I have a FHA short sale with WFB. The Approval to Participate ran out on Feb 3, 2012. When the approval expired, I was told by WFB to continue to market and send in any offer that we received. On 5/14/12 we got an offer for less than the approved amount, which I sent in. The home went to Sheriff's Sale on 5/16/12 and the redemption period runs out on 11/16/12. Could not get the sale postponed due to the it being less than 10 days prior. Was informed that the file could not be reviewed because the offer did not meet investor's minimum amount. WFB is telling me that I need an offer for the amount that the was established 10 months prior.
My question is: "How long is the initial investor valuation of the property good for, especially since we never got an offer in the 6 months that the home was marketed under the participation agreement. This offer is the only offer that has been presented in a year of marketing. The home has suffered deterioration from frozen pipes and vandalism over the last 4 months. How do I get FHA to realize that the home is no longer worth what they initially established?
They definitely need to order a new appraisal. The FHA PreForeclosure SS guidelines specifically state that the appraisal is good for only 6 months. You need to escalate this file.
I asked to escalate and was told that there is no escalation option at this point since it did not meet investor guidelines.
Can you show solid reasoning why or how the market has changed since their last valuation? I would take that approach. It isn't merely that your offer isn't good enough - it is that the market has changed and that is why your offer is not meeting their investor guidelines. And THAT is why they need to re-valuate.
I don't think it would be good enough for them simply to re-valuate because the BPO has run out. I think you have to convince them that the market is different.
Is WFB Wells Fargo? In my experience Wells Fargo will order a new FHA Appraisal every 4 months.
If you've tried everything you can with the servicer and they are not working with you, contact the FHA National Servicing Center at 877-622-8525. Although the NSC will speak with a 3rd party (after authorization has been faxed), I have found faster results if the borrower contacts them instead.
I just closed a WFB FHA short sale last week......its was a doozie! It was 'saved' from foreclosure twice, once on the DAY OF the sale.......it had 2 valuations ordered, as the first was WAY out of line......the filehandler was subpar at best....VERY slow to respond. I finally contacted every Wells person I could and slammed the process verbally (something I rarely do)....suddenly the paperwork started moving again......after written approval was granted, I received TWO extensions to close......it can happen, it does happen, it will happen....you just gotta make alot of noise to be heard.....BTW, the sellers received their seller incentive also!!