Chase offering cash for Deed in Lieu...anyone hear of this

**norcalstuck** · 05-07-2012, 10:53 AM

I started a thread back in September 2011 strategic default first and second with Chase Calif

We stopped paying Sept 1 2011, no payments since, played HAMPStER Wheel to stay in house, did the loan mod game, etc etc Just last week after denied loan mod, Chase let us move to SS. We agreed to do it so we could forestall the NOD. THEN Chase sends us via UPS Express an offer to do a DIL and they will pay us $34,000 in cash to do it!! That was Friday May 4th, Monday May 7 we both get emails from Chase with same offer!! We have talked with Chase twice now, they say that we must cancel the SS process, then move to DIL. They say that this takes care of the first, which was WAMU, now Chase...and the HELOC with Chase and all back late payments, fees, escrow account etc. We will owe nothing and they will give us $34,000.
I DONT TRUST CHASE...but would like to know if anyone else has heard of this type of offer from Chase or if you have received one. Thanks

**TomEason** · 05-07-2012, 10:59 AM

Hi norcalstruck

Thanks for your post. Yes I've heard of these large incentive payments, so believe it is valid.

If you have uncertainties, you might consider having a lawyer review the agreement. Assuming it makes financial sense for you, I'd count my lucky stars and accept the deal.

Good luck!

**norcalstuck** · 05-07-2012, 11:08 AM

Tom, thanks lots for fast response, and yes we have a very good knowledgeable lawyer will have him look today. And no kidding, we would totally count our lucky stars!! Just before missing first payment last year, we took our last $25K from HELOC and socked it away. Then we have stashed all we are saving from not paying since last Sept...add the proferred new $34K and we are lookin' good!

And I just stopped on my Chase MC, and already had one offer to settle from them and we are only 7 days late! So woo hooo...will post back when we confirm all of this to be real. Thanks again

**Cat Damiano** · 05-07-2012, 11:11 AM

I have heard of it and Chase has been doing this for short sales already on loans that they own but after a certain timeframe in the short sale process, they may be offering it on the deed in lieu as well such as in your case. Which by the way is a really great deal.

Bank of America, Wells and Chase pay homeowners to avoid foreclosures - San Francisco Business Times

**walkin** · 05-07-2012, 11:18 AM

WOW! Must be nice! Chase negotiator called me last Thursday to tell me the short sale was declined by Chase, because the 2nd (HELOC) didn't want to play ball. She told me she could get me over to their DIL department if I wanted to try that route. Told her I would read up on it and see. I thought DIL wouldn't be an option for me, since there is a 2nd bank holding an empty bag for $69k or so....

Anyway, eff 'em both...I'm not paying anymore on my $26k worth of cc debt that I happen to have with both of those banks.

**norcalstuck** · 05-07-2012, 11:19 AM

Thanks Cat...just talked with our law office, they say they have not had any of their clients actually ever receive the real cash from Chase for the SS. We are in East Bay Area in San Fran bay area...the amount is a bit more than what I have seen others on LS offered...and the article you sent is enlightening for sure and I will send on to my lawyer. fingers and toes are crossed

**TomEason** · 05-07-2012, 11:56 AM

walkin

Thanks for your post.

IMHO, your thought that DIL isn't an option for you is quite correct. The Chase negotiator who told you that is clueless (so what else is new, LOL). DILs are extremely difficult. and are impossible if there are subordinate liens recorded against the property.

**Swiller** · 05-08-2012, 09:28 AM

A HELOC that is "charged off" is not a subordinate lien as far as I know, but I'm not a scu, er attorney. DIL with cash is what I've been after. I would like it done before the end of 2012. I made it thorugh the 1st HAMP, and defaulted again so applied for the 2nd HAMP or whatever they are calling it. If they modify and it is reasonable (insert principal reduction, OR a lifetime 2% loan), I'll keep the home, if not, pile on the foreclosure proceedings and get my a$$ out by December!

**TomEason** · 05-08-2012, 09:46 AM

Swiller

Thanks for your post.

