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Wells Fargo Changing Short Sale Practices

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Real Estate Agent with Century 21 Redwood Realty

Wells Fargo Changing Short Sale Practices

I received an update this morning from The American Banker Report  in their article"Wells Fargo Curtailing Short Sale Extensions" that Wells Fargo will no longer allow extensions on their approved short sales.  Out of the last dozen or so short sales that I have closed, none of them have been able to close by the original approval date.  Every single one has required an extension for one reason or another - particularly when there are 2 mortgages on the property.  I am interested to see how this is going to play out.   So here is the real question, how much money is it going to cost us as tax payers and the banks in additional attorney's fees to give an extension on a short sale?  If a week to 30 day extension is going to save the bank $20-30,000 in foreclosure costs... why not wait?

Much of this, I'm certain comes from Realtors who have made it a practice in their business to present fake contracts to the banks and when the approval finally comes around, they need additional time to find a buyer.  I hope and pray that when the negotiator deals with Realtors, they have the ability to know who is legitimate and who is not.  By the grace of God, 99% of all of my short sales have closed with the first buyer that wrote an offer.

I hope and pray that home sellers are taking a very good look at the Realtors that they are employing to ensure that they have a working knowledge of Short Sales and the practices of the agents who have been in the market place.  A great agent has contacts within a bank that can make the process easier.  A great agent does not take no for an answer from the first person they speak to.  A great agent cares more about the client than their paycheck at the end of the day.  A great agent stays on top of what's going on with each and every short sale file and tries to have a solution before the problem arises.

To all my Realtor friends out there, let's make some noise.  Bringing a short sale to the table saves the bank and the tax payer tremendous amounts of money.  I will certainly be writing my local congressman to voice my opinion on this matter.  I hope that you will too.

 

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Show All Comments Sort:
Kim Sellers
Lake Arrowhead, CA Coldwell Banker - Lake Arrowhead, CA
Lake Arrowhead Realtor - BRE#01412099 - Lake Arrow

I think some of these companies should be highly investigated on their practices, they are very much like scams.  These poor people are trying to sell the home and are not just walking away, they need help.

Oct 04, 2010 12:49 PM
Dan Rosenberger
Harvest Realty - Westfield, IN

I read about the Wells Fargo policy this morning in DS News.  it is ironic that this policy is announced just as the story of the Repogate crisis is unfolding.  It appears that many banks have a flawed process for pursuing foreclosure.  I would think that banks would be much more inclined to do a short sale and avoid the time, hassle, expense and implications of a foreclosure.

Oct 04, 2010 12:55 PM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Very informative peice Cindy. I agree that a good network can certainly alleviate the sales process

Jun 13, 2012 12:49 AM