Chase Short Sale Outreach – Lessons Learned

I recently closed the first Chase Short Sale Outreach listing that was referred to us and I wanted to share some of the details as to how the transaction went.  For more about this program read here.

 Truly An Outreach

As best as I can tell, this is strictly an outreach program being rolled out in phases across the country.  By “Outreach”, I mean that Chase reaches out to homeowners apparently at random.  The listing we just closed was NOT in default.  I will of course make an attempt to have my next Chase file included in this program, but so far it sounds like a one way street.

 Much Easier Than Most

The Documentation required to get this short sale approved was very minimal.  A simple application, the listing agreement, an offer, and a HUD was all that was required.  Chase had requested comps but sent out their own appraiser to establish a value.

I dealt with 2 people total.  A setup person who made sure we had all the documentation necessary, and the actual negotiator who submitted the offer for approval.

Because I was able to get this short sale “pre-approved” before an offer was received, we were able to close this in 2 weeks from receiving a cash offer.  We always get the seller and property set up for a short sale with the lender as soon as it is listed.  There is no time wasted once an offer is received.

One Little Snag…

The main selling point of the short sale out reach (besides the money to the seller) is that there is no deficiency balance due.  However, the approval letter I initially receive didn’t specifically state that.  This was a huge sticking point for the seller.  They would not follow through with this if Chase had any chance of collecting from them down the road.

When I first brought this up to the negotiator at Chase, she gave me some generic response about how the letter was reviewed by their legal team and could not be changed.  She also said that it wouldn’t make sense for them to come after someone after just giving them $15,000.00 at closing.

As much as that 2nd point made sense, I insisted that the seller needed to see that in writing our she would not close and that I wanted to speak to a supervisor.

After putting me on hold she returned to say that she would call me back the next day and see what she could do.

The next day I had a Revised approval letter that stated they would waive the right to pursue the seller for the deficiency.

Everyone is Happy

This was truly a win/win.  Seller was happy to have a minimal impact on her credit and to truly be able to move on with out this following her.  The buyers were impressed with how fast the process went.

I can only speculate that Chase is rolling out this program to free up their cash reserves and limit the number of REO properties they will have in the coming years.

It truly is an aggressive an innovative program.  Having a proactive short sale specialist working on the file doesn’t hurt either.


Feel free to comment, ask questions or share your experiences below.


  1. Erich Hochstuhl says:

    Does anybody have a contact at Chase to obtain a deficiency waiver after a short sale?

    • Call Chase’s Loss Mitigation Department at 800-848-9380. They should have an account rep or single point of contact assigned to the account. If they have your authorization to release on file they will be able to direct you to that person. It’s also possible that if your short sale is already closed, they may have passed the account on to a collection company. You may be doing more harm than good by contacting them. Sometimes it might be better to wait for them to contact the owner of the account before trying to get the waiver after the short sale is complete, otherwise you may be initiating a collection call.


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