Will these banks approve a short sale?
I have Chase home finance for a first mortgage(80%) and a second with GMAC mortgage(20%). Have any of you had experience of doing a short sale with them. Will they approve it?
Public Comments
- If a bank will approve a short sale does not really depends on the bank where you have your mortgage with, it depends on you personal financial situation. You might want to talk to both banks, but talk to the first mortgage holder first. They will send you a short sale application, you need to fill out and send back to them. I think the problem will be your second Mortgage since it is a different bank. On the other hand, if your property should go into bank foreclosure it would be way worse for the second Mortgage holder as well. My advise talk to the lender. Good Luck
- No bank likes doing a short sale, especially if they think they'll get more of their money back by foreclosing. It's going to depend on the deal offered to them.
- I have heard that Chase is very difficult to deal with. GMAC I'm not sure of. I would think that most lenders will become more flexible as time goes on given the number of potential foreclosures they will be looking at. Just prepare a good short sale package and get a good agent that is experienced with short sales and dealing with banks. You may even look for one that has actually done a short sale with Chase. GMAC will have very little leverage as their 20% is probably almost worthless. If they see that they have no equity in the property they would probably be willing to take very little for a payoff. If GMAC were to foreclose they would inherit the property subject to the Chase loan. If the property is worth about what the Chase loan is then GMAC would have no equity. They would essentially be wasting their time even pursuing a foreclosure. Good Luck!
