namI have been working on a short sale with Wells Fargo and First Tenn.   The first mortgage is at $187K with Wells Fargo, the second is $68K with First Tenn....  My client is now 4 months behind in payments.  We had a good offer at $185 K.  The Wells Fargo appraisal came back at $198K and the BPO from First Tenn. came back a month later at $190K. 

Wells Fargo took 2 months to deal with the short sale and first rejected it because they felt that they were entitled to 100% of value in a declining market.  The negotiator never talked to me or returned any phone calls.  I wrote back a fax saying why I thought they should accept the short sale (letter below).  Later without responding to any points of my letter they cancelled the short sale because of the second.  They said they would give 3% but the second wanted 10%. I tried to contact my short sale negotiator but was told I didn't have one any more.  They couldn't answer any questions until I had another offer.....  Grrrr....  My client would like this to end so I tried to talk to them about deed in lieu of foreclosure.  They said they couldn't use anything the in the short sale package, and he would have to resubmit.  They told him to contact the second but the second has told him Wells Fargo needs to make the offer.  We are still at least 4 months from foreclosure (no notice).   Everytime they call him he gets a different story (sort of like me)....

My questions are how do I come up with the $4800 difference from what the second wants and the first is willing to give?  Can I write the real estate contract that spells out what is going to happen?  What do you do when there is trouble between the banks.  Wells Fargo's investor is Fanny Mae.  Tomorrow I'll find out what the second's investor is.

copy of letter

                                                                                    Deborah Holmes

                                                                                    Gold Key Real Estate

                                                                                    915 N. Cole Rd.

                                                                                    Boise, ID  83704

                                                                                    (208)761-2551

                                                                                    D5holmes@msn.com

June 11, 2008

name cut

Short Sale Negotiator

Wells Fargo Loss Mitigation

Subject  WF#0148798267, Jeffrey and Cher Czartoryski, 3632 Bottle Brush Ave., Boise, ID 83713

Good Day,

My buyer will raise her offer to $185,400.  Not a penny more!  This is 94% of the appraised value.  There are many reasons your investors should accept this offer.

• The Boise market is declining, houses are not selling at Market Value
• Your investor only has to pay a 3% commission since I have both sides of the deal, saving your investor $5000.
• My buyer did not ask for help with closing costs.  Your investor is willing to pay up to 3%.  That is another $5000.
• Short sales do not sell for market value in any market these days.
• Your investor is losing almost $1400/month in lost payments.
• Your investor has a bad loan on their books that could be fixed quickly.
• I already had one buyer walk when I couldn’t promise a quick sale.
• My seller is maintaining the property at the moment (those helping hold the value).
• I will probably cannot get an offer at $198,000 until the market improves (which it shows no signs of improving.

There are also humanitarian reasons to settle this deal.

• You have made the buyer and seller wait almost 2 months.
• My seller is a fine upstanding member of society, he is a school teacher who has fallen on hard times.  He is the divorced father of two daughters.  Without the second income from his ex-wife , he cannot pay the $1900/month between the  two mortgages.  He called me when he ran out of savings and realized he couldn’t make the next payment. 
• My client needs to move on with his life.
• The delay caused by the slow negotiation is ruining my clients credit.

Please  reconsider our offer .  It is a good offer and could be settled

Sincerely,

Deborah Holmes