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Permalink Reply by Kathi on January 31, 2017 at 8:37am

FHA Variance is FHA's approval for the lender to proceed with the short sale process.  I've been working on a short sale with Wells Fargo since Sept.  They rejected two offers, seller got the FC postponed.  3rd offer submitted on 1/17 - WF didn't submit request for variance until 1/20.  Variance was approved on 1/27.  Wells Fargo foreclosed on 1/30 stating they didn't get the variance in enough time..  should the variance be requested by the bank when the short sale starts, or when the bank gets an offer they like?

Permalink Reply by Kathi on February 7, 2017 at 4:19am

Wells Fargo is the one who has to order the variance from FHA - which they did, but I believe they submitted it to late.  I did speak with a specialist at FHA and got a ticket number.  WF submitted the variance request on 1/20.  It was rejected because WF was missing documents.  FHA said WF didn't resubmit until 1/26 and she put a rush on it and WF received the variance on 1/27 ( Friday).  The sale was scheduled for 1/31 (Monday) Wells Fargo had enough time to have their attorneys file a motion to cancel the sale. they did not stop the sale.  It sold at auction but now the seller has filed a motion to vacate the sale. The worst part is, I was working with the corporate office since WF is not well run - had 8 processors in a 4 month period.  Even though docs were faxed, was told they didn't receive them multiple times.

The first two offers were rejected because they were too low.  Third offer matched the banks appraisal.  I'm so mad I am now going to write a letter to the CEO, Timothy Sloan, co-president, Cara Heiden and the board communications and tell them they need to have a better process - One Processor assigned from day one - and they need to be trained in how to read and review documents. WF also need to allow the processor to talk to the customer, rather than just email, where communications get lost or break down.