The last two files I've had with Chase I had to jump  through SERIOUS hoops.  So I really need some advice on this one.  I escalated with Chase last week.  I had this file approved in Sept.  Buyer walked, got it back on market, resent in new buyer info packet,etc., file got DENIED.  I asked why and was told they felt the seller was committing fraud???  I questioned the negotiator and he said the property had a pipe burst and he felt the seller pocketed the money and that's why the property was being denied.  I told the negotiator that the file was PREVIOUSLY APPROVED with the EXACT SAME HARDSHIP letter and was told the previous sale should have been denied. THEY MADE A MISTAKE APPROVING IT.  I also explained the homeowner DID fix the house with the insurance money and we live in New England and this past spring the house flooded due to rain.  The seller has long moved out. I'm being told the homeowner needs to fix the house before they will approve the sale.  I've NEVER heard of such a thing.  I asked them point blank, "Are you telling me there are NO homes on the market throughout the country that have damage that are Freddie owned?"  I also asked if it was a Freddie guideline that homes with water damage are denied and all I get are a lot of 'uuuhhhh' - This makes NO sense.  I need some superstar advice here.  I think my next step is to contact Freddie directly, but does anyone else have ANY thoughts?

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Smitty - Can the seller provide receipts that they used the insurance money to fix the house?  It seems they pulled an insurance search for claims, which I know new insurers can do, for some reason.

I had a similar situation with Chase that just closed this month. The repairs had to be done so I had to pay for it as the owner had no money, It cost me to pay for the radon to be repaired and the drywall repairs out of my pocket.  Also Chase demanded from the owner $700 so to make a long story short there were fees that the bank would not pay and the seller would not pay which amounted to $1698 over and above the money out of my pocket due to repairs. The lawyer and I split it. We from now on are going to have buyers sign that any money that the seller will not pay or the bank will not pay will be paid by the buyer. This type of disclosure form  from the listing agent and the lawyer should be made and given to the buyer at the time of contract.. It seems that fraud is on their mind with every contract. The negotiators are sticking the money to the people in the contract. Here again the lawyer who is negotiating with the bank should have given copies of the insurance papers to them My attorney even goes over their heads to higher supervisors to get problems like this resolved. We repaired the property as if the seller/owner had done it out of charity for her and her 5 children or it would not have closed.

I saw were you mentioned "insurance" in the middle of the entry.  If there was an insurance claim made for water damage, then the seller will need provide receipts showing where he did in fact make the repairs.  If someone as Chase is telling you that they will approve it once they have proof the repairs were made, then they need to be provided with the appropriate documentation.  A bank is not going to take a loss on a property via a short sale while the seller walks away with other money.  Its not reasonable to expect them to.

Wow.  Thanks guys.  I learn something new in this business every day.  I had NO idea that the insurance claim would become such a big issue.  I will ask him for the receipts. 

 

Why do you think it was approved in September then?  It's the SAME hardship letter.

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