Short Sale FAQs
- How do I start a short sale with Chase?
- How do I check the status of a sale and get updates?
Create an account or log on to Equator to track status, upload documents and send and receive secure email communications.
- Who will I be working with at Chase?
We have a dedicated team to assist you through the process. The team will:
- ensure all necessary documents are received and reviewed
- work toward final approval of a competitive offer
- coordinate closing activities with you and the title company
- How does Chase determine the value of a property?
Property value is assessed using an interior Broker Price Opinion (BPO) or an appraisal. The final value will be determined within 7-10 business days after the BPO or appraisal is completed.
You may submit a Comparable Market Analysis with recent property listings and sales in the area, along with any documentation available to support a different value, such as: non-cosmetic repair estimates, inspection results, photographs of damage or a detailed MLS listing history.
- How do we complete the sale if there is another lien on the property?
The investor who owns the mortgage loan may allow for a negotiated amount to be paid to the subordinate or other lien holder(s) from the sale proceeds. Your client will need to obtain approval for a short sale from the other lien holder(s).
If we service a second mortgage on the property, we will be able to help you with both the primary and secondary accounts.
- What costs does Chase pay at closing?
We may pay a portion of reasonable and customary closing costs, including: commission, real estate property taxes, transfer taxes and stamps, title and settlement charges. Other fees should be limited to costs that are required to be paid for transfer of title, such as mechanic's or property tax liens.
Closing costs we may pay for:
- Real estate sales commission customary for the market, which must not exceed 6% of the sales price of the property
- Real estate taxes and other assessments prorated to the date of closing
- Local and state transfer taxes and stamps
- Title and settlement charges
- Attorney fees for settlement services typically provided by a title or escrow company
- Wood-destroying pest inspections and treatment (if required)
- Homeowners Association fees that are past due
- Buyer closing costs
- Any amounts authorized by the lender/servicer
Closing costs we will not pay for:
- Fees paid to a third party to negotiate the sale of the property
- Real estate sales commission paid to your client or the buyer of the property
- Buyer's discount points or mortgage loan origination costs
- I received multiple offers, which one do I submit?
Work with your client to determine which offer you should submit for review. Consider all the costs of each offer as the offer with the highest net proceeds has the best chance to be approved.
Also, it is very important to consider the strength of the buyer. A buyer who is well qualified is more likely to close, which will help ensure a smooth sale of the property.
- What are the biggest delays in approving an offer?
Here are the most typical reasons for delays and how you can prevent them from happening on your transaction:
- Incomplete/Incorrect Documents—Use the Required Document Checklist (PDF) to ensure we receive all of the items needed to approve an offer. Make sure all documents are signed and completed.
- Missing the Broker's Price Opinion (BPO) or appraisal - Ensure that we have the correct contact information to schedule and access the property at the time of the appointment.
- Changes in Offer Terms—Any changes to the purchase contract or estimated HUD-1 may require re-approval. Check both documents to confirm that they are fully signed and that all taxes and lien information is accurate.
- When will my client be paid the relocation or other monetary incentive from Chase?
If your client is eligible for relocation assistance through a program offered by Chase or another investor, that amount must be on the preliminary HUD-1 for approval. Depending on the program, these funds are paid by check either at or outside of closing.
- The sale was approved, but due to delays, didn't close on time. Will Chase approve an extension?
An extension may be requested but we cannot guarantee that one will be approved. You or your client will need to contact us right away to request an extension. We will need an addendum to the sales contract between you and your client, signed by all parties.
- How do I ensure a successful closing?
The final HUD-1 must be submitted 72 hours prior to closing for approval. Additionally, the closing package must include all of the following documents the day of closing:
- Final HUD-1
- All closing documents
- Wire confirmation
- Arm's Length Affidavit
Failure to receive all required documents the day of closing could result in the funds being returned to the title company and a delay to the sale.
- When can I talk to Chase directly about the sale of my client's home?
Your client must complete the Borrower Authorization Form (PDF) which will allow us or our authorized representative to share information about their mortgage with you.
- I am receiving an error message when attempting to access Equator. What should I do?
You will need to contact Equator directly for technical support online or by calling
1-310-469-9167. If you are logged in to Equator and need assistance, you can utilize “Live Chat.”
- As a Realtor, how do I use Equator?
For assistance using Equator, see the Equator Reference Guide for Real Estate Agents (PDF).
- Can the terms of the offer be renegotiated after approval?
Yes, the conditions of the offer can be renegotiated prior to the closing date; however any changes to the terms and conditions must be re-approved and may delay the sale. You will be asked to provide supporting documentation as part of any new evaluation.