Has anyone experienced a WF Short Sale where a tenant in place wants to submit an offer on the property? WF does not allow Business Associate relationships but not sure if they consider lessee/lessor to be Business Associates.
I have had a tenant buy the home at the very last moment. It did work out, however, we had to get attorneys involved. This was a few years ago- so I do not recall all of the full details. But, it can happen from what I know.
Yes- you should never write your own offer... they will do this to you most times. Very frustrating.
No, I don't see how this would fit at all. I go to the same gas station on a regular basis. Am I a business associate? No.
In looking at the Wells Fargo Home Mortgage Realtor Short Sale Guide: "This must be an "arms-length" transaction. The property may not be sold to anyone the seller has a close personal or business relationship with including family, friends or neighbors".
Because there is an existing relationship between the seller and the tenant, I would get clarification from Wells Fargo up front about the current policy above to see if this includes tenant/landlord.
However, what they are looking for is someone who is going to "save" the home and give it back to the seller. If I rent a property out to someone, I do not automatically have a "close personal relationship" with the tenant.
I would call and ask about it...but, I do believe that this scenario is the one they are speaking of above.
I worked with Ernie Dill with Re/MAX BRAVO in VA on a Short Sale last year on a tenant in place who purchased a short sale from the owner. Ernie is the reason it worked! http://activerain.com/erniedill
The tenant rented the home through a property management company, not the owner directly, so this is why it qualified as "arms length". The owner never spoke to the tenant -- they lived in different states and many times, different countries (the owner went back and forth to Afganistan during the course of the transaction).