Tuesday, October 05, 2010

wells fargo announces "NO MORE SHORT SALE EXTENSIONS!"

Well I sure hope that Wells Fargo gets faster about giving short sale approvals and gives adequate time to close them!       
With no ability to get extensions buyers who need financing on their short sale purchases need to be extra diligent to getting their loan commitments on time to meet the approval time frames provided from the lender.  Wells fargo will need to be realistic to Junior lien holders having to also agree to the short sale approval.
In the past two out of three short sales with Wells Fargo that I have closed here in Bradenton, FL, A short sale needed an extension. 
In one instance I sold a short sale in Heritage Harbour the seller's second lender agreed to a short sale but insisted on more cash then Wells Fargo was willing to offer them.  They then wanted a cash contribution from the seller. Then Wells Fargo balked at the cash the second was to receive, and requested they be paid that as well.  It took a few weeks to work through this difference between the bank and Bank of America (who held the second).  That deal would not have closed if Wells Fargo did not agree to an extension of the approval.
In another deal I had a buyer who had issues with getting their mortgage commitment from their out of state lender.  Luckily we were able to get an extension on the approval, and the buyer was able to get through all the hoops that their lender had set up.
Many times second position lenders will not give a written approval until there is an approval from the first lender.
This is just going to add to the pressure to have everything in order when it comes to the closing phase of a short sale. 

I think that it is a mistake for Wells Fargo to issue such a strict rule when they don't typically adhere to there own time lines that they give out. 
10 days for a short sale to be approved is what Wells Fargo tells all their short sellers.  But, I have yet to see Wells Fargo actually approve one within 10 days of short sale submission.

To Wells Fargo credit, they have been getting faster at their turn around time.  And most agents would agree they are much better to deal with then Bank of America's equator system.  Bank of America could take some lessons from the way Wells Fargo now operates. 
This just reinforces the need for any home owner considering a short sale to make sure they get a Real Estate Agent with short sale experience.  Particularly with the lender that they are dealing with.
If you need help with a short sale in bradenton or sarasota make sure to give Joe Murphy a call.  Joe Murphy is a leading short sale listing agent in the sarasota and bradenton real estate market.  Dozens and Dozens of successfully closed short sales closed in Sarasota and Manatee.
For more details on this article
Joseph C. Murphy, Broker-Associate, BS, Previews Certified

Coldwell Banker Residential Real Estate
11215 State Road 70 Suite 105
Lakewood Ranch, FL 34202

941-780-3260 cell/text
941-739-6777 office
941-739-9120 fax

Posted via email from Joe Murphy Knows Real Estate in Bradenton

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