Wells Fargo Short Sale

Jgrossman · #1 09-05-2008, 10:15 PM

I have a short sale I am working on now where Wells Fargo holds the second mortgage and it is a HELOC. I am looking for someone with specific experience with WF regarding if they will write off the amount owing or do they require the owner to repay the remainder of the loan. I spoke with my loss mitigator today and she told me that my client would be on the hook for the remainder of the loan unpaid by the short sale. I asked her what the credit effect would be if the seller choose to keep paying for the loan after the SS occured. She said it would be reported as a charge off and my client would still owe the remainder of the balance. So my basic question to anyone out there is. Is this WF's policy or are they blowing smoke. I live in oregon and we are a non debt forgiveness state. So if any of you have specific experience I would love to hear about it.

Joshua Grossman,Broker
Gobend Realty
Bend Or 97702
541-788-4017

shenriquez · #2 09-05-2008, 10:24 PM

the information that you were given is absolutely inacurrate. I have closed several WF Short Sales, including w/ Helocs where they have taken huge losses, without requiring a promissory note. WF will always try and get promisorry note, just tell them the property will foreclose and that your client may have to file bankruptcy and they should accept whatever you are offering, or get nothing. It is our jobs to fight for our clients!

IllinoisShortSaleExpert · #3 09-06-2008, 06:24 AM

I totally agree with the last post! Seems WF always tries to get more money out of you in some way, shape or form. Negotiate! Be nice, but firm. They tried on my last deal to get us to do a short payoff..we did..but it was for $3,000.00 zero interest for 5 years and they were owed $57,000. So as long as the Closing Manager thought he was winning by getting us to pay something..he was happy.

TAB3133 · #4 09-24-2008, 01:29 PM

I've also learned that the bank(s) don't "have to" file a "charge off" on their credit ... if during the final negotiations with your Loss Mitigator / underwriter tell him or her ... note: don't ask ... tell him or her to make sure that they will note on the seller's credit "Debt paid as agreed" Whether your a debt forgiveness state or not this should work and help the seller be able to utilize their credit even sooner.

It's true ... the banks wouldn't sell if they didn't agree to take a lesser payment for the property, true? "Debt paid as agreed".

Hope this helps.