Wells Fargo refuses to allow judgement payment
Long story short:
- Wells Fargo approved a short sale.
- 'Husband and Wife' are the mortgagors. Because of health concerns and age, they added 'daughter' to the deed.
- Husband, wife and daughter have been on all written contracts, approvals and prelim HUDs throughout the process.
- Right before closing, attorney discovers a judgement lien (which they originally MISSED) on the daughter which is attached to the property.
- I resubmit the prelim HUD showing a payoff on the judgement
- WF replies that since the daughter is not a mortgagor (but she IS on the deed), they will not allow the payment.
- This is a HAFA SS.
- Buyer won't pay. Seller does not have any money.
- Any ideas on how to clear this judgement?
My only idea is to have daughter Quitclaim her interest back to her parents, but I am not sure if this will 'un-attach'.
Replies to This Discussion
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Permalink Reply by Drew Ludlow on
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I already queried the closing attorney and she said that a QC deed would not work. Once attached, it will remain attached. Doesn't make sense to me, but I do not have a JD.
Wells Fargo closer said that since the judgement is against a non-mortgagor on title, HAFA guidelines will not permit it to be paid either by the $3k incentive nor out of acceptable closing costs.
She was emphatic that the sellers could not pay, but thrice, she did not answer the question whether any other party could contribute.
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Permalink Reply by Tammie Verlinger on
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The closing attorney could make a request to the creditor as to issuing a Release "as to the property only", leaving the debt still applicable to the daughter, but removing the Judgment against the property. Sometimes they will agree to this for a fee, which varies, but it's worth trying.
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