Have a short sale with Chase. Got net required on settlement statement, but the FHA appraiser for buyers lender stated that two windows had to be repaired before they could close. I asked my negotiator if we could use some of the relocation incentive for these repairs(the buyers bank said the repairs could be escrowed for after closing). Send over settlement statement to Chase with copies of the repair estimates, now she messaged me back and said the relocation incentive can't be applied toward these repairs because the home is sold in as-is condition?
I would not ask CHASE if can use the incentive funds for repairs but ask them does the investor on the loan allow for lender required repairs for an FHA buyer. Also how much is the estimate to replace two windows?
repairs are $900 total.
let me ask them about lender required repairs, I told her that, but she may not understand fully, she seems new...
This is from Mortgagee Letter 2014-15
Owner-occupant mortgagors, acting in good faith, who successfully sell their properties using this option are relieved of their mortgage obligation and are entitled to consideration of up to $3,000. The owner-occupant mortgagor may apply the $3,000 consideration to resolve junior liens and to offset the sales transaction costs not paid by HUD (including a home warranty plan fee, costs of optional repairs, and buyer’s closing expenses).
Deb this is for FHA backed loans Craig has not stated if it is an FHA or not
sorry, i meant to put that in initial message, yes, this is an FHA short sale.
Whoops, you're right, he hasn't said it was FHA. That's what I get for "speed reading" where I saw "FHA Appraiser." Thanks for catching that :)
yes was FHA short sale and buyer is also FHA
thank you Deb! I found the doc on HUD's very slow website, and have sent a copy of it via equator....I'll see what she says.
so here is update on this. I sent her a copy of the FHA guidelines(the new 2017 doc). I told her to view proper page number, etc. All she keeps coming back with "home is sold in as-is condition" and we are not allowed to cover these repairs. She rattles off the list of what can be used from incentive, which is correct list...only not adding in the "general repairs" in the guidelines. I have asked multiple times what "general repairs" are as FHA states can be done, but she refuses to answer. I just don't understand the banks sometimes. I have asked her to have supervisor contact me.
Craig.. I am assuming you are dealing with a processor instead of a negotiator As I have stated on previous post that CHASE is more concerned with their audits then they are in approving short sales. What is the name of person you are dealing with as I probably know who her supervisor is?
I just sent you personal message with person I am dealing with. I would assume I am working with negotiator, I sent over settlement statement so they could issue approval letter, and suddenly she says they can't cover these repairs...
You definitely need management involved I don't know how aggressive you are but I have learned in dealing with CHASE you must be extremely firm Ask her for name and phone number of her supervisor or manager Do not accept .. "They are in a meeting they will call you back" I have won every battle when I have dealt with their "bank silliness" and delaying approvals .. reach out to me if you would like