Home > Blogs > Steve Loynd > steve's White Mountain Blog

Wells Fargo Short sale Rant.

By Steve Loynd

Managing Real Estate Broker with Alpine Lakes Real Estate Inc., NHRE# 02863

November 08, 2011 05:20 AM

For anyone that does short sales, you already know how frustrating it can be to deal with the lender. The constant shuffle of new names that pick up the deal as it progresses through the process...and the endless forms required for everyone to sign. Here is a new Twist: A month ago I received a Short sale Affidavit form that required all parties to the transaction to acknowledge (among other things) no money being paid to the seller, no lease back after the sale, the parties aren't related ...standard stuff. Everyone signed...down loaded to the bank's software as a PDF they have it back in less than a week. Fast forward to closing...more forms and signed HUD off to the lender on Friday day of closing. All done Congratulations - right? - AHhhhh...not so fast! On Monday 3 days after the closing I get a new Short sale Affidavit this one is not the one page version that was signed a month ago...this one is four pages (and her's the kicker ) it has to be returned by noon the next day...with 7 Notary stamps - and the buyers and seller all live in different states - and had signed by mail on the closed sale. NONE ARE AVAILABLE WITH 16 HOURS NOTICE TO SIGN THIS NEW VERSION OF A DOCUMENT THEY SIGNED A MONTH AGO!! Wells Fargo wants to Cancel the sale - that closed 4 days ago...because they changed a form that was already signed.

You can't make this stuff up folks...the wire transfer is complete and deed is on record, they are going to return the funds and cancel a cash closing - because they added 3 pages of notary stamps to the original form they send me a month ago - and got back signed three weeks prior to closing.

Re-Blog

Comments(52)

Comment

Show All Comments

Sort:

J. Philip Faranda

Howard Hanna Rand Realty - Yorktown Heights, NY

Associate Broker / Office Manager

It amzes me how their god is administrative nonsense instead of getting results for people who want to buy and sell. What is theis world coming to.

Nov 09, 2011 04:20 PM

Steve Loynd

Alpine Lakes Real Estate Inc., - Lincoln, NH

800-926-5653, White Mountains NH

Phil...the seller hasn't made a mortgage payment in months, the condo association was due money the town has taxes...and we are going in to winter heating season - this attached condo could cause damage to other units if it froze there is no logic to this whole deal.

Nov 09, 2011 10:55 PM

Dawn Maloney

RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH

330-990-4236 Hudson & Northeastern Ohio

Banks just do not get it. Glad you got this turned around.

Nov 10, 2011 09:34 AM

Sharon Alters

Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL

Realtor - Homes for Sale Fleming Island FL

Steve, just reading this after your new post on how they reversed their madness decision. Wow, this would have been a new low in the annals of short sales.

Sharon

Nov 10, 2011 01:00 PM

Sussie Sutton

David Tracy Real Estate - Houston, TX

David Tracy Real Estate for Buyers & Sellers

This is scary as hell! I have not done one and this story makes me want to run in the opposite direction! I told a potential client just today if they chose a short sale I would find an experienced agent to handle the deal. I guess that makes me chicken poop.

Nov 10, 2011 03:40 PM

Dianne Goode

Raleigh Cary Realty - Raleigh, NC

Realtor/Broker

Followed the link here from your "happy ending" post. No gray areas in this one! I've never heard of any person or entitiy UNCLOSING a transaction -- but doing so to get signatures on a disclosure form? Beyond absurd.

Nov 11, 2011 02:19 AM

Anonymous

Janice Lawrence

Steve~My husband and I have been working on a WF short sale since March......2 loans both with Wells purchase money seller transferred out of state. We have completed plenty of SS and this one is the worst. We are on the second buyer, I have lost count of the number of "contacts" I have been passed off to. Received approval on Sept. 22 (from my "negotiator" who was a part time employee-left voice mails and e-mails unanswered for two months) for the first (The second has been "awesome" communicates weekly-no issues have issued 3 approval letters to date) Buyer went away, had back up's ready to write. Submitted new buyer's contract-matching the approval letter to the T in less than a week submitted on Sept 29 calling and e-mailing requesting escalation, to COE 11/7. Negotiator fired-no surprise there, More forms to upload-(To date I have uploaded 63 forms into equator for this ONE file-some over and over as WF REMOVES them) WF states the MLS needs to be changed to ACTIVE-not Active With Contingency the new negotiator states they cant access file because it is still in "Pre-Marketing"---WF kicks out the file and denies the Short Sale. With Approval letter in hand to COE on 11/7, they deny the short sale. I have contacted the "specialist" assigned to the file for this week-voice mail states 48 hours for a returned call-we are at 72+ right now. I have called the supervisor's, Office of the President----in your "issues" with WF-can you pass on a contact that actually "gets it" that you can share. Thank you

