Does Wells Fargo in fact not accept Promissory Notes for the difference between the VA acceptable sales price and the actual sales price on a short sale offer? I asked Wells Fargo for that option Friday and the loss mit said Wells Fargo doesn't do that like some 'other' bankers. It's not that far apart on the offer and what Wells Fargo wants, but, the Seller is all out of time. Foreclosure is this Tuesday, Oct 7th. And, yes, the VA appraisal is about $8K too high but Wells Fargo isn't going to accept a BPO that shows why.

See if you can get your buyer to come up a little bit or see it the seller can come up with $500 to put towards it. Maybe offering a little more will help. I have done this with other loans not VA.

I know the reason Wells Fargo is holding out on getting the 88% of appraised value is that they know they can give the house to VA and collect the guaranteed amount. So, why should they take a hit on loosing any money when they can let VA deal with it? Excellent question and one I would have thought the 'brains' in Washington would have been addressing.
Right now the buyer is thinking about whether he wants to go up $8K to get this house rather than take an alternative house. The only thing going for me right now is that his wife loves this house.....
The clock is about to run out and I wanted to be sure I had not missed an opportunity to put this together. Is there any motivation for Wells Fargo to take back paper on this offer rather than giving it back to VA?