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When dealing with Chase Home Finance when they’re in the 2nd position, you have to be aware that they often charge off the debt and send it to their Recovery Department. This video will go over the goods and the bads and what to do when that happens to you. For more weekly short sale and pre-foreclosure videos visit www.PreforeclosureDailyGrind.com or to ask questions visit www.AskBobLachance.com
Nice. If you have a buyer fund out the 2nd lien before it goes to the Recovery Department, do you have them sign some kind of disclosure or hold harmless if the 1st lienholder decided not to play ball?
I have a deal where Chase is in second position. The loss mitigator says that they will accept my short sale offer but the sellers have to sign paperwork at closing the they are still responsible for the deficiency. Obviously, the sellers don’t want anything to do with that. What do you recommend?
Curious as to what the outcome of this negotiation with Chase Recovery Dept was. I have a 2nd with Chase that I’m trying to negotiate. It is still in short sale dept but they are saying 25% is the lowest they will take.
We ended up sending them 20% and they accepted it. We closed 6 weeks ago. I’d counter them at 20% and explain that you had to scrape the funds together just to get that, and see if they’ll take it.
Thanks Bob. I had offered them 5% to start, then verbally 8%. Then finally I submitted a written offer at 12% which I begged her to submit. She said she would but her manager veto’d it – saying not in guidelines. She did slip and mention they might take 20% as minimum rather than the 25-35% she started at. I’ve read a few posts on other forums where this 20% # for Chase HELOC’s is stated as the least they would take so there must be some validity or guideline to that. Looks like your experience would support that. Thanks for the help.
I just settled off my second loan with Chase. They took $40,000 for $212,000..approx 20%. I am now waiting to get something in writing stating they received my $40,000 and that they are forgive the difference(as they stated they would).
Has anyone else settled with Chase? How long did it take you to get the settlment letter after you paid them? Wells Fargo was better and easier to settle with… at least for me on one of my houses. It could have been that I was in big trouble on that house and had 4 loans on the house. Wells was 3rd and 4th postion and Wells took $32,000 for $255,000, even a better deal.
Keep on negotiating…don’t lose heart. It is tough work to settle but worth it when it’s over!
Bob, Thanks for the information. Quick question though. When Chase offered to wsell at $2,500, could you have paid them without going through the sale? In other words, could the seller have come up with the money right then to get the lien released?
Yes, I had a deal with HSBC in the 2nd position where that was also the case
Just as an update. After refusing to submit my offers for 5% and 8%, the negotiator did submit my offer once I went to 20%. She said it was likely to not be approved, etc, etc. She called me earlier this week saying it had been approved so it appears 20% is some magic # for Chase on 2nds.
One more question for Bob – I have a $90k 2nd/heloc with Wells Fargo. Likely we are looking at short sale or foreclosure. Either way we will be negotiating a settlement with Wells. Any experience in what % they will take on a 2nd?
Thanks
I would expect a minimum of 10% and possibly as high as 40 or 50%, which would mean that they’d probably release it for 20%. I haven’t dealt with Wells Fargo recently on a HELOC but most of them are the same and most lenders work these the same way.
I am working with Chase recovery. I had received approval to release the lien only for $9000.00. Once we needed the extension, I was advised that the negotiator who approved, was no longer handling the file. The new negotiator is now requesting $17,000.00. Now that the seller has contacted him directly, he will not respond to cals or written communications. I have requested his supervisor, who is the same person that gave us the initial approval. Any advise?
I’d keep trying to reach that supervisor. Chase’s Recovery dept doesn’t really have guidelines to follow except to get as much money as possible. So it doesn’t surprise me that all of a sudden this new negotiator wants $17k. In addition to continuing to try for the supervisor, I’d go ahead and have the seller keep calling, so that at least they’ll talk to SOMEONE. And have the seller continue to pose the same argument as you, in which $9k was ALREADY APPROVED, and they’re wasting their time.
I have a ready buyer willing to clear the balance on the second in recovery but the case manager wants them to pay down the second by wiring the money to them upfront before they give me the release for 10% !! I told him that this was bullshit and the answer was ofcourse that I can go to hell !! He would not offer any letter stating that they were taking this money form the buyer and we are still in stalemate. Have escalated the file but no response yet..
Easy question….does anyone have the fax # to Chase recovery? I have been on hold for 52 minutes. Thanks!
Actually, the best thing to do with Chase’s Recovery Dept as far as faxing docs is to call their general # 800-834-9218 and ask who’s assigned to the file, and then ask for their direct fax number, otherwise it probably won’t get to the proper person.
I am in CA and working with Chase recovery. It is a 2nd purchase money, never refi, not HELOC balance 140k. Wells is the 1st and approved at 3k and negotiator at 2nd wants 32k just to release the lien (10% of Wells net) We tried with 7k and negotiator says just let it go to foreclosure. Any thoughts on what they are actually looking for? Would it help if homeowner sends them a letter saying that they are considering BK? Thanks!
