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Permalink Reply by Jeff Payne on April 21, 2011 at 4:24am

Typically I have seen Wells ask for the second to approve first but never have I had them refuse to open the file.  Push past the front lines and escalate the file ASAP.  You should be able to find escaltion contacts in both the Wells Fargo and the Greentree groups here.  I have had Greentree as the second approve the short sale before the first, recently

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Permalink Reply by Cami Pinsak on April 21, 2011 at 7:32am

Is this a HAFA short sale?  I have had this issue on every HAFA short sale. 

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Permalink Reply by Michael Schneider on April 24, 2011 at 11:03am

I've been in this position with Wells as Servicer for the FHA 1st and Citi as 2nd.  Each conditioned their approval on approval from the other.  Then, they basically act as thought their don't see a problem with this.  Wells btw does not treat there own 2nd in this fashion, just a not-on-us 2nd.

I think that the 1st, Wells, is being unreasonable.  They should go first.

I escalated up-the-line within compliance claiming that this was a potential fair-lending violation, becuase similarly situated borrowers could receive disparate treatment, potentially with a demographic overlay.  Eg, two Wells 1st, treated differently because one has a Wells 2nd, one does not.  Or, one has a 2nd, one does not.  One gets denied, one gets assistance.

I was able to get someone in compliance to help us get this unstuck.  I'm not sure that the fair-lending argument was strong, but I was able to get Wells to go first.

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Permalink Reply by Tanya Reese on April 24, 2011 at 11:53pm

This is an FHA with Wells servicing the 1st, Greentree has the 2nd.  You are exactly correct, they act as if there is nothing wrong with the situation.  This matter has been taken to FHA who has verified that Wells could offer up the ATP without approving the sale.  In turn, the ATP goes to Greentree and we can attempt to negoiate with them.  (another rats nest completely).  Once there is an agreement with Greentree, the whole matter goes back to Wells for final approval.  The catch is, its taken us 60 days so far and not sure how much longer the buyer will hold out.  This is the 3rd attempt to short sale this property in the last year and both earlier attempts have ended the same way with the buyer walking away before we can get anything done.  Wells has refused to even open a short sale file until there is a lien release from the second so the collection calls have continued at the rate of 3-4 times per day, even when the homeowner agrees to speak with them. 

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Permalink Reply by Michael Schneider on April 25, 2011 at 3:16am

Tanya,

The reason this comes up is because the FHA requires that the 1st have "reasonable belief that the 2nd will releae".  And, Wells interprets "reasonable belief" as "has already happened".  Unreasonable of Wells, but maybe they have been dinged by HUD audits in the past.

The ATP is for the sellers, only, does not need a buyer to be active.  If you get the ATP, you are good for 120 days, if you need to get another buyer.

FHA will offer up to $2,500, but any other party can made additional payments.

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