Not my client however interesting move on Chase part....
I was speaking to an escrow officer yesterday on a file she just closed with Chase.(NOT my client)
In the contract , Chase agreed to allow $2000 back in credit to the buyer.
There were a couple of items buyer had to pay for up front such as appraisal that were POC and buyers lender required those POC items be detailed on HUD.(ALL part of the closing costs)
When the investor on Chase loan saw the amount of $700 POC of closing to buyer he demanded that the $700 be deducted from the agreed to $2000 towards closing costs and WOULD NOT ALLOW closing until the HUD reflected such. Obviously he was not allowing the buyer to be reimbursed.
When the escrow officer attempted to explain the investor would not listen apparently so instead of the buyer getting the agreed to $2000 was allowed only $1300.
I personally have never run into this......Has anyone else?
Chase Investor stated any and all excess monies comes back to him , period. This is entirely on buyers side.....Has nothing to do with the homeowner getting any monies back etc.
I told the escrow officer I would throw out to various blogs and see what responses I get back.
Any feedback, thoughts on this?
Replies to This Discussion
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Permalink Reply by Terry L. Osburn on
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Kenny, According to the escrow officer she tried explaining such but Chase would not listen. Either she made the corrections and deducted from the buyers originally allowed credit or they would NOT approve the short sale.
The buyer wanted the home and proceeded according to the escrow officer.
I do prepare my buyers NOT to expect much in way of closing costs but if this was approved prior I am at a loss as to why the change in heart . -
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Permalink Reply by Laura Marshall on
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Hi. I have closed a LOT of files with Chase, and this has never come up. My best guess is they figured that since the buyer had the money to pay those other costs, they did not need the full credit.
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Permalink Reply by Kent Dills on
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The investor is obviously ignorant of basic real estate transactional knowledge and specific knowlege related to real estate closing costs, and even basic understanding of the HUD1.
I have had to explain such basics to bank negotiators so that they could - in turn - explain to the investor. That's the world we work in as short sale experts. We get to educate ALL PARTIES involved so that we get the results we're looking for. -
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Permalink Reply by Ben Benita on
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Impressive move on the part of Chase, that took some "cahones" (I am Italian and REALLY should know how to spell that!!!
The escrow agent should have used a better negotiator on her part:
1 - She should have said NO and re-negotiated
or, bluffed and told them:
1 - "OK, we will just cancel this short sale, re-market the property, and look for a new Buyer while you keep paying the Servicer"
or
2 - "OK, we will cancel closing and see if we can get someone else to pay those fees"
or
3 - "We can not move forward without those fees. The Seller does not have enough cash to move, pay for movers, pay for rent at his/her new place. I will simply advise them to stay in the house FOR FREE, until you foreclose, then, suggest they get paid via cash for keys AT LEAST $2000 to move out and NOT damage your property"
There are NUMEROUS ways to handle these things guys, I can not emphasize this enough:
PUSH BACK, SAY NO.....THEY GET PAID TO NEGOTIATE AND GET EVERY DIME THEY CAN FROM YOU, YOUR SELLER, THE BUYER, etc.
Type that out in 100000000 point font, bold and underline it. Next, hang it over your computer or in your office......
NEVER FOGET TO SAY NO!!!!!!!
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