WF new and improved Demand Statement 'Approval Letter"

Just received the new and improved WF Demand Statement 'Approval Letter' which clearly states that:

'nothing in this Demand Statement or in the release of the note shall waive the right to seek a deficiency under the loan documents or any of its other rights thereunder, and the obligations evidenced by the note shall remain in full force and effect until paid off.'

The letter starts off with Re: Demand Statement for Loan # xxxx

This seems to be a trend as other agents recently received the same new and improved letter. We need to group and solve as - Why would any homeowner short sale if this is the outcome? Why would any agent list a WF file? (Yes, 1099 was requested numerous times before the 'approval'.)

Any help or advice is greatly appreciated and will be reciprocated...ty all.

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Comment by Patti Guilford on September 5, 2013 at 12:38pm

Update - it was changed within and week and closed a few weeks later.

Comment by Patti Guilford on June 21, 2012 at 3:30pm

Just in:

Patti,
There is no exception to the Deficiency verbiage in our approval letters at this time. We are required to preserve our investor’s rights to pursue deficiency on our investor service portfolio. This has always been the case. We have recently expanded our approval letter verbiage regarding deficiency to meet new National Servicing Standards regulated by the federal government. Hundreds of files are closed every month with the same wording. Please let us know if the seller would like to proceed as approved or be removed from the short sale process. In regards to the 1099c question, please refer the seller to a tax specialist or legal advisor for review as we are not tax experts and state laws may differ from state to state. Thank you.
Comment by Patti Guilford on June 21, 2012 at 1:48pm

From Jason:

@Patti Guilford - Only way around is if the loan is Fannie, Freddie, or FHA -- been working on the same issue for 3 weeks and here was the end result. I got this email today!
I certainly understand and respect your diligence in representing your client. The approval letters that you reference are a result of recent changes to the National Servicing Standards and the Homeowner Bill of Rights. One piece of this dictates that approval letters are required to be more specific in regard to the investors ability to pursue deficiency.
There are different letters depending on the Investor and/or portfolio type.

For example, a lender that services their own loan and agrees to waive deficiency may utilize the approval letter that waives that deficiency, when applicable. For loans that are serviced for others (ie..private investors), the servicer may be required to issue the approval letter that leaves the option open to pursue deficiency at the investor’s discretion. See link below.

I appreciate your time and efforts. Please advise if the seller will proceed with closing. Thank you.

http://www.nationalmortgagesettlement.com/

Timothy A. Williams
Wells Fargo Home Mortgage Liquidations
Wells Fargo Home Mortgage | One Home Campus | Des Moines, IA 50328
MAC#X2301-03R

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