I beg to differ with this statement

A HELOC that is "charged off" is not a subordinate lien

You're just wrong on this. A "charge-off" doesn't make a debt disappear; it's an accounting term. The lien still remains of record against the property. Therefore a DIL on a property having a junior encumbrance (lien) will be nigh on impossible to effectuate.

**Swiller** · 05-08-2012, 10:08 AM

How can you write off a debt and yet still collect on it? How can you write off a debt and still pursue collection? On my credit report LOL, you can clearly see the month this loan was "charged off". It's a CREDIT line, not a 2nd mortgage. My $20,000 credit card was charge off as well, which in CA means they have 4 years to get a judgment or POOF, bye bye, that debt goes away.

We shall see what happens in the coming months as I am living it. If DIL isn't possible, oh well, let me live for many more months for FREE. If the banksters want to get nasty, good luck repairing what I leave. I'm one of the VERY few who really do not give two sh1ts about credit anymore....and I intend to make it the rest of my life. Like my grandparents, I will buy all in cash, or not at all.

They bit the wrong person on this fraud, as I'm actively working on becoming "unknown" to the system, and hopefully, in four years when I retire, I'll be almost 100% cash, and that will go for my wages as well. F em all, welcome to the new anarchy for surviving in the new world order. Their laws (the U.S.) don't mean very much to me anymore, I do as I please now, as long as it hurts no one else.

**TomEason** · 05-08-2012, 10:20 AM

Swiller

Thanks for your post.

I find your statement

It's a CREDIT line, not a 2nd mortgage

somewhat questionable to say the least. If you question that lien (and you might not care), you might ask a title company to run an abstract of title on your property. That will show what liens are of record.

Your credit file is not conclusive. Again, a debt that is written off does not disappear. That debt is still owing and the creditor has the right to conduct collection activity.

Good luck to you.

**Cat Damiano** · 05-08-2012, 10:31 AM

norcalstuck,

I do hope that it works out for you. Please keep us posted on how it goes.

**Swiller** · 05-08-2012, 10:52 AM

Gosh darnit Tom, you are correct. I went to OC website and searched Liens...sure enuff, there it is, big and bad as day. Oh well, another creditor waiting for payment...good luck with that. If the loan mod looks good I'll just not pay on it ever. If not, it will go away like all life's other problems. It's freeing when you actually do not give two sh1ts, but it is fun to play "the game".

**TomEason** · 05-08-2012, 11:03 AM

Hi Swiller

Thanks for the update. I find your attitude quite refreshing.

Good luck and continue having fun!

PS You might want to check out the HAMPster Wheel Game at this thread. I think you'll enjoy playing.

http://www.loansafe.org/forum/chase-...l-game-31.html

**norcalstuck** · 05-12-2012, 09:23 AM

Just a short update. Chase refuses to put in writing a commitment that IF we drop out of SS process, they will give the 34k for DIL. Chase de,ands we cancel SS first then they will decide on follow thru with DIL. And of course they can also then deny us going back to SS if they withdraw the DIL offer which puts us back on foreclosure track faster. And they won't put in writing that our HELOC does not count as a lien , they say it verbally on phone but will not put in writing. Bottom line, and after consulting with our attorney, etc. we are staying on the Wheel using SS to stay as long as we can. You just can't trust the bankers, huh?!

**TomEason** · 05-12-2012, 10:07 AM

norcalstruck

Thanks for posting your experience with Chase. I agree with you; unfortunately, it's difficult, if not impossible, to have trust in what the banksters say. Banks avoid making commitments in writing, I suppose because of their concern about mistakes that will be used against them.

See you on the Wheel.

**Annie Mac** · 06-07-2012, 04:23 PM

Glad to see you are still hanging in there Norcalstruck. I confirm your statements about Chase wanting to do everything on the phone. I now communicate only in writing, and request them to also. No more loan mod applications, no more phone calls...mail and fax only. I received a written statement in May stating they are still looking into my query of my second QWR. A week later, received a letter,"we received your request for a Short Sale..." which I never requested. I still maintain there is no record of Chase paying anything to Wamu, nor the closure of the Sale. Four years of this, and still holding down the fort. Stay strong, don't buckle.