First off, I’d try to get more from Wells. Tell them what Chase wants, and ask the negotiator for the most that they’ll allow.
If they say “no” then tell you will try and get the money from seller, buyer, agents and put it on the buyers side of the HUD. Make sure that they’d be ok with that. If they’re not, then the deal is probably dead.
If they are ok with it, then I’d get the funds together and make one last offer to Chase. (also ask about if they will take a promissory note) If they don’t accept it then there’s unfortunately nothing else you can do. We always bring up the fact that BK is an option for our client and if that happens they will get zero!
I just have been dealing with this lady, on Loss Recovery with Chase…She is vicious…! rude…! and perhaps she is just following instructions, but she is making it her little project to make sure nothing gets done…I will probably follow advise and tell them upfront that we can offer them 10K and see if they will take a promissory note for another 20k…did they ever accept a promissory note?
Would it be “Amanda B…” by any chance?(I can’t post her full last name).. They typically seek 20% at closing, and a payment arrangement for the rest, anything other than that and they probably won’t take it. However..if enough time goes by, they may consider it, so it’s always worth fighting for it.
I’m SO glad I found your post. We’ve been dealing with Chase’s recovery department, and you’re right – they’re belligerent SOBs.
The 2nd is charged off, just dropped out of bankruptcy, and they have no recourse. However, they still hold a lien on the house. they won’t let go for less than $32,000, and they’ve been rude and pretty ignorant of the foreclosure process.
They literally told us the first is going to have to take a BIG hit before they’ll negotiate!
Anyway, would it do any good to contact the Ombudsman for Chase and escalate, or offer them 15-20% of the note value? We had an offer in for almost 10%, which they ignored.
Help!
Help! I have a WAMU original HELOC, then Chase and know with ‘AWA’ collection agency. The seller is in a Short Sale and the 1st lien holder BoA has decided to credit a max of 3K to release the lien. The outstanding balance on the 2nd lien is almost 210 thousand and that includes late fees and other fees. The negotiator tells us He will only present the offer to the lien holder if he gets a minimum of 10% which would be 21K. Has anyone been able to negotiate with this company and offer less than 10% of outstanding balance? If yes, please help.
I also have the same issue. B of A is incompetent and does not care to hurry or even communicate with myself(the Realtor) or even the seller which is their customer. B of A will only pay $3K per Freddie Mac guidelines and no matter what the offer is, will only allow Chase the $3K, period.
Any other contributions must be approved by B of A, who says they will not approve it and now I am dealing with Christine H. who gives me a fax number that is always busy, but never returns phone calls.
Long story short, any additional monies to Chase is not allowed. Seller will file BK if this is not resolved, since Chase has turned it into a personal loan, not just a collateralized loan secured by home.
Is the deal dead??
Thanks
We ended up settling for 16.5% of our $59,000 debt on the home equity loan. This was after $5,000 was paid from the 1st to release the lien in order for the home to be sold as a short sale. PRS was the collections agency and they are ruthless there. I had to complain to Chase because they kept refusing to submit my settlement offers. Once I got Chase involved my offer was finally accepted. Although as a side note Chase did tell me that legally they could not talk to me because they signed a contract with PRS to collect on the debt.
i have an approval for a short sale in a first lien by chase. the approval explained that i will have a deficiency of 158k. can they go after me even it is my primary home? the negociator explaned that they will send the deficiency to the recovery department but they will not do a 1099? can they do that for a first mortgage in a primary home? i tried to do a short sale and avoid a foreclosure but at the end it is the same
My experience had Chase approve the short sale however Chase Recovery is collecting the deficiency and they did not issue a 1099. I am not sure though if they will still issue a 1099 once a settlement is reached.
Just looking for advice. Mar 2008 my 2nd held by Chase was charged off but I didn’t find out until I filed my 2010 tax return. I was told that Realtime Resolutions was now handling that loan and the Chase rep said Chase would no longer seek to recover any part of the 2nd. When I contacted Realtime they stated that if I wanted to negotiate a settlement that I would have to contact Chase. Upon doing so Chase stated that they had pulled the loan back from Realtime and moved it to Chase recovery. Through my BK I have paid $12000+ at zero interest on an original amount of $65k. Do you think Chase will take that into consideration when I try and settle for 20%-23% of the $65K. My other option is to try to get a lien strip due to more income being lost since the original BK filing which I intend on notifying my Chase negotiator of.
Please forgive me for this stupid question: Who is Chase Recovery? Is it a division of Chase Home Mortgage or a Collection Agency? If your debt is with Chase Recovery, did Chase Home Mortgage sell it to them?