Another one bites the dust. Chase now joining the ranks of other large servicers has put a stop to the amount of money allowed to go to second mortgages. Where once they were one of the last that were reasonable, reasonable being based off of the common understanding of the dance that takes place between Sr. and Jr. Lien holders, they have no succumb to the rule of 6% or 6,000.
Well in most cases most agents/attorney’s/escrows and anyone else who deals with short sales would tell you that this is definitely going to through a damper on many deals. While sounding much like HAMP but with none of the benefits Chase is following in the foot steps of banks such as Bank of America who already initiated this rule sometime ago.
The only thing left to see is what is going to happen with Chase’s own requests for pay offs on their second mortgage’s that exceed what is being given by first mortgage lenders. Have you experienced any deals suffering from these new rules? Sign up or Log in and put your two cents in because chances are you are not the only one being left high and dry.