**norcalstuck** · 06-07-2012, 06:04 PM

An update...we took the Chase offer to pay us to do a DIL to a local Chase Home support center. They were bug-eyed at the offer...got on the phone...got us an extension...and we are now trying to go for the DIL. The huge unknown is whether or not their 'analysts' will approve us officially for this offer...we hope for YES! And if they do...then we go into resubmitting the same financial information we already submitted for the SS...and then they say 'yay or nay' and then we get another negotiator and so forth...so for anyone who gets this DIL offer...don't think it is totally bogus...

BUT..be cautious as we still are...but what the heck...we have nothing to lose...we have already lost....roll the dice and keep your financial information close...IMHO

**norcalstuck** · 06-26-2012, 12:30 PM

Hi all, just a little update. We learned from someone knocking on our front door offering to help us with our foreclosure that we have had the official NOD filed at the county clerk office. It was filed June 8, we did not receive any written notification from California Reconveyance or Chase until June 25! Go figure! In the meantime, June 15, we faxed in a letter requesting that the SS be stopped and that they move us to the DIL as they offered. Of course, they did the NOD anyway. So now we have called and called and finally visited the local Chase home mod center again. They gave us the name of someone assigned to our case, we never knew that. And of course again, we cannot reach this person. Never answers and no voicemail. And that 90 day clock keeps on ticking.

So we finally got someone yesterday, a supervisor, who informed us that 'oh no, you dont qualify for the DIL because you have a second and that is a lien and you have to clear tha to get this offer'. We advised him we had repeatedly been told that the DIL offer would eliminate both Chase 1rst and 2nd. He said 'oh no, we probably only service the loans, you dont know who owns them'. I said yes I did, because I had done my research and knew that Chase still owns both loans. He was a jackass frankly

So, we called again this morning, got a knowledgeable woman who helped move our faxed letter asking for end SS and move to DIL..she got it moved to the proper department, told us wait 6 days and if no one has contacted us, call her back. She said as long as both loans were Chase, we qualified. So we are back in the game, but still with the NOD clock ticking. She said that our negotiator who should call next week is the one person who can notify Calif Recon to suspend the foreclosure until the DIL is decided. You have to stay on top of these people, they are relentless in their stupidity. Meanwhile, we are still searching for a rental, but we now know that by early Oct, we will be out, no matter what. whew! A whole year of mortgage payments, second payments property tax and unsureance saved...score one for us!

**Annie Mac** · 07-10-2012, 12:53 PM

Norcalstuck,
Once again, we are having very parallel situations develop with Chase. You and I are hot potatoes to Chase, and they are going to do whatever they can to rid themselves of our kind...Wamu/Chase with murky backgrounds. After a very long time, I also was served a NOD and sale date right under the wire before the new laws go into effect tomorrow. The beneficiary is listed as Washington Mutual Bank, FA which no longer exists. Who is listed as the beneficiary of your NOD? My new assignment of trustee was made by Chase. There were letters of contradictory nature coming from several different departments at Chase. I would not trust anything at all you are told; they are definitely working in four directions at once. However, you did not have new laws going into effect in California, so it is possible that for another reason, it is time for them to clean out the chicken coop of our kind of loans. Remember though, there is a fox in here with us.

**TomEason** · 07-10-2012, 01:13 PM

Hi Annie Mac

I'm curious what you mean by this

sale date right under the wire before the new laws go into effect tomorrow.

Can you elucidate? Thanks!

**norcalstuck** · 07-10-2012, 01:59 PM

Hi Annie Mac, I echo Tom...can you elucidate upon your comment which he quoted? I am confused. What I know for sure here in CA is that Chase is like all the others, they dual track us meaning they proceed with the foreclosure paperwork even at the same time they are working through loan mod apps, DIL, SS, etc. They never stop working the NOD process bottom line. So now all that we know for sure is that no matter what happens to us, we are out of here by early October. For us, no problem. We are ready to move on with our savings!

**Ready2Run** · 07-10-2012, 02:22 PM

Originally Posted by TomEason

Hi Annie Mac

I'm curious what you mean by this

Can you elucidate? Thanks!

