Is there anyone out there that may possibly remember this song? They say that back in the early 1900s (no, I was not born quite yet), the Wells Fargo Wagon used to deliver goods to towns across the nation. Now, apparently, Wells Fargo taketh away. You can read about the latest on the Wells Fargo Short Sale Policies and foreclosure postponements here.
Wells Fargo Will Allow Foreclosure Postponements for Short Sales on a Case-by-Case Basis
Last month, Wells Fargo employees that processed short sales advised agents via email that there were changes made to the existing policy with regard to the postponement of Trustee’s Sales (foreclosures).
As reported by the National Association of Realtors®, Wells Fargo will permit the postponement of a scheduled foreclosure in connection with a short sale but only in specific situations. If the loan is owned by Wells Fargo (or Wachovia) or if the loan is serviced by Wells Fargo but owned by an investor, the Wells Fargo policy will allow for one foreclosure postponement if (and only if):
- Wells Fargo has a short sale sales contract in hand that has been approved (including approvals from junior lien holders and mortgage insurers, if applicable)
- the buyer has proof of funds or financing approved
- the short sale can close within 30 days of the scheduled foreclosure sale.
Wells Fargo and the National Association of Realtors® also report that not all investors allow for such postponements. Additionally, in jurisdictions where the courts will not approve the delay, the postponement policy will not apply.
According to the report, Wells Fargo is willing to address situations that do not qualify under these guidelines on a case-by-case basis.
I’ve had a few Wells Fargo foreclosures come up in the last two weeks, and we were able to postpone one of the sales for sixty days. While we were thrilled to be able to help the client and process the short sale, working with Wells Fargo to postpone the sale was a time-consuming pursuit.
My best advice for short sale sellers with a Wells Fargo mortgage who are facing foreclosure is to be very pro-active, so that they are not faced with an unfortunate situation.
Photo: flickr creative commons by ashleigh290