Wells Fargo approval letter question, assistance needed!
Hello, I received an approval letter from Wells with "and waive any deficiency rights if applicable" after the credit bureau reporting portion.
New approval letter on another deal today says "nothing in this Demand Statement or in the release of the mortgage shall waive the right to seek deficiency under the loan documents or any of it's rights thereunder, and the obligations evidenced by the note shall remain in full force and effect until paid in full"
Negotiator says they can't use the older letter, (I received it 9/16/11) and they are using this new language(received it 10/13/11) Negotiator says can resend back to negotiator to get investor to approve waiver of deficiency but would need new approval and 10% cash at closing of balance.
Has anyone received the previous format within the last week? The seller is contributing $1200 to the closing in good faith, and I was surprised by the "new" approval letter.
Thank you for your assistance.
Brian
Replies to This Discussion
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Permalink Reply by joe beauchamp on
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Negotiators and servicers play games all the time. Also, much of this stuff is up to the investor, not the servicer (bank). You want to know who the investor is and keep track of what they do, not necessarily WF. For instance, FNMA CEO is on youtube video stating that they will not go after the debt for any completed short sale. If your investor is FNMA, then someone is playing fast and loose demand 10% for nothing (regardless of your bank being BOA or WF or xxx).
2nd, I have never had a seller contribute without getting a release of debt. Maybe because mine really need the short sale and aren't swimming in cash, but w/o release of debt, I certainly wouldn't bring a penny to closing. I put it on the preliminary HUD-1 and in any counter - like seller contribution $1200 for release of debt.
And think about that 10%. What does FNMA allow the 2nd to have? No more than 6% up to $6K. And, gee, these people who work on FNMA loans all the time think you are special so in a like position you can give 4% more?
A ton of this is negotiation for everything/anything and you may have some real walls with the investor, however, it looks to me that you are getting the standard lines and need to find where your real barriers are..
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Permalink Reply by Neil L. on
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Brian, did you get anywhere with this? I posted a similar question here today: http://shortsalesuperstars.com/group/wellsfargoshortsales/forum/top...
Also, when you say 10% do you mean 10% of the sales price?
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