Wells Fargo (ASC) Won't Do Short Sale b/c file is Charged Off.....

I have a file with Wells Fargo (ASC) that was going along relatively smoothly.  BPO done, offer price pre-approved, was send to investor for approval.  I was expecting an approval letter any day when I got an email today saying:  "The file is charged off and we are unable to complete a short sale." 

Has anybody had experience with this kind of situation.  Even with the file being a "charge off" the house will still need to be sold either by a foreclosure or through a short sale.  Why wouldn't the bank want to accept a payoff at this point?  How can I get around this to get the file approved and complete the deal for my homeowner??  Any advice/insight would be very much appreciated.

Thanks in advance,

CJ

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Ask Chase who it was sold to... then negotiate with the new company..

I currently have a short sale with Green Tree/GMAC that was charged off.  At least with them it was sent to their collections department which is a separate department and you have to negotiate with the collections folks for the short.  They call it the Recovery Department so I'd find out if they have one and if not, find out who does their collections for them.

Ask Wells Fargo if they need an unpaid balance statement in order to proceed. I am working one as we speak and Wells Fargo needed an unpaid balance statement (as the 2nd lienholder) from their own bankruptcy dept, but I had to call to obtain it. 800-241-0039.

WF is the 1st, charged off to ASC, and no 2nd lienholder?

I recently obtained 1st/2nd approval for a short sale with a similar situation. The 2nd was charged off from Chase to ASC, then back to Chase, then to another 3rd party. It was a nightmare. Wells Fargo might be having trouble with that one, too. Do you know if it was originally with Wachovia? I am working one now that is with Wells Fargo, and Wachovia before them. They have a special department for these, called "R1" files. It's worth asking them. Try to pry something from them as to where to go next. There has to be something they can tell you.

Thanks for all of your replies. 

So I followed up with my negotiator to see where I should go next.  She told me that they had released the lien as a result of the charge off and the homeowner now owns the property free and clear!!  Pretty crazy.  Working on getting written evidence of the lien release right now.  Very odd and unexpected result, but very cool.

That's awesome for the homeowner...but does that mean you don't get paid?


There has got to be a better system than this one we have in place.

Good job :-)

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