Wells Fargo New Foreclosure Postponement Guidelines for Short Sales

Well....after all of the hoopla from last month's report that Wells Fargo will no longer postpone foreclosures on short sales, NAR reports that they've been in meetings with Wells (and several other large lenders) to address concerns regarding their short sale processes and REO disposition processes. Now, Wells is reporting that they WILL allow one (1) foreclosure postponement on a short sale if the following conditions are met...

1) Wells Fargo has an APPROVED short sale contract in hand (including all junior liens approvals as well).

2) Buyer's financing has been APPROVED or Buyer has POF

3) Closing can occur within 30 days of the scheduled foreclosure date

Of course, this raises questions regarding whether or not they will postpone foreclosures while THEY'RE in the process of approving the offer or if they'll just turn a blind eye and proceed with the foreclosure. PLUS..this "new" policy is only in affect for mortgages actually owned by Wells Fargo or acquired through their acquisition of Wachovia...AND, not to mention, Wells Fargo has advised that they are willing to address each transaction on a "case by case" basis. So what does this mean??? Absolutely nothing to us who are in the trenches on a daily basis negotiating and facilitating short sale transactions. It means that we will have to diligently continue to escalate, beg, plead, offer our first born, or whatever it takes to save a homeowner from foreclosure. It is my earnest prayer that the banks realize that our national economy rests largely upon the housing industry AND preventing foreclosures is a viable solution in getting the housing sector back on track by 1) preventing neighborhood blight, 2) mitigating further losses to property values, and 3) encouraging a more positive outlook in homeownership.

Realistically speaking, we exist in a microcosm in which Middle America and Corporate America MUST work together...when will we finally realize that our national economic stability relies upon our ability to play in the sandbox together?

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Comment by Vanessa Calhoun on November 26, 2010 at 4:58pm
Absolutely!
Comment by Joseph C. Alfe on November 26, 2010 at 11:40am
This is "too little too late"

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