I was told by Wells Fargo that my seller must be 31 days past due in order for them to consider a short sale.  Does anyone have any experience with this?

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Linda - Some government short sales have that stipulation, but they don't always abide by that, for example, VA Compromise Sales.  Is this just a general question you asked the negotiator or about a specific short sale you have in the works?  

First of all, thank you for responding.  It is so nice to know we have a place to go for answers to things we haven't come up against yet.


I have a seller who has their loan with Wells Fargo.  When I called to get the number to fax the Auth. for Rel., I asked them if I needed to use Equator.  I just did one with WF that didn't go through equator and we closed - no problem.  In that conversation, I found out that I have to use Equator and that if it is an FHA loan, which it is, that sometimes the investors require you to be at a minimum of 31 days late. 


After reading through some responses on other threads, I see checked further into this and realized that I have Mtg. ins. that is Hud Risk Based.  It just keeps getting better. 

here are the general guidelines for an FHA short sale. Hope this helps

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Linda, I closed one with WF that was FHA , and it went very smoothly. Then we started by paper and it transitioned to Equator (so may have changed now).  Yes, they had to be past due.  Good luck!

 

Thank you all for your taking time out of your busy day to assist me.  And a special thank you to Michael for taking the time to download the links.  This was very helpful. 

All FHA pre-foreclosure sales (short sales) must be on loans that are minimum 31 days delinquent. That's a HUD guideline, Wells Fargo is just advising you of that. It's not their call.

Linda, I had one earlier this year with Wells Fargo recently that had to be 45 days past due because the investor behind the loan had that requirement.  We did successfully close it after re-submitting the file 45 days later.  I've had others that didn't require them to be late.  Just ask up front for clarification based on the specific investor's guidelines. 

Good luck!

Michelle

 

Thank you Michelle.  I am moving forward with this. Your feedback is very much appreciated.

I have received an ATP from Wells Fargo where the buyer was current, however they told me they wouldn't review the offer until the borrower was 31 days delinquent.  Technically that's incorrect, the HUD guidelines only state the borrower must be 31 days delinquent at closing.  You could escalate to HUD, or just wait a few weeks.  Probably both options will take the same amount of time.

Thank you Nathan.  You input is very helpful.

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