Nov
30
New Rules for Wells Fargo Short Sales
Posted by tbraunagel under For Buyers, For Realty Professionals, For Sellers, General Information
Posted: 28 Nov 2010 03:03 PM PSTAgents working short sales with Wells Fargo or Wachovia should be aware of some new regulations.With much speculation on this subject in recent weeks, DSNews reported new rules regarding Wells Fargo short sales when foreclosure is within 30 days. The bank™s new policy will allow for only one foreclosure postponement given the following criteria: § Wells Fargo has an approved short sale sales contract in hand (if necessary, approvals from junior lien holders and mortgage insurers as well); § buyer has proof of funds or is preapproved for financing; and § the short sale can close within 30 days of the scheduled foreclosure sale.Beyond these restrictions, Wells Fargo did note that investors may vary in what they allow, and some states require the courts to approve any delay.If you find yourself against the clock with a Wells Fargo short sale, there is still hope. The bank expressed its willingness to address situations outside these qualifications on a case-by-case basis.In addition, agents are having success overturning foreclosures with persistence and strong cases for short sales. For instance, Gayle Henderson, a CDPE in Scottsdale, Arizona, has been able to overturn three foreclosures this year by emailing decision-makers at the lending institutions involved, but stressed that your argument for postponement must be compelling.The Distressed Property Institute is actively working with Wells Fargo to determine how agents can best work short sales with the bank. We™ll keep you posted on these discussions.
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