitted request for short sale based on:
- Relocation due to job
- Loss of income due to medical conditions(disability not approved)

Chase decision letter states that only option available is complete reinstatement by paying all back payments. Short sale and other plans are not an option. Short sale denial decision states "We service your mortgage on behalf of an insurer, a guarantor, or investor or group of investors and can only approve certain programs."

Does that statement preclude even an appeal based on....what? Anyone familiar with this or Chase's tactics?

[tinytrump]

sorry to hear-

The bank is the "servicer" of the mortgage. The "investor" sitting behind the loan may have had insurance that paid them "more money" to foreclose vs. accepting a short sale offer. Try to get someone involved with the mtg process who really knows.

[tinytrump]

This from another forum- I love it-- but I am not sure if would apply in all states,,,, banks have their 16 suited lawyers by their side at all times.


I have closed all of the short sales that I have listed. It could be because when I submit a full price market value offer that is denied (and I've had that happen several times), I send a nice letter letting my negociator (cc thier boss) that goes something like this:

"I hope this is not the case at your workplace, but there are some banks/bank programs that reject reasonable offers, then either foreclose on the owners and/or have them complete a deed in lieu and then sell (either by auction or REO agent) the property for amounts less than the offers received during the short sale process. I don't understand the logic behind this, but I do know that it is a categorized as a deceptive business practice under the law and subject to fines and penalties whether done intentionally or unintentionally.

As you know, I have been working on this file for (insert time) and I have complied with all of the additional information that you have requested from me. I need to inform you that if the property is deeded to the bank and either auctioned off or placed with an REO agent, if the property sells for anything less than (insert my highest offer) at any time, I will be bringing an action against (insert bank name) for "Intentional Interference of Economic Advantage" and "Deceptive Business Practices". I hope that it does not come to this, but I have had to do this in the past to insure that my work is not done in vain."

I haven't had to file a suit yet, but I am prepared to do so if needed because I put alot of effort into educating the buyers and sellers involved and I have LITERALLY worked on some short sales for years. I hope this helps.
Chrissy Robbins, Agent, Sherman Oaks, CA

[EngGirl]

Actually I saw it happening in my area when short sale was denied, and later went for lower price. I guess after all lender can refuse any short sale. For example, if someone just decided to relocate somewhere far far away it's not enough for short sale approval by some lender's standards.