In November 2012 received incentive offer from Chase for a client. We complied with all requirements. We are now at the end of our negotiations and they are now declining the incentive, claiming credit officer decided not pay the incentive.
Negotiator first told me they did not recv the listing agreement in time. But I had documented they were wrong. Now back peddling and just flat out refusing the incentive...
Is there anything that can be done?
What options can I take?
Chase is strange like that. I had a deal where they denied my client $5000 relocation assistance. Okay so we moved on with the transaction. Client was more interested in avoiding a foreclosure and moving on with her life. Then towards the end of the transaction they offered my client $15,000! So I was floored to say the least and could not understand why they denied $5000 and end up offering $15,000. Good luck.
It's not just Chase, I have a BOA deal that was approved (after they denied the incentive) and the buyer walked the day before, we got a new buyer in place and did what their protocol calls for to "name change" and it has now been 6 weeks, and they want $3,000 seller incentive put on the HUD. Go figure...
Banks do what they want to do with little regulation. I would appeal to the supervisor, team leader, and as high up as you can go. Hope it works.
When lenders offer seller incentives there is usually a deadline you need to close the transaction by. The incentive is mentioned in the beginning and way before an actual approval letter is received. I think the timeframe is usually around 6 months or less. You were originally offered the incentive in November 2012.
Had one like that. Offered 20k. Then they had us remove it from the HUD. More delays. We put it back on the HUD and they paid, without saying a word.
Let's see. Chase wants the property sold but without covering move-out costs. Understandable. But if they made a commitment and you have something in writing, I think showing them the difference in value might work in your favor. I'd think they would prefer to spend money on the incentive rather than to spend an additional $40,000 or more on a foreclosure. I think an escalation may be in order, or at least the suggestion of an escalation. Remember that many of these bank negotiators operate on a bonus system. The sooner they can get a deal off the bank's books for the least amount of cost to the bank, the more bonus they make.
try calling Jamie Diamonds office at 212-270-1111 and advise you want to do an incentive dispute for a short sale. they will put you intouch with the short sale deparment at the administrative level. You can apply for a dispute . or go directly to Mary Reyes 877-658-5560. Remember the listing agreement must have been done in the time of the letter and submitted to them by that date. One day late and they will remove incentive......good luck and keep us posted. or email me directly firstname.lastname@example.org
I totally believe in due process and escalation works if you are diligent. I will say I have the attention of the executive offices now. Thanks Deborah for your contact info. If anyone does anything with Chase and needs to escalate this contact info will make heads turn!
While no decision has been made Mary has certainly been helpful and a determination will be made by the 9th...
Thanks again . These forums really are very helpful. We all have a truck load of info and experience and sharing here is exactly what we need as professionals that care.
If you complied with every condition in the letter where they offered the incentive (and are prepared to document it), I'm no lawyer (and remember you are not a principle in the transaction), but it seems like you have a contract. And Chase is in breach of the contract. If all the suggestions in the other replies aren't fruitful, we all know what your client's last recourse is. Someone has to keep out court system in business. :)
Chase denied my short sale client $3000 HAFA relocation in June 2012. Chase said the investor didn't approve it.
My homeowner said he wasn't moving if they were not paying.
It is now 14 months later, homeowner is still in the house, has not made a payment in just over 2 years. There is no foreclosure action.
What Chase does makes no sense to me. Good luck!
I don't think your homeowner has the right perspective at all and he makes less sense than Chase. Very entitled attitude.
The EXACT same thing happened to me the day before closing... I had an approval letter with the amount on it...I had the original incentive letter, etc.. I hung on to those letters so they didn't "disappear" in EQ. I kept escalating and finally had to draw a line and basically threatened them. I really didn't care if it closed and (with seller permission of course) they'd rather stay in the home for another year and a half until they could foreclose on them if they wanted to. We got ALL the money for that seller....but it was not easy. They admitted it was their mistake for offering it since our "listing" started too late, but they would stand behind the letter. ....of course it took several levels up to convince them of that.