Nov 11, 2011 03:08 AM

#39

Terkel Sørensen

Real Estate Places - Temecula, CA

Realtor, 951.805.0773 , Bank owned and Short Sales

Steve, that is a joke. i feel you.

Nov 11, 2011 03:31 AM

Kim Dove

Watson Realty Corp - Jacksonville, FL

Realtor - Jacksonville FL

Steve, I came over from your follow up post. This is just beyond ridiculous!

Nov 11, 2011 06:30 AM

Kate Akerly

Kaminsky Group - Manhattan Beach, CA

Manhattan Beach Residential Sales

How do you "cancel a closing?" Sounds crazy . . .

Nov 11, 2011 06:37 AM

Steve Loynd

Alpine Lakes Real Estate Inc., - Lincoln, NH

800-926-5653, White Mountains NH

Janice...I feel your pain, I went back to check on the files that have been uploaded to equator , and since this deal was scheduled to close and I sent the final HUD (signed and completed)...they cleared the task file. There is no prior evidence of the work - as- equator sees it as closed.

Nov 11, 2011 06:39 AM

Steve Loynd

Alpine Lakes Real Estate Inc., - Lincoln, NH

800-926-5653, White Mountains NH

Mike & Kate...I said it before - but it's like trying the take an apple pie and turning it back in to an apple...can't be done.

Nov 11, 2011 06:41 AM

Evelyn Kennedy

Alain Pinel Realtors - Alameda, CA

Alameda, Real Estate, Alameda, CA

Steve:

Don't they understand that the goal should be to sell the home. If they change a form after a close, they should accept the fact that you did everything they required during the escrow. No take backs. What a mess.

Nov 11, 2011 07:07 AM

Beverly of Bev & Bob Meaux

Keller Williams Suburban Realty - West Orange, NJ

Where Buying & Selling Works

WOW! I'm glad this all worked out due to your diligence. I hope your clients knows how you truly saved the deal. We had the contrary experience with Wells last month. We closed in 45 days. Wells was responding and providing things quicker than the buyer.

Good luck on future deals.

Nov 11, 2011 10:40 AM

Cheryl Dukes . . . . . Intown Atlanta

Guaranteed Offer for your Home - eXp realty - Atlanta, GA

Yea Active Rain. As a fairly new member, it's great to know this platform has so much Clout.

Nov 11, 2011 01:59 PM

Steve Loynd

Alpine Lakes Real Estate Inc., - Lincoln, NH

800-926-5653, White Mountains NH

Beverly...every deal is different - it is the nature of the human factor, it would be nice to have a bit of consistency.

Nov 11, 2011 03:36 PM

Gareth Ellzey

Century 21 Hellman Stribling - Austin, TX

I recently had a totally different situation - a HUD foreclosure that cratered because the pre-qual-ing lender then found that there was not sufficient time left on the deferral of the student loan (go figger - the loans are deferred year to year; the underwriter wanted a THREE year deferral – this is a whole 'nuther rant). We applied to get the earnest money back well within the time. Nothing happened. We re-applied. Nothing happened. I called; the person who allegedly was handling it had left the agency, so sorry, your paperwork must have been lost. The earnest money had been absorbed by HUD, you're out of luck. SO, I had my client contact a Senator, WITH all the documentation of the emails we'd sent, and a week later (FIVE MONTHS LATER), my client got her check. Moral - You can actually USE those Congress critturs to help us.

Congratulations on pulling this one out of the fire.

Nov 12, 2011 02:46 AM

Steve Loynd

Alpine Lakes Real Estate Inc., - Lincoln, NH

800-926-5653, White Mountains NH

Gareth...It is good to know even Goliath can be beaten.

Nov 12, 2011 05:01 AM

Demarco & Marisa

Remax Kings Realty - Riverside, CA

"The Choice is Clear!"

I'm happy that you won this deal and beat the bank! They make no sense most of the time, unfortunately.

Nov 13, 2011 03:41 PM