Banks Are Idiots

[J Scott]

Here's a fun story...it's long, but I think you'll get a good chuckle:

We have a short sale under contract, and there are two mortgages on the property, both held by Chase Bank. To get the short sale approved, there are two separate Chase Bank negotiators that need to negotiate the payoff of the two separate mortgages (let's call them C1 and C2).

C1 says they're happy with our offer and have accepted. C1 also says that they will even agree to pay C2 up to $2800 to get them to release the second mortgage lien. C2 says they want $4300 to release the lien. That seems fair. So, I agreed to pay the extra $1500 to satisfy the C2 mortgage lien.

But, C1 is now saying that they refuse to allow C2 to get anything more than $2800, even if it's ME (the buyer) that's paying it. C1 says they'll foreclose if C2 doesn't accept $2800. And C2 says they won't accept anything less than $4300.

So, basically, one part of Chase Bank is refusing to allow me to pay more money to another part of Chase Bank, and even worse, if C1 forecloses, C2 will get nothing and C1 will ultimately get even less money from a foreclosure.

[Maryann L.]

Ann is too kind. Sorry gang. I'm not very active on BP anymore, but when you get stuck on a short sale file, you have to escalate. MOST lenders have a way to escalate the file, ie, calling their executive departments and a direct route to talk to someone in a higher department to try to resolve the issue. It works in MOST cases.

Once you escalate most times, your issue is resolved within 24 hours.

If you have two files with the same lender, it doesn't mean it's the same investor that backed both. Most lenders are just servicers for a different investor, ie freddie fannie, mtg backed securities, portfolio loans, fha, etc. If you have two different investors EACH may have a different minimum NET requirement so on this file it seems as if that happens. Having two loans with the same servicer doesn't mean each department talks to each other either. In most cases if you have two BOA loans, you're doing one on Equator and one through faxing.

Don't assume it's an easy sail if both loans are with the same servicer. I would say for the MOST part they will and do work together but definitely don't expect that ever time.

GOOD LUCK - Glad it worked out.