Short Sale Policy at Wells Fargo
The email that I have shared below was in my inbox last week. I actually received it a few times from Wells Fargo negotiators who are working short sales with me. There new policy is described. Check out the email and then my comments below it:
The email about the Wells Fargo Short Sale Policy:
If you are receiving this email, I currently am working on your short sale file or have worked on your file in the past few months. PLEASE READ THIS WHOLE EMAIL AND FORWARD TO ANY PARTIES WHO MAY BE WORKING ON A SHORT SALE FOR WELLS FARGO.
Due to recent industry changes, we at Wells Fargo will no longer be granting any extensions for short sale close dates or postponing foreclosure/trustee sale dates. If you were issued an extension letter dated 9/14 or earlier, those extension letters will be honored, but no further extensions will be granted. Files must close by expiration date on the original approval letter or they will be removed. If your approval expires 9/15 or 9/16, you will have 48 hours to get me the final HUD for approval and close.
Please let me know if you have any questions! Thank you!
The part of this letter that struck me were the words ‘recent industry changes’. At the beginning of the year, I reported on the fact that the news media reported that Fannie Mae was making it a policy to prohibit the postponement of Trustee’s Sales. However, I really didn’t see that trickling into out market. Yet during the summer, things began to change. Most recently, I reported that Fannie Mae will now penalize servicers who allow delinquent mortgages to ‘languish too long.’
ASC, America’s Servicing Company, is also a Wells Fargo Company. Wachovia is a Wells Fargo Company as well. So, if you are working on short sales with any of these three servicers, do not forget to do your homework!
Here are several posts that I have written that touch on some of the very same points: