NEW RULES beginning in 2011
I attended a WCR meeting on Monday and the 3 "top guys" from BofA, Chase and Wachovia/Wells were there to discuss short sales and what's coming.
They said, starting in 2011, there will be NO postponements of Trustee Sales and NO extensions of closings on Short Sale Approvals past teh approval date. They all want to clean out the inventory as quickly as possible. All of the have put procedures into place to speed-up SS approvals. Wachovia has cut the paperwork to 13 pages, will send a representative with agents to meet with the seller and will provide an approval within 14 days. They are also paying 6% commission PLUS a 1% bonus if the transaction closes by February 28, 2011. That's in place right now, (at least in CA).
All three companies gave a few "nuggets" to take away.
- Don't call them the "Lender" - they WERE the lender when they made the loan, but once the borrower went into default, they became "Debt Settlement Companies" on the loan. This adds a new perspective for the seller who thinks they can stay in the property forever without paying.
- They are NOT paying attorney fees (to attorneys who have been hired by the borrower to fight the foreclosure). If it shows up on the HUD, it will be removed and will become the borrower's responsibility.
- They are NOT paying a 3rd party negotiator fee if it is in addition to a commission already being paid to the Listing Agent. The position is a Listing Agent assumed the responsibility to negotiate the short sale when they took the listing and if they are incapable or just don't want to, then the Listing Agent needs to pay for it out of the Listing-Side commission.
- All three companies are willing to work with REALTORS who truly have their client and the investor's best interest in mind. They do have issues when the same agent/broker is on both sides of the transaction or, if the submitted offer is ridiculously low-balled and has not been countered for "Best and Final".
100% of my business for the past 3 years has been short sales (with the exception of 1 transaction which was the sale of a client's house who bought a short sale. - I almost didn't know how to handle a standard sale - LOL).
Just my .02
Replies to This Discussion
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Permalink Reply by Jeff Payne on
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good stuff Thom, I too was at a Meeting a week ago today with Wells, Fannie, BofA and Citi. As far as extensions and postponements, it is not 100% NEVER but it is going to be hard to get them postponed. You are correct that they want to clean out the system with the old files and want to be more proactive with the new files....
Thanks for adding this to the site!
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Permalink Reply by Bryant Tutas on
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I have no issues with any of these guidelines EXCEPT... no extensions. Bottom line is we need 45 days to get a deal a closed if the buyer is getting financing. And even then shit happens. I just received an approval yesterday from Chase. Good until 30 November! What am I supposed to do with that? That's 6 business days. And it splits a holiday.
Lenders"Debt Settlement Companies" need to give us 45 days to close. And be willing to grant an automatic 10 day extension.
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Permalink Reply by Rosemary Brooks on
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Thank you for this information. I recently attended a Wells Fargo Executive Panel discussion and they are all saying pretty much the same. Although I will agree with Jeff that they did not say "never". They said they are putting a lid on that process and it will be the exception if a postponement is granted.
This is where I see there is going to be a problem. I mean unless they figure out how to really get a decision for the SS request to you right away... they are going to run out of time either way you look at it. If you talk to them, their timeframe on how long it takes to do a short .... they usually will over the time the homeowner has to either Short Sale or just let it go to foreclosure. And from what I am hearing they do not want to go to foreclosure - right?
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Permalink Reply by John Treadwell on
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Well someone let me know if the "representative with agents to meet with the seller" works out .They came here to Nevada some months ago witht eh same stuff and numbers and e-mails where to call for help ,was all false stuff the Rep. is there ,but they have move him to the sales dept. ,and out of the 3 times i ask for him all I got was a excuse why he couldn't help. Wells Fargo is dragging there feet on every deal now . One Neg. has ask for the same paperwork over 3 times. She trying to get more time ,but I just send it again and again. Now I have not heard from her in 2 weeks Monday well be going on 3th week i was promised a letter to close with??? Wells Fargo is not playing fair at all anymore
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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John -
This IS working. Wachovia / World Savings (now handled by Wells but still using the Wachovia brand) are meeting with sellers and their agents. They are only requiring 13 pages of documents which includes the Purchase Agreement..... (not like others looking for 140 - 150 pages). They are approving them (if there is a true financial hardship) and closing within 30 days. Wachovia is also offering incentives to Listing Agents equal to a 1% Bonus if closed by February 28, 2011 on top of a 6% commission.
Best,
Thom
John Treadwell said:Well someone let me know if the "representative with agents to meet with the seller" works out .They came here to Nevada some months ago witht eh same stuff and numbers and e-mails where to call for help ,was all false stuff the Rep. is there ,but they have move him to the sales dept. ,and out of the 3 times i ask for him all I got was a excuse why he couldn't help. Wells Fargo is dragging there feet on every deal now . One Neg. has ask for the same paperwork over 3 times. She trying to get more time ,but I just send it again and again. Now I have not heard from her in 2 weeks Monday well be going on 3th week i was promised a letter to close with??? Wells Fargo is not playing fair at all anymore
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