If you are processing a short sale listing with Wells Fargo as the first lienholder, then consider using the following guide to work the transaction more smoothly:
Make sure you receive the following forms from your Wells Fargo negotiator or loss mitigation representative: Short Sale Listing Addendum, Short Sale Contract Addendum, Affidavit of Arms Length Transaction form, and the Closing Date Extension form.
Non-members can access these forms by viewing the Lender & Government Forms e-Guide.
- Along with all other standard documents you would include with a short sale package (sales contract, seller's financial documents, etc.), save yourself weeks of time by including the above-mentioned forms in your first fax to Wells Fargo at the beginning of the process.
- These are not your standard listing or short sale addendums you may be using in your respective states or brokerages; these are Wells Fargo letterheaded documents, however.
- Make sure ALL parties sign on the appropriate pages and all other information is filled in appropriately.
Many agents do not hear about these forms until the file has already been submitted. They fax an incomplete package, call Wells Fargo a few days later, and find out the packet is incomplete. Wells Fargo has to send them the paperwork and the agent has to coordinate a paper-signing frenzy between the seller, the buyer, and the selling agent. After they send the packet back to Wells Fargo, and call back a few days later to confirm they received it, a week or more of precious time has passed. Time kills short sale deals!
Access ALL Bank and Government Forms here.
We oftentimes make the mistake of painting an unbecoming and unfair portrait of the lender as we process short sales. As much as it pains me to say, they're not always the reason why short sales take a long time to close. Imagine how many incomplete short sale packages Wells Fargo receives on a daily basis. Hundreds, maybe?
Now imagine the looks on their faces when they receive a short sale package with each one of their short sale contract and listing addenda, fully signed in an organized fashion. By getting it right the first time, you make a lasting first impression and let the bank know how serious you are about getting this deal completed expeditiously.
Your first impression matters when you consider the significant role short sales will play for real estate agents in years to come. At SSAA, we've heard estimates as high as 50 percent of all home sales within the next year will be short sales! That means it is likely you will work with the same negotiators at Wells Fargo--or any other lenders--multiple times in a given year. It's nice to call someone I already know at the bank while I'm processing a short sale; they know that they can expect an organized short sale package with all of their required documentation the first time from my office every time. Conversely, I am treated in the same respect and can close deals more quickly because of the standards I have set.
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