A Realtor in my office just closed a short-sale transaction with Chase. Seller had not paid mortgage payments in almost two years. Not sure what the outstanding mortgage was but it was “forgiven” and seller was released from ever having to pay this back, PLUS (are you all sitting down?) Chase Bank cut a check to the seller for $10,000. This is a true event which happened last month.
How the heck did the seller get ten grand? A short sale means it is sold for less than the current mortgage. Good is bad, bad is good, the whole world is messed up. Good grief.
Any more deals like that?
“This is a true event which happened last month.”
And even stranger...it might have been a good deal for the bank in the long run.
The last thing the banks need are more trashed REOs. So they cut a deal. You stay in the home, take good care of it, do a short sale and we’ll let you walk and give you a check besides. Also saves the cost of a foreclosure.