Chase investor reduces seller closing costs on the day of closing...

Hi All,

 

Has anyone had Chase reduce the closing costs last minute..We had approval over a month ago and $5k in closing costs were approved by Chase. We were set to close Jan 4th and Chase called to say we had to reduce the closing costs to $1539.29...

Of course try explaining this to a buyer and buyers agent that we had $5k approved and now 4 hrs prior to closing the HUD 1 has to be revised to reflect $1539.29...

It was tough.. I tried to escalate this in such short time but our closing coordinator stated that this would be a waste of time as it was an investor decision..

In the end to cut a long story short the buyer had to come up with an additional $2k and both agent chipped in $750.00 each.

We got this file closed which of course is the ultimate thing to do but I had a sour taste in mouth as our prior HUD 1 had full approval with us hitting the required net..

 

Thanks,

Julian

 

Views: 500

Replies to This Discussion

Per above, simplest advice, send your prelim. HUD in as soon as possible for their approval.

Servicers do that stuff last minute so they can get more money for the Investor (remember, that is the SOLE purpose of the Servicer during a short sale).

Only way to counter it is halt the closing, and escalate or go directly to the Investor on the loan.

If you do this, be CERTAIN to send out "why" via emails to EVERYONE at Chase, the Investor, and ANYONE involved in the transaction.

NOT telling anyone here to lie, BUT:

FACT - Banks have NO fiduciary responsibility to you, me, attorneys, ANYONE BUT THE HOMEOWNER...never ever ever forget this (and now you also know why they will NOT allow YOU to record conversations with them, but, they can record conversations with you)

Nothing stopping you from sending in your HUD the second it is ready with an "anticipated closing date" so they can not play those last minute games....cut commissions last minute, cut closing cost last minute, etc.

Keep fighting guys......here to help you help more homeonwers in 2013!!!

[email protected]

sorry, last thing....when escalating over last minute changes, be CERTAIn to usee words like:

"Fraud" or "Bait and switch"

to get the most attention from the higher ups.

Also, filing complaints with the OCC and OTS work wonders as well!!!!

Keep fighting guys......here to help you help more homeonwers in 2013!!!

[email protected]

My last 5 Chase written short sale apprvoals have been pretty clear.

There are certain lender fees will NOT be allowed (i.e. origination and many others fees) to be applied toward however many total dollars they approved for buyer paid closing costs.

I make sure that both the buyers and the buyers lenders knows this well in advance of Final HUD1 preparation. i.e on the day I send them a copy of that approval. I urge them to read it word for word and ask questions if they don't understand it.

This way there are no surprises at the closing if the loan officer and the lenders closing department screws it up!

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************