I am the selling agent for my son on a WF short sale. Under contract 6/21/13, 8/15 told file in line to be reviewed by negotiator, 8/22 appraisal ordered (which came in $2000 over our offer), 9/26 negotiator assigned,10/4 LA receives email saying HUD has come out with a new mortgagee letter. File will be assigned to a different processor so new HUD guidelines can be followed (FYI new guidelines came out 7/9/13 & mandatory 10/1/13), 10/10 the original (not new)processor has file and says short sale approved but still has some processing to do within negotiation dept will hear something in a couple days, 10/16 appraisal update ordered, 10/23 homeowner receives notice of foreclosure, 10/31, toda,y original processor calls homeowner and asks her if she would like to do a short sale on her property!! File still with negotiator we think??? Any help would be appreciated. I would love to help my son buy this home.
FHA is the slowest at WF and BofA. The shutdown didn't help and the 10/1 change didn't either. HUD expects to net 88% of the appraised value, so if your HUD-1 doesn't hit that, you have a problem. Also, the new rules add a BPO to the appraisal, which they seem to have called an update. With both WF and BofA, the listing agent has to stay on them every minute to push them to do their jobs. I spend a fair amount of time deciding if their delays are because they are doing something or they are just working on other files. Hard to tell because FHA is very slow. I don't think this is due to HUD, I think it is WF and BofA happy to take their time.
Files will move to other "specialists" due to internal things, so that means nothing except a reminder to get on the new guy's back to work on the file. Calls or letters to the seller are usual and asynchronous - different departments are blindly doing and sending things frequently. (Did he want to do a DIL? Is he interested in a loan mod, etc.) The seller has to be careful about a response of any kind. It can derail the sale.
Foreclosure runs on its own clock for legal reasons - politicians have made delays by the bank expensive, so banks have to march ahead regardless of promised sales contracts. Here in NJ, that can be a 2 to 4 yr or more process. Basically, don't worry about it.
HUD can be helpful if you find WF is doing something wrong or creating extraordinary delays, but FHA delays are huge, so don't get antsy if you only lost a week.
Until you run into a wall, like they don't like the buyer for some reason or some such, you are OK so long as you keep pushing for them to do their jobs. If something is out of line, like seller has utilities off, if WF comes back saying it is unacceptable, tell them to get a variance from HUD. That is how FHA deals with "problems", HUD has to OK it, and they OK a lot of things.
I assume it is the listing agent that is handling the short sale. Has he/she tried to escalate the matter with HUD?
My experience with WF on shorts sales (I have done several) - it will be transferred to a "new" negotiator 3 to 4 times - each negotiator will start from scratch to verify the paperwork even though the previous negotiator had already done that, each negotiator will ask for something new that wasn't required by the last negotiator. You will need to make sure all financials, etc are not more than 60 days old (bank statements, pay stubs, etc) Once you have your final negotiator it will then go to a processor, once the processor receives it then sometime withn 30 to 40 days you will get your approval letter. My advice, after I have submitted the contract, etc I call after 48 hours to verify that they received it even though it s done through Equator, then I start calling weekly for another 30 days, after that I start calling on Mon and Fri and try to get a supervisor. If it's FHA, go to their website and submit for escalation. Each short sale I have done with WF has taken 3 1/2 to 4 months to get written approval. If you have been waiting longer than that then someone isn't doing their job - I hope the listing agent is experienced! And lastly - DO NOT ever verbally abuse any of these employess at WF - you will get more cooperative assistance if you plead, beg or cry! I have done all three!
My concern is the arms length requirement. I've done a raft of short sales with Wells, and they're usually pretty hardline about the agents not being related to EITHER of the principals. Not to be a buzzkill, but that could be a problem down the road.
Just had similar situation last month. FHA let it go to Trustee Sale. Went to the sale and purchased it w/ specific power of attorney and cashiers check for very same Buyers. Actually got it for $11K LESS!! Wouldn't have recommend this in any other situation but we already had the Preliminary Title Report and the Inspections completed. Even got Owners Title Insurance on it once we received the Deed.
Pamela thanks for the reply. The Seller gave up in December after the bank asked for all the documents again. The reason they gave was that they did not know that one of the homeowners was still living in the home (the other is in a nursing home). They knew this from day one as they told her not to move out. Anyway the home went to the courthouse steps the following month. I attended but they asked for the total amount owed. It has been a month and the home still hasn't come on the market. We are actively searching for another home.