Do You Have A Chase Mortgage and Behind in Payments?

There is a rumor that Chase is giving underwater homeowners up to $30,000 to initiate a short sale on their past due mortgages to avoid  foreclosure. This is really big. What this tells me is that Chase would rather you do a short sale than have your home go to foreclosure. Why, bottom line is their P&L.

Not all Chase mortgages will be eligible for this incentive. The only loans will be those owned by Chase – not serviced by Chase. To find out if Chase owns your loan or services it, give them a call. If the loan was sold to an investor, and Chase is the servicer all bets are off.

Many people are confused by the “servicer”, “in house mortgage” and “investor.”  When a bank services a loan, they get a fee based on the principal balance to manage the account, they are not the decision makers on allowing a short sale.  The decision on a short sale is solely the decision of the investor who owns the loan. When they own the loan or some term it a portfolio loan, the bank is the decision maker.

Now just because Chase owns you mortgage, don’t get too excited about the cash incentive. You will still have to undergo all the requirements to be eligible for a short sale, i.e. a hardship which is making it difficult for you to make your mortgage payments.

About Linda Urbick Linda

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