Frequently Asked Questions

Selling the home for less than you owe


How do I start the process?

First, complete and send your application for mortgage assistance. Once you find out if you're eligible for this option, we'll work with you and your real estate agent throughout the selling process to list your home at a price that's comparable to similar homes for sale in your neighborhood.

Are there any other benefits to this program?

You may be eligible for the government's Home Affordable Foreclosure Alternatives (HAFA) program, or other programs that provide additional options and financial incentives to avoid foreclosure.

If you qualify to sell the home for less than you owe through the HAFA program, you may receive financial assistance to help with relocation expenses when you sell the home.

If I sell the home for less than I owe, will I be required to pay the difference between the amount I owe and the amount I sell the home for?

When you sell the home for less than you owe, the difference between what you owe on the mortgage balance and what the property sells for is called a deficiency - and we may be able to waive the deficiency balance.

If we're able to waive the deficiency, you won't have to pay the difference. If we can't waive your deficiency, you could still be responsible for the difference between the mortgage balance and the sale amount.

Reducing the amount you owe, as well as any payments made to you under the program, may be reported to the IRS and may have tax implications. Please discuss any implications with your tax advisor.

My loan is already in foreclosure. Can I still pursue the option to sell the home for less than I owe?

Yes, you may be eligible. Even if your account is in active foreclosure status, you may still be able to sell the home for less than you owe to avoid foreclosure.

Submitting a request doesn't stop the foreclosure referral, process or sale. A signed agreement of sale must be approved before the foreclosure sale date.

My loan is up to date. Could I be eligible to sell the home for less than I owe?

Yes, if you can show that you're struggling to make your payment due to financial hardship. Send your application for mortgage assistance to find out if you're eligible to sell the home for less than you owe and avoid foreclosure.

Can I sell the home for less than I owe if I have more than one mortgage on my property?

Yes, you may still be eligible. However, if your second lien is with another bank, we'll need to make sure the owner of that mortgage loan approves the sale of the home.

Does Chase choose a real estate agent? How do I find a real estate agent?

You can choose the real estate agent you want to work with. But if you need help, we can recommend an agent who has experience working with mortgage companies. We'll work with you and your real estate agent throughout the sale process to make it as easy as possible.

How long does the process take?

Once you complete and send in all the documentation we need to review your application, you will find out what options you are eligible for within 30 days.

What can I do to make the home sell faster?

If you're having trouble selling the home, make sure you work with us and your real estate agent to make sure your home is listed at a competitive price.

I have an offer on my property and I need help selling the home for less than I owe. What do I need to do?

First, you must complete and send your application for mortgage assistance to find out if you're eligible to sell the home for less than you owe and avoid foreclosure.

If you are eligible to sell the home for less than you owe, the process is very similar to a regular home sale, except your real estate agent will send any offers on the home to us for approval or counteroffer. We'll respond to any offers within 14 days. Once there is an agreed-upon price, the standard sale and closing process will occur.

Who can I contact if I have questions or receive an offer from a qualified borrower?

You can contact your Customer Assistance Specialist if you have any questions throughout the home sale process. Keep in mind that once an offer is received, it could take up to 30 days for a decision to be made.

If you still have questions after speaking with your Customer Assistance Specialist, call us at 1-866-209-1720.

Will I have to pay taxes?

Reducing the amount you owe, as well as any payments made to you under the program, may be reported to the IRS and may have tax implications. Please discuss any implications with your tax advisor.

How will this affect my credit score?

We can't determine what impact principal forgiveness or the sale of a home for less than what you owe will have on your credit rating. It may have a negative impact. Credit bureaus that determine credit ratings will receive notice that your account was paid in full for less than the full balance.

Will Chase charge a fee if I sell the home for less than I owe?

No. We do not charge fees for the processing or completion of a home sale.

I currently rent my property and do not live in the home. Could I be considered for the program?

Yes, you may still be eligible. But, you must include rental income documentation, which will include bank statements, rental agreements or an explanation letter if rents are not being paid.

Complete and send your application for mortgage assistance to find out if you're eligible to sell the home for less than you owe and avoid foreclosure.

I am currently in bankruptcy, can I be considered for the program?

Yes, you may still be eligible. Talk to your bankruptcy attorney about the process of selling your property during a bankruptcy.

Can't I just give my property to Chase?

You may be able to release the property to us if you have clear title. Clear title means that there are no other liens or payments owed on the property.

Find out more by reading frequently asked questions and send your application for mortgage assistance to find out if you are eligible to release your property to Chase and avoid foreclosure.