Wells Fargo Won't Put One Of The Sellers Name on Approval Letter
All 3 owners documents were submitted to Wells Fargo and now that we are at approval stage this issue comes up. I have now obtained copies of the mortgage and the note and all 3 parties signed both.
The loan was sold a few times over the years so something obviously got messed up somewhere along the way. Wells Fargo told me to just have the title company that is closing it have the 3rd party sign the closing documents.
All 3 sellers are on the deed, the mortgage and the note so I firmly believe I need all 3 on the short sale approval letter. Has anyone ran into anything similar to this???
Replies to This Discussion
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Permalink Reply by Kevin - Greenville, SC on
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Does the Title Company and/or Attorney have issue with it?
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Permalink Reply by Terry McCarley on
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Yes, the title company told me since all 3 are on the note all 3 need to be on approval letter. If the 3rd owner is not on the letter he wouldn't have written proof of debt forgiveness.
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Permalink Reply by Jeff Payne on
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I would find another title company.
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I am concerned because I want to be 100% sure all 3 sellers are protected.
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Permalink Reply by Terri Barrow on
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I agree Terry, I would be concerned too. I would email the Note, Mortgage and Deed over to the short sale lender and ask them again to revise the letter as all 3 sellers are obligated to pay the loan. Keep us updated, I would be interested to see how this works out for you!
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Thanks Terri. I have asked the negotiator to upload a task in Equator so I can send her the documents but so far no luck. If I don't succeed with that I'm going to call regardless of how much they want everything done thru Equator.
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What does this have to do with title company giving clear title? The title companies job is to research the title and to issue clear title and title insurance. Are they saying that the title is not insurable because all of the sellers are not on the approval letter?
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No - the title company agrees that this leaves the third party open to liability for the loan while releasing the other 2. If the third party wasn't on the note we would be fine but he is indeed on the note.
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Title insurance? How would title insurance leave anyone liable for a loan? Your title company is mixing apples and oranges. Find a new title company that understands short sales. I just sent a message to my title company and they concur that if the lender is agreeing to the short sale and they can issue clear title this is not a title issue, it is a legal issue between the lender and borrower.
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Title insurance has nothing to do with your sellers being protected from the ramifications of a short sale. Title insurance is to insure that there are no past title issues. As long as all three that are on title sign and agree and sign the closing paperwork, that is all the title company has to worry about.
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I understand the title insurance role in this. Our fear is it leaves the third party open to liability as he is not named in the short sale approval letter. The title company I use totally understands short sales and this has nothing to do with them issuing clear title. We just all agree all 3 parties should be on the approval letter. I will advise the sellers to speak with a real estate attorney regarding this if Wells Fargo won't add the third seller to the letter.
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