Need advice on approved Chase short sale - now going to action!

I received short sale approval from Chase.  On a Friday we found out the buyer couldn't get the loan.  That following Monday we submitted an all CASH offer so we could expedite the close.  3 weeks later, via Equator, we were told a new approval letter would be issued.  Another week later we were told they reordered a BPO.  That was supposed to happen yesterday.  Today, via Equator, the message was that Chase no longer services the loan.  The NOD was filed with an auction date of Oct. 9.  Could not get ahold of the negotiator today after numerous attempts.  What can I do???  My seller qualified for the short sale and now Chase is not servicing the loan anymore?  Can the auction date be stopped?  I have no idea who the new servicer is(?)  This is crazy as we could have had this closed over 2 weeks ago.  Is there a way to escalate this again (even though that hasn't worked previously)?  BTW this short sale originated 9 1/2 months ago.  Any advice??

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A service release letter would have been sent to the homeowner 30 days prior to release. As usual, they don't read them and don't tell you about them. Chase can tell you where it went - it doesn't take the negotiator to tell you.

If you had an approval, you'd have a good shot at getting the new servicer to finish the deal. Your BPO expired, you have no approval, a new servicer will likely start at the beginning.

Usually, the investor is who moved a bunch of files from one servicer to another - it is unlikely that Chase can do a thing. Thinking about the delays in servicers doing anything, you're cooked. It can be 30 days before they even get the file into their system. Another week to assign a processor, another week's of wrangling around, if you push them to do their job, then or a week later, after you have corrected 19 periods and 3 commas, they will order the BPO, and 2 to 3 weeks to get the BPO acknowledged and then they will start looking at the docs for the sale.

My seller has gone to a local judge via a lawyer and got the sheriff sale postponed - years ago. That probably still works. You might also try to argue with the investor that they played around for months then yanked the rug by making it impossible for this new buyer to even find the servicer let alone process the sale. You might also try enlisting a state senator - they seem to have some weight.

Banks are often punished by local law if they slide a sheriff sale - in their vast political wisdom, politicians can make banks start the months of foreclosure process all over if they create a delay. They can also be monetarily penalized, so begging the servicer to hold off the sale is not going to fly. On the other hand, for short periods of time, the attorney for the servicer doing the sheriff sale often will "lose" the paperwork and create a delay for you. But you need more than a couple of weeks to the next month of delay for your situation.

Joe: I learned from your response and I appreciate the time you invested in it! Thanks! 

Thank you so much Joe! You're correct as my seller didn't say anything about a letter. You would think that when talking with Chase on Monday they would have said something as its hard to believe no info on the file being moved wasn't noted - or maybe not. It's just sad to see that after all these years of short sales, Equator, so-called streamlined systems, that the process hasn't improved much. Heartbreaking for many sellers that truly qualify for a short sale. Now, the hardest part is calling the sellers. Again, thank you for sharing your knowledge. (The sellers live out of state so getting attys and fighting this would not happen in time).

Kathy...email me directly: [email protected]  

Best,

jan

Thanks Jan. I sent an email.

One issue that always is concerning is the other side of the deal - buyers have to be qualified, should perform their inspection with 15 days so they can walk early if desired, and keep in touch with the buyer's lender and underwriting. Its crucial. After all of the time and effort - it makes sense to make sure the buyer is solid.

Thanks Pattilynn. I agree. The buyer was qualified per the lender on Thursday afternoon and provided the full loan approval. We were set to open escrow on that Friday when the underwriter came back with a no go. It was a ridiculous condition that the buyer had already provided sufficient documentation to them. The BA fought it but to no avail. We never got to the inspection contingency. The new buyers offer on that Monday was all cash and could have closed in a week. Chase took so long to respond even with contacting them 2-3 times a week via Equator and phone contact.

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