Maybe they were talking about this: California Passes "Homeowner Bill of Rights" Legislation

**TomEason** · 07-10-2012, 03:51 PM

Originally Posted by Ready2Run

Maybe they were talking about this: California Passes "Homeowner Bill of Rights" Legislation

Hi Ready2Run

Perhaps, but the new laws don't take effect until January 2013. And, although he's expected to, Gov Moonbeam hasn't even yet signed them; so they're not laws yet.

**Annie Mac** · 07-10-2012, 05:24 PM

Anonymity is a thing of the past. I question if my support for the new legislation in my state resulted in Chase employees reading loansafe and deciding, oh, that Annie Mac, let's go for that one! The Oregon legislature passed some very strong legislation to help homeowners, and the bill goes into effect tomorrow. For a non-judicial state, the new HB 1552 requires mandatory mediation and stricter enforcements which make foreclosing more costly and involved. The timing is just ironic. However, the QWRs went unresponded to, the Rest Report resulted in no assignment to a Relationship Manager at all with that application. The quadruple tracking continued. Now it is clear that the chain of title is like Swiss cheese, so there is a lot of work to be done. No deals to cut, no pennies to pay. I just don't believe that either Chase or Washington Mutual have a right to my home. So, that explains the big event tomorrow.

**TomEason** · 07-10-2012, 07:18 PM

Hi Annie Mac

Thanks for your post. When I made my post I had failed to notice you're in OR; I'd inadvertently assumed you're in CA. Good luck!

**kjjalsweet** · 08-29-2012, 12:56 AM

We received an offer on our principal residence, but only with clear title (Ours has a 2nd HELOC held by another company which has changed hands at least 3 times!). The offer was around 3,000 though. Boggled that banks would pay the amount you mentioned, but who knows....crazy world we're living in.... Best wishes....

**norcalstuck** · 01-27-2013, 12:08 PM

Hey All, I see some of my buddies I learned from like Margaret C are still around, not totally done with their foreclosures etc. And, here I am, back again. Sigh. So the update:

June-July 2012 we worked to accept Chase offer to pay us $34K if we would do a DIL instead of SS. No brainer, of course we will take the money
Aug 2012 we find a rental, nice, very nice in fact, and all updated...perfect...even allowed our new adopted rescue cat...even more purrfect
End of Sept, we do as Chase told us in the "terms and conditions" for the DIL, and we have letters from Chase date Sept 2012, one with the first mortgage and one for the second HELOC. Can't do a DIL unless both are on board, no problem, Chase took care of getting the HELOC on board as it is also with Chase (we are former WAMU first mortgage BTW)
Early Oct Chase moves us from CA to TX for processing; this is the second time they "reorganized" and moved us (not to be the last)
Now TX says the HELOC is not part of the DIL...so we have to get more agreements, fine, that gets done.
Late Oct; Chase has not trained our CSR in how to execute this "new" DIL...with the incentive of cash pay out for leaving house empty, broom swept clean (did that end of Sept, told Chase it was theirs on Oct 3; learned they had already broken into our home and changed the locks, we still own the home (weird,right? and no one thinks that is weird or even illegal...even more weird)
So we stop all utilities, water off etc. Now we are waiting...learn Chase has also not put into place proper processes to actually pay out this cash incentive...so they are working on that at same time they are moving our paperwork through their legal and Calif. Recon Trust
late Oct...Chase informs us our title is NOT CLEAR on this property...not since we bought it, not even WHEN we bought it...2003. WTH!!???
I do all the leg work, get back to my original realtor who sends me to our original North Amer Title Escrow person (no longer with NAT)..more searching; I am also in touch with the current North Amer Title person and the Calif Recon Trust person and the Chase person...none of them seem to be able to speak with each other except if Iinitiate the calls...even more weirder (is that a word?)
I uncover what the real problem is, it was in how ONE SINGLE NUMBER WAS FILED in the reconveyance of a loan the former owners had, and they took care of it in 2003, Jan and we bought from them in Sept 2003. North Amer Title, to whom we paid Title Insurance, said we had clear title our purchase went through; no problem in 2003
Fast forward, 2012...there is a 'cloud' on our title; North Amer Title doesn't want to talk with us about the Title Insurance we bought and paid for at time of purchase...Chase has now m oved our files from TX back to CA last week, Jan 2013, on the 17th or so
Sat Jan 26 I get a call from the HELOC threatening harm to us if we don't pay them. WTH???!! THey say they are not agreeing with the DIL
TODAY...we are so frustrated.
MY QUESTION:
- Has anyone ever made a claim on the Title Insurance you paid for when you bought your home once you found you did not really have clear title??? What good is this title insurance if we cannot collect something because lo and behold, we never had clear title?
And, beware a bank offering cash incentive to vacate your home for a DIL...we still believe they used this to get us out of the house to make foreclosure easier, faster, and to make sure we did not try to postpone vacating the house longer. We are just waiting for the letter telling us there is a sale date on our hom
What good is the new CALIF Homeowner's Bill of Rights when the courts still won't touch the banks? and What good it the National major 5 banks settlement if no one holds them to the agreements, ie you cannot double track....

