Anyone who has been a party to a short sale transaction has experienced the lack of common sense and practicality involved in the process. Many people ask us questions like “did you tell them that there are lower comparables? Or did you tell them about all the repairs that the home needs? Or did you tell them it’s a cash buyer and that they are going to cancel the contract soon?
Truth be told, the lender’s negotiators and other lender staff members have little opportunity to be flexible, logical, reasonable, or rational. Their job is to follow the strict, and somewhat inflexible guidelines created by the lender/investor, and when all steps are complete, only then can they issue an approval or denial.
And many times we receive irrational or unreasonable approvals from the lender’s negotiators. We may receive an approval which requires a closing date that precedes the date of the approval, or we obtain an approval requesting a net amount to the lender that is excessively higher than the original note amount. However, most recently, we recently reviewed a letter from a lender that may just take the prize! Only quoting it verbatim will do it true justice:
“Chase Home Finance, LLC is writing to inform you that your request for a DENIAL has been declined…”
Yes, Chase apparently declined a request for a denial!
To see the actual approval letter click on the link below:
Written and posted by Karen Gagliardi,, Business Development Coordinator with Berlin Patten, PLLC.