Replies to This Discussion

Permalink Reply by Jeff Payne on December 10, 2010 at 9:04am

Ray, sometimes when they get denied that fast, the lender may have looked at the sellers credit report first and if it looks good, they have been known to deny them right away.

If you ask to have it escalated to FNMA, they are required to do it, if they do not, you need to contact FNMA yourself

Permalink Reply by Ray Snook on December 10, 2010 at 9:11am

Thanks Jeff

The seller is in a wheelchair with COPD and 24 hour oxygen, on Social Security benefit only, her credit is trashed.

I will ask for escalation, I called FNME myself and am getting authorized by seller to speak with them. I heard that if a sale date is less than 5 days away they wont stop it anyway.

Jeff Payne said:

Ray, sometimes when they get denied that fast, the lender may have looked at the sellers credit report first and if it looks good, they have been known to deny them right away.

If you ask to have it escalated to FNMA, they are required to do it, if they do not, you need to contact FNMA yourself

Permalink Reply by Dianne Slutsky on December 10, 2010 at 9:19am

Both you and the seller need to call FNMA again and tell them that you want to file a formal complaint.  You then need to inform Chase that your seller has filed the formal complaint with FNMA.  When you speak with Chase, once again ask them who has determined value since you were never contacted regarding an appraisal or bpo.  After you ask the question, tell them that you will be recording the conversation for your seller to hear.  Most times when you tell them that you are recording a conversation, you are moved immediately to a supervisor or an escalation department.  Good luck!

Permalink Reply by Ray Snook on December 10, 2010 at 9:28am

Thanks Dianne - that is great advice, I will follow up with it now!

Dianne Slutsky said:

Both you and the seller need to call FNMA again and tell them that you want to file a formal complaint.  You then need to inform Chase that your seller has filed the formal complaint with FNMA.  When you speak with Chase, once again ask them who has determined value since you were never contacted regarding an appraisal or bpo.  After you ask the question, tell them that you will be recording the conversation for your seller to hear.  Most times when you tell them that you are recording a conversation, you are moved immediately to a supervisor or an escalation department.  Good luck!

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on December 10, 2010 at 10:27am

Folks -

 

Do you know what a "Delegated" versus "Non-Delegated" Servicer is????  In this case, since the denial was so fast, I suspect Chase is a "Delegated"  Servicer. That means Chase is Delegated to make the decision for FNMA under the guidelines FNMA set forth in their servicing agreement with Chase.

 

"Non-Delegated" servicers have to send the package to the investor (in this case FNMA) for review and decision.

 

Why the "formal complaint" ?

 

Thom Colby

Broker

Newport Beach, CA 

 

 

Permalink Reply by Jim Schneider on December 10, 2010 at 12:52pm

Another good reason for the Qualified Written Request to be sent in as soon as you list the property. I have, "does the servicer have delegation authority to accept, reject, or counter offer a proposed short sale" in my QWR. The definition is in the question in case whoever get's the letter at the correspondence department doesn't know what delegation authority means.

Permalink Reply by Tracy Howard on December 10, 2010 at 1:16pm

Jim,

Great answer!  For at least the last 12 months, I have been including a QWR with every short sale package to any servicer, or to the bank if they service the loan.  They are required to acknowledge receipt within 20 days and reply to it within 60 days.  (I know you know this, Jim.  Just including it for those who may not.) 

 

While we are in the pre-listing stage, I offer my soon-to-be sellers a  free fraud audit of their loan papers and closing papers.  (You would be surprised to see how much these banks have done to make sure these loans fail.  It is truly appalling.)  Then, when we list the property, I have a good idea of what the QWR is going to request.

Permalink Reply by Ray Snook on December 10, 2010 at 2:01pm

Hi Jim

I have not used a QWR before,  I assumed- wrongly it seems- that they were primarily used when the borrower had reason to believe the loan was misrepresented or miss-sold. If you are using them in short sale negotiation where there is no evidence of miss-selling of a loan then I would be extremely grateful for an example QWR if you are willing to share. Would a QWR help me now if Iwere to submit one?

Jim Schneider said:

Another good reason for the Qualified Written Request to be sent in as soon as you list the property. I have, "does the servicer have delegation authority to accept, reject, or counter offer a proposed short sale" in my QWR. The definition is in the question in case whoever get's the letter at the correspondence department doesn't know what delegation authority means.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on December 10, 2010 at 2:08pm

See attached or go to HUD website.

Attachments:

• QWR Sample from HUD.pdf, 30 KB

Permalink Reply by Ray Snook on December 10, 2010 at 2:10pm

Thanks Thom :-)

Permalink Reply by Jim Schneider on December 10, 2010 at 6:16pm

Ray,

the QWR has been used for a number of reasons, but it's main use to us as agents doing short sales is to find out the investor behind the mortgage.

The HUD website suggests,

"

Attention Customer Service:

Subject: [Your loan number]
[Names on loan documents]
[Property and/or mailing address]

This is a "qualified written request" under Section 6 of the Real Estate Settlement Procedures Act (RESPA).

I am writing because:"

then write in what information you would like, say the name and contact information of the investors on the mortgage and the name and contact information of the mortgage insurerers on the mortgage. Then request that the information to be sent to you, or the sellers' attorney, and include the letter of authorization. I'd put the sellers' SS#'s on their too.

 

Call in to the mortgage servicer and ask for the phone, fax, and mailing address for the "correspondence department", I would both fax (because it's faster) and mail (because that's how it's actually supposed to be done) the letter in. BTW this is not my bright idea, all props go to Ben Benita who was kind enough to share it on this board. Good luck.

Jim Schneider

Chicago Suburban Broker

 

Ray Snook said:

Hi Jim

I have not used a QWR before,  I assumed- wrongly it seems- that they were primarily used when the borrower had reason to believe the loan was misrepresented or miss-sold. If you are using them in short sale negotiation where there is no evidence of miss-selling of a loan then I would be extremely grateful for an example QWR if you are willing to share. Would a QWR help me now if Iwere to submit one?

Jim Schneider said:

Another good reason for the Qualified Written Request to be sent in as soon as you list the property. I have, "does the servicer have delegation authority to accept, reject, or counter offer a proposed short sale" in my QWR. The definition is in the question in case whoever get's the letter at the correspondence department doesn't know what delegation authority means.

Permalink Reply by Wendy Rulnick on December 11, 2010 at 6:43am

Thom, Thank you for posting the PDF.

Thom Colby said:

See attached or go to HUD website.

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