Spoke to Heather Held 4/27/11. I asked her:

1. Why was there $1,020 on Line 403 (seller concession) of the new approval letter?

I went on to explain that, in previous preliminary HUDs that we had sent her,  the line in question, Line 403, was used for the amount of the seller/borrower's cash contribution at closing.  In this case, Heather had previously agreed to $2,000 (split 50/50 by the 1st & 2nd) contributed by the seller/borrower at closing. So...I asked her if she meant that instead of $2,000 she now wanted $1,020? Or did that mean $1,020 to the 1st and some other amount to the 2nd?

Heather said they don't use the expression 'seller concession'  to describe the seller/borrower's cash contribution at closing.  She said it referred to the seller paying for buyer's closing costs.  Heather then claimed that we had asked for those concessions.  First, we did not. I have the preliminary HUDs to prove it. Second, that makes no sense.  I reminded her this is a cash sale so Closing Costs would be minimal and, therefore, we had no reason to ask for seller concessions (pay for closing costs).  

2.  Why was the $500 fee to HOA's Attorney that she had previously approved missing?

She said this investor doesn't pay attorney fees. What?  Either they do and she is lying, or they don't and she screwed up before by allowing it. 

What's more, when we had discussed her previous approval letter, I questioned the HOA getting only $4,032 of the almost $9,000 owed.  Heather pointed out that the $500 approved for attorney fees meant the HOA's attorney, effectively bringing the total to $4,532 for the association.

Did she forget that or was it a lie?

3. Why was there an  approval letter from the 1st but no approval letter from the 2nd (both Chase)?

As for the approval letter from the 2nd, waiving the deficiency, she said the 2nd absolutely would not waive the deficiency without a substantial cash contribution (she cited the amount she thought the seller had in his bank account). 

I reminded her that in March, she said that if the seller would contribute $1,000 to the 1st and $1,000 to the 2nd, Chase would issue approval letters waiving the deficiency for both loans. 

Now, all of a sudden, Heather denied doing this and wanted to know who I spoke to at Chase 2nd.  I reminded her that  she told us from the beginning we were to go through her for both loans (the same thing her predecessor, Dale Klingbeil, told us).  She tried to claim there was a note in the file saying I had spoken  to someone named Wendy at Chase 2nd. I absolutely did not and said so.

The only time I ever heard from someone at Chase 2nd was at the 11th hour right before we were supposed to close in March.  He asked for a huge cash contribution or no deficiency waiver. I told him that the seller refused and he hung up.  I left a message for Heather explaining the call and that the short sale was dead because the seller was only willing to bring $1,000 for the first loan and would not close without deficiency waiver from  both. She called me back and agreed to accept the deal for $2,000 total from the seller in exchange for waiver of deficiency on both.

At this point, Heather's demeanor turned nasty and she hung up the phone.

I believe Heather was either confusing our file with another, had forgotten what she had promised, or she promised things that could not be delivered, hoping we would cave in or have forgotten what she said before.

I faxed a response with a detailed outline of questions regarding the approval letter (see attached).

When I talked to Heather again, she told me she had spoken to the seller and the seller had agreed to bring $2,461 to the closing table in exchange for debt forgiveness on both loans and that the 1st Chase loan would give the 2nd Chase loan $1,539, for a total of $4,000 to the 2nd loan.  She said she would issue a new approval letter.  I got one, but the phantom $1,020  was still on the approval letter and, WORSE, Heather was requiring the seller to pay his $2,461 "under the table".  Chase Bank wants the Title company and the Real Estate Brokerage to violate RESPA laws that require full disclosure at closing.

The approval letter must match the final HUD.

Finally, on May 5th, Heather called me to say she was sending the revised approval letter. I asked about the issues she had never addressed (unnecessary $1,020 seller concession, missing $500 to condo association attorney, different closing dates for 1st and 2nd, seller's $2,461 contribution missing from the 1st's approval letter).

Also seller contribution/cash at closing not on the 1st approval, but is on the 2nd. She said this had to be paid outside of closing.

I explained that the title company would not agree to that, because it would be a RESPA violation and the underwriter would not allow it.  The approval letter MUST match the HUD.  Heather claimed she does this all the time. I asked her to explain clearly how she was going to structure this so that RESPA would not be violated, even though they wanted funds to be paid outside of closing.  She said something about getting the $ from the buyer or from realtor commissions. Wait. What? A total renegotiation of the terms?

Prior to this, Heather's tone had been curt.  When I asked her how she was going to get $2,461 out of my measly $2,040 commission, her tone changed to snappy and unprofessional.  Heather said she would call Fidelity National Title and tell Cindy Archer how to do the HUD.  I offered to give her Cindy's contact information, but Heather said she had it.  She has never contacted the title company.

We are supposed to close 5/20/11 (I think, still have 2 different closing dates on each letter).

Can someone please help me get this closed?