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.

 

Thanks!

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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.

 

Lenders generally want an arms-length transaction, no side agreements to sell the home back to the owner. I had one with Wells Fargo where they had buyer, seller and agent sign a form verifying it. Also my commission was cut to  3% to represent both sides.

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.

 

Steele

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".

 

Reference: http://www.nareb.com/Data/News/Attachments/News_86wellsfargo-short-...

 

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.

 

Interesting if they don't like this as their REO department will usually look to a tenant as the first person to offer the property to.

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.

As long as they are not related that is fully acceptable.
Plus, how would Wells Fargo know if the person submitting the offer is the renter? That isn't disclosed anywhere. They are not a friend, neighbor or family member and they are not in a business relationship to somehow have the home go back to the Short Selling owner.
The renter's address would be the same as the property address being purchased.

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).  

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