Seller came to me to list his FHA short sale, and he was already 6 months behind in payments at that time -- this past April. FHA Approval to Participate was completed by seller, and the bank performed an appraisal about 2 weeks ago.
But when I called Wells a few days ago regarding the ATP and appraisal, they said the home will be auctioned June 5, 2013 and that the short sale is now denied due to the seller being so far behind in his mortgage payments.
Is there anything I can do for my client at this point in time, or is this short sale attempt now truly dead?
Sorry to hear that you are having issues with Wells, they sometimes misinterpret FHA guidelines as I have dealt with this myself. If an ATP was issued it should be good through a certain date, usually 120 days after the issue date. Do you know when it was issued? I suggest that you begin escalating the file immediately, that is always the first step I take because most reps in the short sale departments can be misinformed or confused. I have various HUD contacts that my company uses when the lender is not complying. Often our contacts have overturned what the servicer has told us.
When all else fails we reach out to our attorney to have them review what options the clients have to postpone the sale without having to go the bankruptcy route. At worst case scenario bankruptcy at least is their true trump card. If there is anyway that you can't get anywhere with Wells Fargo it sounds like its attorney time.
If you have any additional questions you can give me call, my direct line is 888-558-5856 and if I am not available to answer please leave me a voicemail and I will get back to you ASAP.
Bascially, everything "crossed in the mail" so-to-speak. Seller was in the process of getting the ATP, but did not receivie it yet. Wells knew of the upcoming auction date, yet still ordered their own appraisal. By the time they were; perhaps (assumingly) days from issueing the ATP, the property reaches its auction date. I knew all of this would be close and thought that since Wells ordered and paid for anappraisal, they would behappy to postpone theauction, but they did not.
On another note, this is a first time where I saw a property goto auction, rather thanjust going in foreclosure under a trustee sale. There are no court records regarding the auction, other than what's posted on the trustee's website. And I know how auctions go... they want a minimum of $20,000 deposit, but I know it didn't sell -- the owner's orioginal locks ate still on the doors too.
Anyway, thanks for your input - much appreciated.