Do The Math

Elsa & her Husband Efrain were happy to get an offer on their investment property, they were getting nervous since the foreclosure was scheduled just a couple of weeks away. After waiting for eight (8) weeks they finally got the short sale approved with Chase Home Loans. The offer was for $195,000 with a net to the bank of $168,301 and closing to be within two (2) weeks.

The buyer was excited to finally get the process going and get a mortgage. Since there was no guarantee that the short sale would be approved, the buyer was waiting on the approval before ordering the appraisal, which was required by the lender.

After submitting the appraisal to the lender, the buyer was informed that it would be about (ten) 10 days for a clear to close. The only challenge was that the foreclosure date was just a few days before the closing.

After pleading our case to the negotiator and the Attorney for Chase and requesting just a few more days to close on this property, we were turned down. Our calls to supervisors and higher ups went unanswered and the property went up for sale on September 26, 2007 .Ultimately the bank took back the property after no bids were made.

As of today the home is listed for $177,000 with $1,500 incentive to the selling agent, $5,000 to buyer towards closing cost and a $5,500 credit to the buyer for repairs. Add another $10,620 for the Realtors commission, $1,239 for doc stamps and $3,667.00 in taxes. This would make the net to the bank $149,974 which is $18,327 less than what they would have netted with the Short Sale, not to mention the cost to foreclose on the property. Now Chase, I ask you: Do your investors know how logical and fair this offer was? After all a non performing asset on the books really is an ass in the way.

About the Authors:

Mia Lutz & Luz De La Cruz of Say No To The Bank, are avidly seeking the attention of the Lenders to make them aware of their internal conflicts and ways to come together to solve this housing crisis.