Profile picture for riburn3

Chase Short Sale Extension

Hello,

I am in the final process of purchasing a house on a short sale, and in the very last week (this past week) when we were supposed to close, the underwriter for my loan requested a desk review of my appraisal on Monday (we were supposed to close Friday).  My broker assured me this wouldn't be a big deal as it typically takes 24 hours in our area and was likely because the house was appraised for significantly more then our purchase price, however two days went by and we heard nothing.  It turns out the person it was sent to "declined" the desk review, which I guess means they didn't want to do it.  My mortgage broker who deals with a lot of short sales told me in her 30 years in the business, she had never seen that happen before.

Flashforward two days before closing (Wednesday), it was sent out again, and two more days go by, to the closing date, and it was "declined" by two more people for the desk review.  Chase granted us an extension over the weekend, however the desk review still wasn't in by 5pm Friday as we were told it would be by the person conducting it. At this point, it means we won't be closing on Monday either unless through some miracle the desk review gets in very early Monday morning.

My question to those that have dealt with Chase is, how easy has it been to get extensions on short sales with them lately?  Apparently due to this snag my loan has been "fast tracked" my mortgage broker tells me, and as soon as the underwriter gets the desk review, we will be able to close within 24 hours or possibly the same day if it's in very early.  I would hate for this whole thing to fall apart due to a denied extension when we are on the cusp of closing, only requiring a few days at the most to close. .

Thanks.
  • April 28 2012 - US
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Answers (4)

"Declining" and assignment outside of a full appraisal is becoming more common these days. I asked a friend of mine who has been an appraiser for over 10 years and he told me that he declines desk reviews because he's basically working for FREE.

This is more of a flaw in the whole HVCC thing: layers have been added where lenders can't simply CALL an appraiser to go to work. It has to go through layers: occasionally management companies who have a software that "assigns" an appraiser or agent. The appraiser has the option to accept or decline, sometimes given 48 hours to respond. (lenders -- please correct me if this assumption is wrong)

In regards to the Chase extension, I agree with the agents' comments. They've been one of the better 1st lenders to work with and your chances of getting an extension should be pretty good as long as there isn't a looming foreclosure sale date.

Another concern I'd have in requesting extensions is whether the listing agent prorated closing costs (taxes, HOA, loan principal, etc) to compensate for worst-case scenario. Short sale approval specify a NET amount due to the lender. If you're short, someone will have to pay.
  • May 01 2012
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Chase is one of my better banks to deal with in terms of negotiating
a short sale. I have not run in to any issues with extensions- of course
the reason for the extension were reasonable. Best of luck

  • April 30 2012
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Profile picture for riburn3
Thank you for the advice.  Trust me, my broker is already foaming at the mouth.  The whole reason someone finally accepted the desk review is she said she will never use this appraisal group again if they don't get it done. 

I'm glad to hear what you said about Chase.  Thus far they have been very quick and helpful throughout the process.  The woman from Chase handling our case locally according to the selling agent has been wonderful. 

I would hope our circumstances would warrant an extension considering the problem is not with my worthiness and it's just a dumb appraisal snag at the end of the process.  We are otherwise ready to close and it would seem foolish on the banks part to shut the whole thing down when we need a few days at most.  I've heard worse things happening on short sales though, particularly with Wells, so I'm just trying to get a little assurance.  We are merely asking for days, not weeks.
  • April 28 2012
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Profile picture for Ofe Polack
At opening of business on Monday I would contact the top person you can talk to at your bank and give them hell.  I have never heard of anything like that in my career.  It sounds like one of those jokes you hear "Not my job"good luck!  They owe you not only a good explanation but instant action.  Chase is OK and probably the most understanding of all banks, but there has to be a good reason for them to give an extension.  As a business person I would like to to know why two employees would "decline the desk review" of an appraisal when time is of the essence.
  • April 28 2012
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