Short Sale Specialist Network

Realtor Short Sales Training and Resources

Beware of Chase/HAFA!!!

I had a second mortgage with Chase for approximately five years. They were paid on time, never late for every payment. In March, 2010, my father passed away suddenly of a heart attack. I could not afford the house that he and I shared/owed together on my own. I thought HAFA would be my saving grace. I could not have been more wrong!!! I met every qualification - it was my primary residence, was worth nowhere near the HAFA limit and I wasn't able to make the payment to due circumstances out of my control. I received a full price offer on the home on August 6, 2010 and it was submitted to both mortgages. The first was slow - understaffed and overwhelmed - but they eventually got it done. Chase was a different story. They would ask for the same forms five or six times, saying they never received the fax. The buyer even upped the offer $5000 in mid-Novemeber, just trying to get this done. On December 1st (four months after they got a full price offer!!) I received a call from LCS Finanacial, a collection agency saying they were calling about my account with Chase. I told them that Chase had a full price offer for over four months so they needed to call Chase to find out what the problem was. I then learned that LCS was a collection agency, hired by Chase, to collect on this and they didn't participate in HAFA. Rather than $2500 that Chase would have gotten through HAFA, they got that plus the $3000 I was to be alloted for moving expenses, plus I had to bring $1000 to the closing. Ahh...if only it ended there. No, that was just to get them to appove the sale. They refused to release me from the deficiency. I had to either negotiate a settlement or pay over $36,000 for the next 10 years. Nothing like negotiating with a gun to your head. Oh - and any settlement had to be approved by Chase. This was basically Chase's way of getting around HAFA. Rather than $2500 they would have gotten through HAFA, they ended up with over $16,000!!!!! I did everything they asked during the sale, thinking I was getting somewhere. I had no idea they were just killing time until they could work the system. Be aware!!!!!!!

0 members like this

Replies to This Discussion

Permalink Reply by Angela Alfe on October 10, 2011 at 7:03pm

Unfortunately, people who do not have someone who understands the system working with them happen to find this stuff out the hard way. I'm so sorry you got hammered like that. :(

Permalink Reply by Jennifer A. Day on October 10, 2011 at 7:38pm

No, Chase understood the system quite well and worked it to their advantage. I have complained to their President and pretty much anyone who will listen to me. They've been "reviewing" the file for the past six weeks and keep sending me letters every two weeks that they need more time. I'll be interested to see what their respoonse is. If they say they won't do anything, I'll tell them I have people in the media, attorneys and politicians who are awaiting the outcome of their "review" since this basically amounts to fraud and deceptive business practice. There was NO warning that they were even thinking of doing this. I talked to the rep at Chase the day before who said they were just finalizing everything. After I got the call from LCS, she refused to talk to me - saying it no longer belonged to Chase and they could do nothing. Not true - they still controlled it but used this LCS as a cover to not have to go through HAFA and get more money.

Permalink Reply by Angela Alfe on October 10, 2011 at 7:58pm

Look at your final approvals that you obtained to close. If they show HAFA on them, then you have a case for not having a deficiency and should pursue that. However, if there is no mention of HAFA on your approvals, then it was not a HAFA approved short sale and you do not have HAFA protection.

You should consider contacting your attorney and have him/her review your documents with you. Good luck!

Permalink Reply by Jennifer A. Day on October 10, 2011 at 8:09pm

Maybe you're missing the point here. It was supposed to be through HAFA. I filled out all HAFA paperwork with Chase and that's the only thing that was EVER discussed. It wasn't until FOUR months after they had a full price offer that they pulled the rug out from under me and "turned it" over to this supposed collection agency. If they'd turned it over to an actual collection agency, Chase would have taken whatever as payment from LCS and then not care what this LCS got as a settlement. They didn't, though. Chase used this LCS as a cover to avoid HAFA and get paid more money. Any settlement I made for the deficiency, had to be approved by Chase - not LCS. Chase still controlled the debt but used this LCS to avoid having to go through HAFA. THAT is deceptive business practice because they still controlled the debt. They just didn't want to settle for $2500 and instead worked the system so they got over $16,000.

Permalink Reply by Angela Alfe on October 10, 2011 at 8:29pm

Ok, I'm missing a lot here...

But, you may be better off contacting the Fannie Mae Help Desk. You should have your HAFA paperwork that you submitted to the lender, the date it was submitted, any contact info during that process, plus the date it was transferred, approval letters, etc. They would be able to advise you more.

I hope you get it all straightened out!

Permalink Reply by Jennifer A. Day on October 10, 2011 at 8:37pm

No - everything is done and settled. I doubt there is anything Fannie Mae can do now. I'm just trying to warn people of the deceptive business practice and sleazy lengths that Chase will go to in order to get more money. They drug their feet, wasting time until they could turn it over to a collection agency and then used this LCS's name to make it look like they now controlled it. Chase still controlled every aspect of it. Even on my credit report, it shows a settlement with Chase. LCS is nowhere on my credit report.

RSS

Welcome to
Short Sale Specialist Network

Sign Up
or Sign In

Or sign in with:

Short Sale Agents

~ JOIN US ~

We Refer Thousands of

Listings to agents like YOU!

_____________________

Customer Service (877)737-4903

Contact our support staff CLICK HERE

___________________

____________________

Realtor Short Sale Training Program

____________________

______________________

Always seek legal advice and representation. The Short Sale Specialist Network and First Coast Realty Associates assume no responsibility for the content of this website.