I'll try to make this long,ugly story short. Have a Wells portfolio 1st and Citi 2nd. We get a great offer. Wells wants to do a HAFA SS (sellers turned down for a mod . . .another ugly story)
So we get it approved with $6K to Citi and $3K relo allowance. Citi insists on $15 (6% of balance) Buyer is willing to put up the $$. I ask my negotiator at Wells is this is OK, it was my first HAFA deal and she replied "Yes, I will instruct escrow how to show on HUD". Then a week later I have a new person assigned to the file and I asked her that I was waiting on the new approval letter with the $9K from buyer. She informs me that that cannot happen on a HAFA short sale and we will have to start over as a traditional short sale. So more time goes by and I get a proposal from another negotiator that has only $3K going to Citi, no $3K moving allowance and they want a cash contribution from the seller of $8700. How completely screwed up is that. I get the underwriting criteria is different . . . but in the sellers mind this is just Wells Fargo screwing up again. I emailed my negotiator 1/25 asking if they would allow $9K from buyer and $3K from our commission but no $$ from seller, they don't have it. I called today and my negotiator is out until monday. The trustee sale is set for 2/10 and Wells has already said no postponement. They will not give me the contact info for a supervisor. Help . . . who can I call to get some answers??
I feel your pain as these things are ALWAYS a moving target. I can tell you however that in the end, Wells Fargo is one of the better lenders to deal with. They are generally consistent in their process, though clearly not in the case you've shared.
The good news is that if you stay on them about postponing the trustee's sale, they will likely approve that. Also, look at the emails you have from them as many times they have a supervisor contact below their signature/title info. CC'ing that person can help many times. Additionally, calling and asking to speak to a supervisor is sometimes granted. Good luck and if that doesn't work, come back to us again and I'll see about getting you a direct contact. :)
no, no, no - something is all wrong. Did Wells agreed to the their net on the HUD? If so, then it is not their business how much & from where goes to any junior lien. The buyer 'has the right' to contribute $x to the seller's closing costs and/or lien releases. (it should be a special clause in the contract)
The first negotiator understood what was going on and that it is totally permissible under HAFA guidelines - I've done it more than once. The second negotiator may not have come across this circumstance and is telling you NO rather than learn how to handle it. (e.g. taking the easy way out)
did you already email email@example.com ? Did you contact the Office of John Stumpf?
Gee whiz - I just put one WF HAFA in the pipeline - I hope I don't run into this. Let us know how you do.
So Wendy, just so I understand you correctly, under a HAFA short sale the buyer can contribute to the lien release, in excess of the $6000 offered? The first negotiator said yes, the second no (and she apparently asked more than one person). I will email the address you gave me and see if I can get some help. Also, do you have John Stump's contact info?
Thanks for the help! I pride myself in being a decent agent/negotiator for my clients but this transaction has just about done us in. (They spent 6 months getting jerked around with the loan mod people . . . now this)
yes, I haven't done a buyer contribution with WF but I did Chase, BoA & there's at least another one but Lord I can't remember the others without going thru the files. Once the sale closes, the details blur :-)
Believe or not John Stumpf's info can be found with a Google search - all of the CEO & CFO's etc can be found with Google. Then it's a matter getting on the phone with lots of tenacity.
I'm dong a BoA HAFA with Deafult Servicing as the HAFA vendor which is a nightmare - I'm having a bit of trouble finding the top of the totem pole at Default Servicing - just mentioning it in case anybody has had to go beyond supervisor level... I could use a contact or two
Julie~I have discovered that it is somewhat incumbent upon us to learn as much as we can about the guidelines because you cannot, unfortunately, depend upon the negotiator to know them.
The fact that the 2nd lien holder MUST agree to accept no more than the 6% allowed is one of the major tenets (and, in my humble opinion, one of the major shortfalls) of the HAFA program.
Wendy, your experiences are interesting to me. Where are you seeing that HAFA guidelines indicate this is permissible?
Hi Wendy - is it possible for you to update the buyer contribution on a HAFA deal with your experience in 2011?
As Andrew said - these deals are moving targets and we need to know if this is still a possibility. Thanks much and Happy New Year!!!