Chase is seemingly not hurting these days as the recovery department is on a set course to collect a minimum of 70% for a full release of the deficiency balance to be released. Now to anyone paying 70K on a 100K debt is a savings of 30K (which by the way the IRS does consider to be taxable in many cases — if you qualify for the debt relief act of 2007 then you may not have to pay for any gains (speak to a CPA for tax advice).
Now we have it previously advised to us that the Account Manager can take it into their hands and approve bringing the debt down to a short pay off of 50% of the total debt owed. As per the previous example they would only pay 50% or 50K of a 100K total debt. This would release the homeowner of owing any additional money in the future or expectantly receiving any future phone calls from the lender or their collection hound dogs.
WHAT HAPPENS IF I DON’T HAVE THE MONEY TO SETTLE?
Often we get asked the question of what are the available options for a those that do not have any money, or not nearly enough, to settle with Chase. Programs can change on the daily which is always important prior to taking any of this information into consideration. Currently though as we were last quoted the Account Manager at Chase advised that to get on to a “Chase Payment Arrangement” the homeowner, or now x-homeowner would have to come up with 10% of the balance and they would need to make payment for a period of 6 months. After the 6 months the homeowner would receive a request to make an offer to settle the account in full. Again we come to a cross roads where if the homeowner does not have the money they will have to continue making some sort of payments for a period of time. Generally, if there is to be any additional time granted, it would be to continue making the payments according to the previously agreed upon payment arrangement for another 6 months.
After the last payment, or a year’s period, Chase Home Mortgage will turn around and ask their final time for a settlement. At this time they will no longer accept payments on the debt but will expect for the entirety of the debt to be paid in full or to receive a full and final settlement.
WHAT ARE CHASE’S RECOURSE TO COME AFTER ME?
Often clients ask, “What’s to keep me from walking away?” or “What can they come after that I don’t have anything?” and while legally speaking a client must always seek legal advice from an attorney we are left with only advising that the possible scenarios could include pursuing the client through legal avenues (Court) and being awarded either a lien against future residences, garnishment of wages and even the continuation of collection calls to pursue the debt relentlessly. It is always important to try to get a full settlement the soonest you can.
If you don’t have the money or your hardship is just too much to overcome it is possible that Chase may still work with you. We have had frequent success getting full release settlement for our clients representing them even when they already have an agent involved. If you have any questions post below. If you need immediate assistance call 888-934-3444 and an Account Assistance Manager will be right with you.