we don't know that they are doing this, but we don't now nor ever will trust the banks again, ever

Okey dokey, that's it for me.

Hope someone out there in Loansafe Land is still reading. Any answers to the question about Title Insurance would be appreciated. We are now past the Debt Forgiveness Act timeline, but if this title crap had been resolved within 90 days, we would have made it under that deadline. So now, are we open to the IRS showing up to collect both mortgages as "income" paid us? What a mess. Thanks lots for anyone who actually reads this.

I know I have been gone a long time. We have been weekly working this process since my last post. But yesterday's phone call telling me AGAIN for the third time that the CHase HELOC doesn't fall under the DIL deal, that did it for me. I screamed at that woman, I was not nice...I am feeling badly about losing my temper. Done, thanks, Norcalstuck

**norcalstuck** · 01-27-2013, 12:09 PM

Hi Ready2run please read my new entry if you are still around, thanks

**TomEason** · 01-27-2013, 02:05 PM

Originally Posted by norcalstuck

Hey All, I see some of my buddies I learned from like Margaret C are still around, not totally done with their foreclosures etc. And, here I am, back again. Sigh. So the update:

June-July 2012 we worked to accept Chase offer to pay us $34K if we would do a DIL instead of SS. No brainer, of course we will take the money
Aug 2012 we find a rental, nice, very nice in fact, and all updated...perfect...even allowed our new adopted rescue cat...even more purrfect
End of Sept, we do as Chase told us in the "terms and conditions" for the DIL, and we have letters from Chase date Sept 2012, one with the first mortgage and one for the second HELOC. Can't do a DIL unless both are on board, no problem, Chase took care of getting the HELOC on board as it is also with Chase (we are former WAMU first mortgage BTW)
Early Oct Chase moves us from CA to TX for processing; this is the second time they "reorganized" and moved us (not to be the last)
Now TX says the HELOC is not part of the DIL...so we have to get more agreements, fine, that gets done.
Late Oct; Chase has not trained our CSR in how to execute this "new" DIL...with the incentive of cash pay out for leaving house empty, broom swept clean (did that end of Sept, told Chase it was theirs on Oct 3; learned they had already broken into our home and changed the locks, we still own the home (weird,right? and no one thinks that is weird or even illegal...even more weird)
So we stop all utilities, water off etc. Now we are waiting...learn Chase has also not put into place proper processes to actually pay out this cash incentive...so they are working on that at same time they are moving our paperwork through their legal and Calif. Recon Trust
late Oct...Chase informs us our title is NOT CLEAR on this property...not since we bought it, not even WHEN we bought it...2003. WTH!!???
I do all the leg work, get back to my original realtor who sends me to our original North Amer Title Escrow person (no longer with NAT)..more searching; I am also in touch with the current North Amer Title person and the Calif Recon Trust person and the Chase person...none of them seem to be able to speak with each other except if Iinitiate the calls...even more weirder (is that a word?)
I uncover what the real problem is, it was in how ONE SINGLE NUMBER WAS FILED in the reconveyance of a loan the former owners had, and they took care of it in 2003, Jan and we bought from them in Sept 2003. North Amer Title, to whom we paid Title Insurance, said we had clear title our purchase went through; no problem in 2003
Fast forward, 2012...there is a 'cloud' on our title; North Amer Title doesn't want to talk with us about the Title Insurance we bought and paid for at time of purchase...Chase has now m oved our files from TX back to CA last week, Jan 2013, on the 17th or so
Sat Jan 26 I get a call from the HELOC threatening harm to us if we don't pay them. WTH???!! THey say they are not agreeing with the DIL
TODAY...we are so frustrated.
MY QUESTION:
- Has anyone ever made a claim on the Title Insurance you paid for when you bought your home once you found you did not really have clear title??? What good is this title insurance if we cannot collect something because lo and behold, we never had clear title?
And, beware a bank offering cash incentive to vacate your home for a DIL...we still believe they used this to get us out of the house to make foreclosure easier, faster, and to make sure we did not try to postpone vacating the house longer. We are just waiting for the letter telling us there is a sale date on our hom
What good is the new CALIF Homeowner's Bill of Rights when the courts still won't touch the banks? and What good it the National major 5 banks settlement if no one holds them to the agreements, ie you cannot double track....

