Wells Fargo Won't Endorse Insurance Claim Check As AGREED To! HELP!

Real Estate Agent with Reliant Realty, Murfreesboro

I hope that someone here has a contact for Wells Fargo or some advise on how to proceed!  An offer was submitted on a Wells Fargo FHA short sale in November.  The home was damaged by a major hail storm after the home was appraised and listed as an approved short sale.  The current seller has homeowners insurance.  Part of the offer was the condition that the roof be replaced per insurance company allowance with the buyer paying for the seller's deductible.


The offer was accepted by the seller, Wells Fargo and approved by HUD.  The insurance company inspected the roof and agreed it needed to be replaced and issued a check payable to Wells and the seller.  


We are ready to close…except Wells Fargo will NOT endorse the insurance claims check so the roof can be replaced.  I am depending on the listing agent who has told me he has been attempting to get Wells to endorse this check since early December!!  


We will have no choice but to give up and purchase another home if this is not resolved within the next week.  The home would then go to foreclosure since the sellers are way past the date for the FHA pre foreclosure deadline.  It seems absolutely ridiculous that even Wells Fargo accepted the offer and everything is a go but because of their constantly passing the buck and not knowing "who" would be the right person to approve or endorse the check that this home may be foreclosed on.   


I appreciate all comments and help!!

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home search

Please visit:  SOLDONTN &  SherriWellborn.com 

Sherri Wellborn, Keller Williams Realty

Reliant Realty

640 Broadmor Blvd
Murfreesboro, TN 37129

615-566-3789 CELL

615-225-9600 Office

Comments (6)

Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Colorado Broker / Referral Services

Sherri, these situations are NOT easy to work.  I have had a few, but not with Wells, but BOA.  It is NO picnic to work it out.  When you have this take place, the listing broker needs to get the check to the "Loss Draft Dept" at Wells Fargo, and that is who they will communicate with.  If foreclosure notice has been given on this property, a second dept will have to be communicated with, either internally by Wells or the listing broker, and that is their foreclosure dept.

The work has to be done.... I was fortunate enough to have a roofer that worked the job and got it done, got his billiing and estimations in order, with the supporting docs of the insurance company, and then provide that information to the right dept at Wells.(Loss draft dept).

The work needed to be done for the buyer to get the loan to close.  It took me over 6-8 months to recover the payment to the contractor (roofer) to satisfy their efforts.

We closed on the property, 4 months before I was able to collect all funds to pay the contractor.  My recommendation to the listing broker is GET the job done, now.  Find a roofer that has resources that can wait for 4-6 months to get reimbursed. 

Good luck,

Feb 12, 2012 07:34 AM
Jean Hanley
Coldwell Banker Kivett Teeters - Hemet, CA
Specializing in Folks Who Want To Buy/Sell Homes

What the hell are these banks thinking, anyway?  They KNOW that a foreclosure is going to be very costly.  Sometimes I just shake my head in disbelief.  I will keep my ears peeled in case I hear of something that will help you.  Good luck,. i sure hope it works out for you.

Feb 12, 2012 09:36 AM
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

Dan's response is probably the best, maybe only solution. The listing agent also should be able to track the check number through WF Accounts Reiceivable.

Feb 12, 2012 10:00 AM
Michael Thornton
RadnorLake Video - Nashville, TN
Nashville Area - Photography & Videography

Good afternoon, Sherri. It has been awhile since I have seen you here in the rain. Good to see you back...

Feb 14, 2012 06:56 AM
Greg Roover
Claim Concepts, Inc. - Jupiter, FL

In their mortgage doc's with Wells Fargo it should state what will happen in the event of a loss and it should even talk about if they are behind on the mtg.  In every situation that I have been involved with as a Public Adjuster my clients have been able to recover any money that they actually spent on the repairs.  As the other response indicated the work will need to be done for them to release the money.  I recommend negotiating this all with the bank prior to sending them the check and getting it in writting how it will be handled.


Apr 01, 2012 11:40 PM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Sunny San Diego

Jul 19, 2012 11:52 PM