Minnesota has a six month redemption period after the foreclosure sale. Today I was sent the following email:
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One of my title companies just confirmed this too!
From Elizabeth:
Hot off the Press: Just in from a Wells Fargo "Loan Adjuster Specialist" about short sales with Wells Fargo. This makes it even more challenging but ... knowledge is power.
Due to recent industry changes, we at Wells Fargo will no longer be granting any extensions for short sale close dates or postponing foreclosure/trustee sale dates. If you were issued an extension letter dated 9/14 or earlier, those extension letters will be honored, but no further extensions will be granted. Files must close by expiration date on the original approval letter or they will be removed. If your approval expires 9/15 or 9/16, you will have 48 hours to get me the final HUD for approval and close.
I'm sorry to be the bearer of yet another short sale hurdle. We need to be aware in order to keep deals from exploding.
”The issue appears to be linked to the State’s (not just MN) Attorney Generals trying to get banks to pay up for the Robo-signing issue. Many are skittish of selling a property before the redemption period is completed because they may be challenged in court to produce the actual documents establishing a legal right to foreclose. There was a big piece on 60 Minutes Sunday showing how big the problem is with falsified documents.
There is no easy or quick resolve. Federally chartered banks come under the regulatory arm of the Office of the Comptroller of the Currency (OCC). The problem situations are with national banks. Not with state chartered banks, Credit Unions or Savings and Loans.
Wish there was a fix available. I forwarded the attachment stating the bank position to NAR so they would have more tools, but they are not confident anything will happen until the Robo-signing situation is resolved.”
I'm in MN too. I didn't know of this for selling. I had heard that Wells would not LEND on the purchase of a home in redemption but this is significant news.
Keep in ind we can file a affidavit to delay the sheriff's sale by 5 months in return for a five week redemption period. It looks like we'll be doing a lot more of this now. In most counties you need to file the affidavit a couple weeks before the sheriff's sale since they don't have the ability to file it in the system a day or two before the sale date.
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