Although JPMorgan Chase & Co has not approved as many short sales as Bank of America, they have been ranked second in bank approved short sales. In 2001 alone, the bank went through with shortsale transactions on approximately 61% of their delinquent mortgage liquidations. This was a huge change from 2008, when short sale short sales only made up about 25% of all their delinquent mortgage liquidations. According to analysts from Chase, they take a 56% average loss on each loan that results in a short sale.
In the past, JPMorgan Chase has been known for taking a hard line with borrowers pursuing a short sale. In 2010, the bank started sending preapproval letters for short sales that notified borrowers that they could still be on the hook for any debt that was not covered by the sale’s proceeds. The mortgage servicer was working hard to recoup as much money as possible. However, since then, Chase has changed their tactics and become much easier for homeowners to work with when pursuing the short sale option. Now, the bank often offers cash incentives to homeowners who are willing to go through with a shortsale transaction.
Starting the Shortsale Process with JPMorgan Chase & Co
According to the Chase Homeownership Center, homeowners can begin starting this process by submitting a formal request to find out if they are eligible for a short sale with the bank. After submitting the request, the bank suggests that homeowners look for a real estate agent who is experienced in dealing with short sale transactions. The bank will offer assistance to homeowners having a difficult time finding a good agent. Once an agent has been found, the listing agreement can be sent to the bank and Chase will then help homeowners list their home at a price that is comparable to other properties in the area.
Chase’s Short Sale Information Packet
The formal request homeowners must submit to find out if they are eligible for a shortsale is included in the Short Sale Information Packet from Chase. This packet must be completed in its entirety, including signatures in all required areas, then mailed or faxed to the bank with all documentation required. Homeowners are urged to keep a copy of all documentation. Included in this packed, homebuyers will find a requirement documentation checklist that lists all documents that must be sent in along with the packet. Documentation required from homeowners include the following:
- 2 recent paystubs (for wage earners)
- P&L statement (for self employed)
- Bank statements
- Most recent tax return
- Proof of occupancy
- Authorization to Furnish and Release Information
- Request for Mortgage Assistance Form
Authorization to provide information to third parties, a request for mortgage assistance and a request that allows Chase to receive tax return transcripts from the IRS are also included in the packet. Chase offers a special telephone number to homeowners that need help completing the packet as well.
According to JPMorgan Chase & Co, they are willing to work with homeowners that are already in foreclosure, as well as homeowners that are still current on their loans. Even property owners that are renting out a piece of property may be eligible for a short sale with Chase. Their website also states that the short sale process can be completed in less than 30 days after the appropriate documentation is completed and sent in to the bank.