we don't know that they are doing this, but we don't now nor ever will trust the banks again, ever

Okey dokey, that's it for me. Hope someone out there in Loansafe Land is still reading. Any answers to the question about Title Insurance would be appreciated. We are now past the Debt Forgiveness Act timeline, but if this title crap had been resolved within 90 days, we would have made it under that deadline. So now, are we open to the IRS showing up to collect both mortgages as "income" paid us? What a mess. Thanks lots for anyone who actually reads this. I know I have been gone a long time. We have been weekly working this process since my last post. But yesterday's phone call telling me AGAIN for the third time that the CHase HELOC doesn't fall under the DIL deal, that did it for me. I screamed at that woman, I was not nice...I am feeling badly about losing my temper. Done, thanks, Norcalstuck

Thanks for your post. If it were me, I'd find my copy of the owner's title insurance policy (not the lender's policy). Review the policy; if it appears probable that you should be covered for a clouded title, send them a claim via letter. I recommend you not rely on the RE agent or escrow officer. Although the title insurance company and the title/escrow company are, or may have been, affiliated, they are separate entities. If the title insurance company refuses to honor your claim, I would recommend retaining a lawyer; most lawyers are pretty good in dealing with insurance companies. FYI in my experience, should you prevail, attorney fees will be paid by the insurance carrier. Good luck.

**norcalstuck** · 01-27-2013, 03:22 PM

hey Tom, just back from running errands. You are THE MAN! I was hoping you would see my post. We do have a good lawyer. Of course, since moving, it appears my husband tossed everything related to the house; I know, I know...not a good thing...anyway, I doubt we have a copy of our owner's title insurance policy. So another dumb question, would not the issuer of said policy have a copy? just asking...I will start my search.

**TomEason** · 01-27-2013, 03:31 PM

Originally Posted by norcalstuck

hey Tom, just back from running errands. You are THE MAN! I was hoping you would see my post. We do have a good lawyer. Of course, since moving, it appears my husband tossed everything related to the house; I know, I know...not a good thing...anyway, I doubt we have a copy of our owner's title insurance policy. So another dumb question, would not the issuer of said policy have a copy? just asking...I will start my search.

Thanks for your post - I'm glad you're getting value from my posts. Yes, the issuer should definitely have a copy. You might also check with the escrow officer or title company that handled your sale. Title companies keep a record of all their files. Good luck!

**Ready2Run** · 01-28-2013, 11:04 AM

I just read your post. Don't really know what to say about the title stuff but I'd go with Tom's advice. Also, since this is insurance, would this be something the state insurance commissioner could help with or should know about? Just a thought.

As far as you concerns with taxes, as you wrote here:

Originally Posted by norcalstuck

We are now past the Debt Forgiveness Act timeline, but if this title crap had been resolved within 90 days, we would have made it under that deadline. So now, are we open to the IRS showing up to collect both mortgages as "income" paid us? What a mess.

I just want to make sure you know the MFDRA got extended until the end of 2013. Therefore at least your tax worries shouldn't be an issue.

All the best!

**norcalstuck** · 01-28-2013, 11:32 AM

Hey Ready2run, no, had not heard that! Thanks ever so much! whew!

