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Chase sent my client a letter offering her $3000 incentive if she would sell as a short sale. Seller's hardship is that her husband died and she had to take a job transfer if she wanted to keep working with her company. Now Chase countered the offer at $20,000 more than the property is worth and says they won't pay the incentive because she doesn't occupy the property. Is anyone else have these kind of rediculous problems with Chase? Any advise is appreciated.
If the $3000 is a HAFA Incentive then Chase is correct in not paying the $3000 as this Incentive is only offered to Borrower's and/or Tenants who occupy the Home.
The $3000 is a Chase "marketing" incentive. Property owners can collect on the $3000 marketing incentive and the HAFA incentive. The owner had to take a job transfer 3 months ago and could not continue to make payments on the modified mortgage payment. I thought that a job transfer and the property being vacant for such a short time did not disqualify the owner. Also, she's had the property on the market since before she had to move.
Last I checked .. they only had to occupy the property within the last 12 months (HAFA)
That was the old guideline.
This is the 'new' -
If the borrower seeks relocation assistance for themselves, a tenant or other non-borrower
occupant in accordance with this Section, the borrower must provide the servicer with evidence
satisfactory to the servicer that the borrower, tenant or other non-borrower occupant was residing
in the property as a principal residence as of the date the borrower executed the SSA or
Alternative RASS. Such evidence may include but is not limited to, property inspections
conducted by or on behalf of the servicer, lease agreements, utility bills, etc. Additionally, the
borrower must ensure that a Dodd-Frank Certification (described in Section 1.7 of Chapter I) and,
if applicable, “Non-Owner Occupant Certification,” in each case executed respectively by the
borrower and, if applicable, each occupant that will receive relocation assistance, is delivered to
the servicer in advance of the transaction settlement date. A servicer may not authorize a closing
that includes HAFA relocation assistance unless and until the servicer has received satisfactory
evidence of occupancy and executed Dodd-Frank Certification(s) and the assistance payment is
accurately reflected on the HUD-1.
Thank you, Kevin. This is a GSE mortgage. Does that make a difference?
Yes. A big one. Disregard everything above. Which GSE?
The $3000 incentive is actually an incentive that is offered as an "in-house" Chase incentive. I've had clients get this incentive, plus the HAFA incentive.
As far as that that goes I guess Chase can pull their Incentive at any time. The GSE's have recently provided guidance (Effective 11-1-12) under HAFA II that the Relocation Assistance now only applies to Owner Occupant's.
Oops. I re-read the directive and it states that "The (previous) guidance is amended to reflect the occupancy date as the date the borrower requested a HAFA short sale or DIL or approval of an executed sales contract, as applicable." So I guess my seller is eligible for reloacation assistance since she submited the application while she occupied the property.
That's a shame. At the time the SS request form was submitted the borrower still occupied the property and would have been eligible for HAFA, if Chase hadn't dragged their feet. Chase took forever to process the application, because they were switching to Equator. By the time they finally got around to reviewing the application (almost 3 months later), the borrower had to taken the job transfer. We were required to resubmit the application through Equator and update the date on the application.