Wells Fargo New Approval Letter does not provide a waiver of deficiency!!! Has anyone had this issue recently??!!!

Just received an approval from Wells Fargo it seems they now have new verbiage which states, "With the exception of a Home Affordable Alternative (HAFA) closing, nothing in this Demand Statement or in the release of the mortgage shall waive the right to seek a deficiency under the loan documents or any of its other rights there under, and the obligations evidenced by the note shall remain in full force and effect until paid in full."

 

Seller refuses to close unless we obtain a "FULL WAIVER OF DEFICIENCY"!!!  I called the Final Negotiator and requested such, however, she told me this is the new language and not her nor her supervisor or anyone else for that matter can change this verbiage;  WF legal department is aware of this.  Is there anything that can be done????????????HELP!!!!!!!!!!!!!!!!!!!!!!!!  In the meantime we have an approval but the seller will not proceed!!!!

 

Any suggestions will be greatly apprecaited!

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Permalink Reply by Melissa Taylor on May 24, 2012 at 1:35pm

I am currently residing in Texas trying to SS our house in NV. We moved 6 weeks ago. The house is a Fannie Mae and the lender has flat out refused to offer a waiver. Colonial Savings, in Fort Worth Texas.


We offered a cash contribution that they have not even responded to. We have had to move 2000 miles to keep one of us employed (DH was laid off after 20 years and my company was sold to a TX corp. that offered me a job if I would move, we did) so now we are trying to sell our former home and pay rent in Texas. We have a buyer and an approval letter but no waiver. The recourse in NV is 6 years, that is a long time to wonder "what if" 

I don't know if it matters but we are not behind in the payments, we have kept all the payments current through all the processes the lender has asked us to apply for.  HAMP we don't qualify with my husbands unemployment we make too much money (there was some % of mortgage to income but I don't remember what it was) and since we didn't qualify for that, HAFA was not an option at all per our lender. 

We have an appt. with our NV attorney on Tuesday but this whole thing is keeping me awake at night.

Any thoughts, insight, ideas etc?  

Permalink Reply by Sean Guthrie on June 29, 2012 at 11:46am

Yes, I have the same thing happening with two ASC  deals and they will not change the language. 

Permalink Reply by Ken Ryan on July 1, 2012 at 5:16am

Remember, Wells Fargo cannot refuse to include waiver of deficiency if the investor is HUD - FHA or VA, Freddie Mac or Fannie Mae.

Permalink Reply by Sean Guthrie on July 1, 2012 at 6:57am

Wells/ASC is still refusing to wavie the DEFICIENCY on everything at the moment??? Something about Wells Managemrnt and Freddie not seeing eye to eye.....

Permalink Reply by Sean Guthrie on July 1, 2012 at 7:23am

Good read below regarding Wells/ASC DEFICIENCY Wavier!!

http://forsalephoenixhomes.com/featured/wells-fargo-now-refusing-to.../

Permalink Reply by Steve Norris on July 5, 2012 at 12:52pm

I just reviewed Freddie Mac Bulletins through 2012-13, dated June 13 and can find no change in the policy of waiving deficiency stated in 2012-5. I'll be getting an approval letter some time next week (we're going back and forth on price and terms now); anyone have any updates to Wells' position on this?

Permalink Reply by LISA VAUGHAN on July 5, 2012 at 2:11pm

I have attached the bulletin that addresses the requirement to waive deficiency

Attachments:
Permalink Reply by Joanne Finochio on July 6, 2012 at 4:33am

Lisa, How can I get updated Bulletin's from Freddie Mac?

Permalink Reply by Ken Ryan on July 6, 2012 at 4:43am

Joanne - here is the link to the web site for all Freddie Mac servicer bulletins. Hope this helps.

http://www.freddiemac.com/sell/guide/bulletins/

Permalink Reply by B Gerber on July 9, 2012 at 5:48am

Hey Lisa,

I got this response back from my law firms negotiator. Please tell me if you have any advice or next steps I should take.

 

I received our "non-approval letter" from Ocwen this morning.  And I called in to clarify and confirm the reason for the decline.  The max allowed for junior liens is $6,000.  Because there is also an HOA amount due of $580.00, it exceeded the max of $6,000.  If we would resubmit a revised HUD reflecting $5,420. to the 2nd and $580. to the HOA, it would be approved.

But, the more important thing I confirmed this morning is that there will be no extra contribution allowed at closing, unless Ocwen was to receive it.  So, since the 2nd/ASC will not accept $6,000. and will only accept the full $15,000. to be paid at closing and not a partial payment beforehand, as Bret had hoped, this will not work.

I will ask the 2nd /ASC once more regarding Ocwen's final decision.  Only if ASC will accept $6,000. at closing will this work for us.

Once I know more regarding ASC's decision, I will contact you

Permalink Reply by LISA VAUGHAN on July 9, 2012 at 6:00am

I would revise the HUD to get the 1st lien approval letter and then work on the 2nd,  ASC / Wells Fargo.  Send the approval letter from Ocwen to Wells Fargo.  Until you have something in writing that the first lien has agreed to short sale, the 2nd will keep dancing trying to get more.  AND then there is the deficiency issue.....

Permalink Reply by Sam on July 9, 2012 at 6:10am

Are you in a Super Lien State?  If so, the HOA would be a sr lien, not jr lien, correct?  If you are not in a super lien state, then you should be able to negotiate a discounted payoff to the HOA.  Also, I have always been able to get the lenders to approve HOA fees from buyer, seller, agent or a combination if they do not allow from sales proceeds.

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