Foreclosure Postponed on my Wells Fargo Short Sale!
As a short sale agent, it gets very nerve-racking when the sheriff's sale date is approaching on any of my short sale listings. One short sale listing in particular, we were fortunate that the lender was Wells Fargo.
In November 2010, the National Association of Realtors reported that Wells Fargo had modified it's existing guidelines to allow the postponement of a scheduled foreclosure in connection with a short sale, but only in certain situations. This modification pertains to loans that are owned by Wells Fargo (including Wachovia), as well as loans serviced by Wells Fargo but owned by an investor.
The Wells Fargo policy will allow for one foreclosure postponement only if specified criteria are met, which are:
(1) Wells Fargo has a short sale purchase contract in hand that has been approved (including approvals from junior lien holders and mortgage insurers, if applicable).
(2) the buyer has proof of funds or financing approved.
(3) the short sale can close within 30 days of the scheduled foreclosure sale.
However, Wells Fargo did note that not all investors will allow the postponements and added that in jurisdictions where the courts will not approve the delay, the postponement policy will not apply. Although with files that do not qualify under these guidelines, Wells Fargo is willing to address them on a case-by-case basis.
With regard to my listing, we were able to have the sheriff's sale date postponed for 60 days. I was glad to be able to help my client and move forward with the short sale.