Chase REO Listings contain great deals on residential homes in US. Purchasing a chase owned REO home involves certain procedures that are different from a standard home purchase. A good understanding of all repossessed formalities can help avoid delays and disappointment in your quest to purchase a Chase owned REO property.
About Chase Bank
JP Morgan Chase is the third largest bank in US after Bank of America and Wells Fargo. The acquisition of Washington Mutual (WAMU) and Bear Stearns during the financial crisis contributed further to expand the size of the banking and financial services. It is also one of the largest mortgage servicers providing servicing for more than1 trillion dollars in mortgage loans. The combined inventory of all these entities currently makes up Chase REO.
The Financial Crisis
Before the financial crisis, Chase was not involved in sub-prime lending as aggressively as some its now extinct competitors. On the other hand, Washington Mutual was one of the most aggressive lenders originating huge volumes of sub-prime, Alt-A and Option ARM loans.
The recession due to imploding financial institutions and credit tightening had a big impact on the real estate market throughout the country. The unprecedented rise in house values during the boom years ended with a thud, whose effects are still unravelling. The sudden collapse in the market values of homes caused many homeowners to walk away from their underwater mortgages.
California, Nevada and Florida that were at the forefront during the boom ended up suffering the most. These high market value states had real estate prices decline by almost 50%. A great many of Chase REO listings are made up of properties from these three states.
What are Chase REO Homes?
When a borrower misses a number of regularly scheduled payments, the note holder initiates foreclosure proceedings. Depending on the state’s foreclosure laws, a public auction is conducted. If a property fails to sell for any reason, it becomes the property of the bank or the mortgage note holder. Such foreclosed and repossessed properties are called REO real estate.
Banks owned REO properties are a good place to find undervalued residential real estate deals. Due to its vast size, there are a large number of homes repossessed by Chase REO department all over the country. The Chase REO inventory is mainly made up of residential single family homes.
Chase REO Management Department
Banks generally handle all aspects concerning their reo real estate either through their own internal REO departments or outsource them to reo asset management companies that specialize in handling such operations.
REO properties are considered to be non-performing assets on the accounting books of JP Morgan Chase. A number of expenses relating to the maintenance of REO homes are accrued by the bank that owns the repo property. Property taxes and other costs also add up to the losses already suffered by Chase due to loss of interest income and legal expenses due to foreclosure process.
Due to this, the lender wants to sell off the REO property and recover their losses.
Listings of Chase REO properties
The combined list of all Chase REO home listings can be found on their website. These REO listings are scattered in all areas where the bank had any home lending activities. As the lender is motivated to sell, investors can seize the opportunity to lower the sale price and get a great deal on a new residential home purchase. For more details one may also directly contact the REO asset management department of JPMorgan Chase. These contact details can be found on the Chase REO website. It’s quite difficult to get them on the phone, so faxing or emailing requests are a better option.
A network of previously approved real estate agents handle the Chase REO’s sale process.