**norcalstuck** · 02-13-2013, 10:59 AM

Update: The cloud on the title has been managed somehow. We have now signed, notarized and returned the DIL docs to Calif Reconveyance Company. Now Chase signs theirs and sends them to Cal Recon and Cal Recon files with the courts. Maybe another 4 weeks to go. Will come back with a final report if/when we receive our incentive check for $34,000. Then we will believe it is all real.

**Cat Damiano** · 02-13-2013, 11:46 PM

Originally Posted by norcalstuck

Update: The cloud on the title has been managed somehow. We have now signed, notarized and returned the DIL docs to Calif Reconveyance Company. Now Chase signs theirs and sends them to Cal Recon and Cal Recon files with the courts. Maybe another 4 weeks to go. Will come back with a final report if/when we receive our incentive check for $34,000. Then we will believe it is all real.

Congratulations on getting this far! Please do keep us posted on the incentive payment.

**norcalstuck** · 03-11-2013, 10:38 AM

I wanted to come back and let everyone know...the offer Chase Bank made to us..."Do a DIL and we will give you $34,000 in cash" was real. We now have the check cashed, deposited and cleared. All we need to have happen now is for the county to file the Deed of Trust in Chase's name.

We walked on the house SEptember 2011. We had a first, non-recourse with Chase/WAMU and a HELOC with Chase. Both loans are forgiven; no IRS issues.

We also walked on a Chase Master Card with a $32,000 balance on it. We used the money we saved from not paying our Chase Mortgage and HELOC payments to settle the credit card for $9,500. So Chase money paid the settlement of their own Chase MC. We did get a 1099 for the forgiven portion of the credit card, but we have our Chase money to cover the taxes we have to pay on that...again, Chase paying for Chase...gotta love that!

Before we walked in September 2011, we withdrew the last $25, 000 from our HELOC...and that is still in a saving account...no IRS issues with it; now that HELOC is completely forgiven.

So, we saved enough money in not paying either the first mortgage or HELOC for 12 months to pay off the CHase MC; had money for leasing a very nice town home and money to move, still have money in the savings...and have been to our timeshare in Cabo; a week in Maui; and still are saving because our rent is less than our mortgage AND we are not paying property taxes (which were $7,000 annually nor property insurance which was $3,000 annually).

Our home will likely sell now for about what we paid for it, so Chase will get both of their loans paid in full AND they will make enough to cover all our m issed payments plus any penalties they accrued AND they will likely still have some profit. We could not have come away with a dime!!

Now, we have come away with almost $60,000 AND add to that the approximately $36,000 we saved living in the house for a year rent free...not bad for a strategic default strategy and for a successful Hampster Wheel game plan. We could not have done any of this without the help and support and information I acquired from this site and all its members.

Loansafe.org ROCKS!!! My last post here will be when the Deed is officially transferred to Chase and recorded. That is the last we have to see. Thanks to all, Norcalstuck...NO MORE!!!

**Cat Damiano** · 03-11-2013, 10:44 AM

Thank you for the update. That is really great news about the incentive for the DIL. You played the game well and came away a winner! Congratulations!

**Ready2Run** · 03-11-2013, 12:15 PM

Originally Posted by norcalstuck

Before we walked in September 2011, we withdrew the last $25, 000 from our HELOC...and that is still in a saving account...no IRS issues with it; now that HELOC is completely forgiven.

Can you explain why you don't have IRS issues on a HELOC which you withdraw $25K from? I *think* I understand the tax laws but don't understand this since the $25K surely isn't "purchase money".

**norcalstuck** · 03-28-2013, 10:30 AM

I have no idea, but so far Chase has not talked about sending a 1099 for anything other than the 34K incentive to do the DIL. We never paid any income tax when we used any of the HELOC money for paying off our cars etc. So, I withdrew the 25K BEFORE we walked on the mortgages. If we ever get nailed for it, so be it, it is all still sitting in a savings account. The DIL covered both the first and HELOC so both loans are "paid in full" or "forgiven" whatever the language is. That's all I know. And I just looked and we are now COMPLETELY DONE. THe deed was recorded and filed at the county clerk office. The home is no longer ours. We are no longer NorCalStuck