Real Estate Agent with Coldwell Banker Advantage 224048

This is a follow up to my recent blog about finally getting my short sale closed.

I WAS WRONG! WE ARE NOT CLOSED YET!  The bank, WELLS FARGO, refused to pay for termite treatment.

I am representing the seller. The buyer's agent and I have agreed to reduce our commissions to get this deal closed and we are having a hard time getting a response from the closing agent at the bank. The attorney has been trying today, I have emailed the closing agent and the buyer's agent has emailed her. The buyer's loan is about to run out and  I really do not know what else we can do.

Has anyone else experienced this?

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Thank you & Have a great day,
Linda W DeRusha

Coldwell Banker Advantage
620 NC hwy 42 W
Clayton NC 27520
Office (919)553-4003 Fax (866)601-1874
mobile (919)418-7442


Linda W DeRusha is a licensed real estate broker in the state of North Carolina selling residential real estate in Clayton, Smithfield, Angier, Benson, McGee's Crossroads, Garner, Wendell, Knightdale and Raleigh.

For more information on our local real estate market, or to see or sell a home in Clayton, Smithfield, Angier, Benson, McGee's Crossroads, Garner, Wendell, Knightdale and Raleigh., visit my website at  or give me a call at 919-418-7442.



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Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Yes, Linda, I have had this or a similar issue.  Unfortunately our commission gets a little smaller the harder we work, but at least we get paid.  Keep working. Good luck.  Let us know.


Dec 22, 2009 08:35 AM #1
Jim Crawford
RE/MAX Paramount Properties - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

It is called "short sales."  Every day on AR and many real estate publications I read about the nightmares...we have to ask ourselves are they worth it?

Dec 22, 2009 08:43 AM #2
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

I take it that you are having issues with the final HUD approval?

They should have told you that they would not approve termite damage. At this point, I hope you shoved the termite onto the buyer's side of the HUD and submitted the final HUD to the Wellsfargo negotiator.

Get a hold of Wellsfargo and let them know that you need to close and they need the green light from the negotiator and see if you can have the negotiator give it or have the negotiator's supervisor do so.

Also, once you remove the expense from the seller side and asuming you will net at least what is on the approval letter and all expenses are within the approval guidelines, you can close and deal with any consequences that might ocur. Maybe leave some money in settlement/escrow from the buyers until the conditions are met.

Very rarely does this happen because the negotiator and I go over the HUD to see what is acceptable and what is not.

Good Luck!

Also, I disagree with any comment that states that short sales are difficult or that an agent must contribute to the short sale. With the proper procedure, disclosure and systematic approach, you should make your commissions without contributing to the short sale or having it reduced by the lender.

Dec 22, 2009 09:05 AM #3
Valerie Almanzar
Your Casa Team - Keller Williams Realty - Rio Rancho, NM

Does the negotiator know the buyer is going to walk?  I'm going to assume they do.  I put a great deal of pressure on the negotiator and tell them that this property will not sell if they don't approve it ASAP!  Good luck!

Dec 22, 2009 01:12 PM #4
Minna Reid
Reid Real Estate Group LLC - Woodbridge, CT
Reid Real Estate Group

Wells Fargo approval letters are pretty open ended as far as what they will and will not pay for. However most lenders will not approve a hud with seller paying for repairs/inspection etc. The best way to tackle this one would be to move the charge elsewhere. For example if you have already signed up for the paycut, instead of lowering your commission, keep the commission the same, and you and the buyers agent pay for the termite treatment. Or have the buyer ask for some closing costs to get paid instead of cash for the termites specifically. If he gets some of his closing costs paid, he'll be able to use the extra money to pay for the termites himself. If you can meet the approved net with the fee, you can likely just move the fee elsewhere. Most of the time it is just a matter of reworking the HUD - not eliminating a fee.

Dec 23, 2009 12:17 AM #5
Robert L. Brown - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Getting ready to dive into short sales. I better have my game face on because i haven't heard great things about them. I know they can be a handfull. Going to a workshop next Wednesday.

Dec 23, 2009 07:37 AM #6
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

Yes Linda this is a common one.  Short sales are usually "as is" which I tell my buyers right from the start.  Putting seller to pay for termite or any other repair - on the contract could get a denial from the lender or if they overlook it, a stale mate during escrow.

Jan 01, 2010 04:11 PM #7
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Linda DeRusha

Broker/Realtor, ABR,ASP,CDPE
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