Comment

Comment by Lisa Sipes on September 7, 2011 at 1:46am

I just had a short sale close and the senior lien holder, Bank of America tried to slip an approval letter through that would not waive the deficiency.  The junior lien holder, Wells Fargo, which was a HELOC, had waived the deficiency.   I could not believe that BOA was going to try to pursue my seller's when it was purchase money and in Arizona we have a law that protects the seller if it is a purchase money loan.  The closing was 5 days away, and I had to escalate the file, request a new approval letter and send a letter stating my seller's had no money to contribute to the sale.  It is all about escalation!!!    I have never had any of my seller's had to sign a note, even on a HELOC, all of the banks will settle if you escalate.

Comment by Andrew Sawyer on September 18, 2010 at 11:36am

I dont know how they can do this unless they are giving up on short sales. I dont think it will ever happen. If it does all other bank follow, us as agents will not be doing many short sales anymore. Over half the deals I get the homeowner is less than a month from foreclosure.

Comment by Marsha M. McKinney on September 18, 2010 at 7:38am

I think the whole system is changing. I received this yesterday about Wells Fargo. We are in an ever changing market and that is the truth of it. The source that I received this from is someone who keeps up with the daily market. I would like to know if anyone else has heard this also.

1. Short Sales with Wells Fargo that have a foreclosure date pending in the next 0-10 Days;

· Files will be closed, rejected, returned to agents as declined.

· They are to be removed from Wells Fargo system immediately

· No more delays

· No more foreclosure extensions will be granted







2. Short Sales with foreclosure dates of 11+ Days must be closed in 30 days or Wells Fargo will proceed
to foreclosure
• No more delays

• 45 day approval is no longer on short sales with foreclosure date assigned

• Must have Formal Wells Fargo approval letter, approval from any Jr. Liens, Proof of funds if cash
buyer, and Commitment letter from lender for financed buyer.






3. Short Sales with N0 scheduled foreclosure date

· Continue to work as current process

· Approval provided by Wells Fargo will be 60 days on these.

· However, if foreclosure date is set at any time during negotiating process, closing process moves
to step #2 and time frame immediately reduced to 30 day close or Wells Fargo will Foreclose.

Comment by Andrew Sawyer on September 17, 2010 at 10:40pm

I am doing one with US bank right now and they told me the same thing. They will not negotiate the 2nd. my client will not sign the approval letter. We even offered $10,000 cash and they wouldnt budge. I think US bank is the hardest to deal with on the 2nd.

Comment by Julie Vrigian CSSG, CSSP on September 16, 2010 at 2:05pm

I am not sure about this...Your attorney is the best person to ask, but I don't think it should affect it much, unless you don't pay it.

Comment by Jennifer McNitt on September 16, 2010 at 2:02pm

Does anyone know if a deficency/promissary on your credit report has a negative impact on being able to get a new mortgage in the future?

Comment by Julie Vrigian CSSG, CSSP on September 16, 2010 at 12:10pm

Hi Clay,

That is my understanding as well. There are limits to how long they can file for deficiency, which varies from state to state.

Comment by Julie Vrigian CSSG, CSSP on September 16, 2010 at 12:09pm

One thing that is important is that once they release the lien and have a promissary note to pay back the loan, it becomes unsecured debt.

It is much easier to deal with an unsecured debt. They are more likely to settle for less at that time.

Comment by Jennifer McNitt on September 16, 2010 at 11:01am

Has anyone recently negociated the deficiency on a US Bank 2nd? We're told that they will not even proceed with our file unless we agree to the deficiency. What I would like to know is if we do this, that they potentially will still negociate to lower the deficiency balance.

We're only short on the 2nd and not the first, so if we're paying the full deficiency, how is this even a short sale?

Comment by Marsha M. McKinney on September 16, 2010 at 8:38am

When I stated that we include a form for agreement of no deficiency I did not mean that it works all the time however, we do explain to the seller that he may have to come up with more money to satisfy the second particularly if it is a HELOC and he signed this. The homeowners we deal with are either trying to borrow funds or we do everything we can to negotiate this into the deal. So far this has worked. We have a short sale closing the end of this month and the seller is bringing money to the table on the second but it is going to close. He did not want this "hanging over his head" after closing anymore. He wants to move forward and put this behind him. I hope this makes my earlier comment clearer.

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