banks won't talk

I have a borrower that is ready to work with me, I send a SS package and played the waiting game with the bank. Chase finally called me back and said “we really don’t care if this goes to foreclosure, because we are insured”. Is there a way to reason with these people?
Thanks in advance,
Merv ???

If the loan is insured there’s a pretty good chance that the homeowner has a FHA mortgage. FHA loans so if the property forecloses the lender and their investors are not affected. Your best bet will be to focus on loans with conventional mortgages.

Thanks JK33, I hate to just spin my wheels.

Howdy Merv:

Spinning wheels is just part of the game. You went thru a lot of work for nothing. What have you learned? Stay away from FHA VA or other insured loans. Actually HUD will assist with the short sale to the best of my knowledge if they net a certain amount but I have no experience in this. Maybe some other members can share their experience. I am sure there is a lot of red tape etc and may not be worth the trouble when better deals may be easier to work?

Just trying to help some


I have a different take on this. The bank is telling you that the borrower has either MIP or PMI to insure their loan. PMI is the mortgage insurance that conventional loans require if the loan amount is more than 80% of the purchase price, and if the loan is to be sold in the conforming loan market (such as Fannie Mae, or Freddie Mac). MIP is the FHA version of PMI. VA does not insure loans, they guarantee them.

When the loan defaults and if the foreclosure sale does not bring enough money to pay off the loan amount plus foreclosure costs, the mortgage insurance company will make up the difference to the limits of the insurance coverage.

If the lender stands to be made whole after foreclosure, there is little incentive to accept a short sale that gives them less.