Just recently I had a short sale where I was the buyers agent and there was a short sale approval and they even got an extension but the property sold in foreclosure.
In my opininion, Wells Fargo's RIGHT HAND(short sale dept) didn't know what the LEFT HAND(foreclosure dept) was doing. The short sale was approved by the short sale department and the foreclosure department still sold it.
Furthermore, I looked at court records and found that one of the Wells Fargo Attys tried to stop the sale but checked the wrong box. They checked the box that said they were in loss mitigation not the box where there is a contract on the property in short sale process.
Wells Fargo received much less money than they could have received on the short sale. This is a huge mistake and the banks are doing this all the time.
I have a couple of questions. If this was a small bank would this happen? I highly doubt it. I wonder if the stock holders of Wells Fargo knew this was happening and would approve ? They know they are too big to fail and just get more money from the government. They can afford to waste it. However, I worked hard on this transaction and won't get a dime.
Any feedback would be greatly appreciated. I wish I could sue Wells Fargo..... Why do the big banks get away with anything they want? I am ticked and this is my therapy to be able to post this. I hope someone out there can give me some advice besides just letting it go...
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Ray, in the situation you described above, I fail to understand how the bank lost money. The short sale option may have been the better option, but not necessarily. By completing a foreclosure process, ownership of the property was merely transferred from the original owner of the property to the bank. The bank still owns the property and who knows, could still fetch a better offer via a foreclosure sale.
Mike,
Thanks for your reply. The property was sold at auction for 102,000. I talked to the investor who bought it. He turned around and put it on the market for 149,000 and it is already pending. The short sale would have given Wells Fargo 126,000. They lost around 20,000 dollars.
I want to tell you about another transaction I had before the foreclosures started going crazy. I had a property sold for 176,000 dollars. Wells Fargo had a prepayment penalty and the seller couldn't come ot the table with 4,000 dollars, so I couldn't do the sale. I saw that property go into foreclosure for 40,000 a year and half later.
I received a message in equator to upload a 90 P&L. I had to send a message for them to send the task which they did and I uploaded the P&L statement. I just received a message in equator an hour ago saying the short sale is declined due to my failure to upload the 90 P&L statement. Over all Wells is difficult.
I just want to reiterate that I was the buyer's agent on this transaction. The bottom line is that the bank lost money on this because they would have received more money from my transaction than the foreclosure. The bank gave two approvals one for the short sale and one for the foreclosure and lost money. Even if it was an investor, why would the investor take less money. Is the bank competent?
I don't know the answer, Ray, but if they didn't waste so much time trying to do loan modifications that rarely work and just get straight to reality, it would save everybody money! I have one now with Wells where the bank spent over 4 months working on a loan modification that got them a $2 per month reduction on a $4000 loan.......! What was that Wells?! All the government programs are a waste of time as well and they need to quit complicating everything! Anyway, I'm sorry for ranting and for what you and all the parties involved had to go through.
To Ray Brokke-Sorry to hear your Short Sale went to forclosure.
I now call the Trustee on every Short Sale and verify the forclosure sale date. I just had a Short Sale that was closing on a Wednesday. I had been calling the Trustee DAILY FOR THE LAST WEEK PRIOR TO CLOSING. The trustee continue to tell me it was going to forclosure on Tuesday, the day before the Short Sale closing. I was also calling the Asset Manager and customer service daily to report what the trustee was telling me. They all continued to repeat to me the forclosure was on hold...the day before the forclosure date nothing had change, the trustee and the bank continued to tell me different stories. On Monday morning I requested an escalation from customer service, I would not take get off the phone until I was promised the legal dept. at Bank of America would call me back and confirm the trustee was contacted. I did receive a called back the legal dept. and then I called the trustee... 3 hours before the sale time and was told the forclosure was on hold. I believe this property would have gone to forclosure if I had not pushed the issue. DO NOT TRUST ANYONE, you must push! The banks legal must request the trustee sale be postponed, if your trustee has not received that information your sale is in trouble.
My experience with Wells was different. I listed a property on 4/12, got multiple offers and accepted one on 4/20. HAFA Short Sale Approved on 5/31 (no deficiency in CA) and closed escrow on 6/28. This was very smooth and the folks at Wells were terrific !
I had three approvals in the last month from other banks and they were smooth. I was the buyers agent on this one and you can see what Wells Fargo did.
I agree my recent experience with Wells Fargo short sale was smooth. I was working with the buyers in this transaction. Wells Fargo was on time with each dead line. It was my buyers lender that was the pain in the transaction. The negotiators for Wells Fargo was ready, will, and able to move forward. We has a acceptance/approval offer in Feb. 2012 and closed in early May 2012. California
I say You need to learn from each of your transactions and let it go.
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