Wells Fargo Short Sale as a buyer
We submitted our signed offer (by both us and the sellers) to the bank (wells fargo) on Feb. 20th. I was told by my agent, who also happens to be the seller's agent on the short sale property, that the offer finally made it to the negotiators desk on April 8th. Is is realistic to expect to have the short sale letter of approval done by April 30th -- in time for the tax credit? I was told that it would be 10-12 business days from the time the negotiator got the file we should hear from the negotiator to start with the negotiations. Here's some other info. There is a 2nd mortgage with suntrust and the seller has agreed to a promisory note with them but they are still wanting a little something out of the proceeds of the sale...not sure how much so I guess wells and suntrust will have to work that out. We know around how much the appraisal was and our offer is right in that range. We have a contract on our current house now and are set to close within the next month and I'm worried we are going to be homeless!!!! Not sure if it's realistic to expect this to be done by the end of the month. What have been your experience? I've heard wells fargo is pretty quick but so far that does not seem to be our experience. Any info./advice anyone could provide would be great!!!
Replies to This Discussion
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Permalink Reply by Amy Cole on
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We had a short sale as the sellers with wells fargo on the 1st and PNC bank on the 2nd- both purchase money loans and one thing I will say about there being 2 banks involved is that the timeline is likely to be much longer than if there was only 1 lender. And I learned that the 2 banks DO NOT talk and work it out... they don't talk to one another at all - it's the agents and negotiating entities that translate and leave message and call backs etc. For us it took several months for Wells fargo to get the approval in place all lined up etc. - I know it sounds crazy and as it was happening we kept wondering what in the world was taking so long. It ended up being the back and forth thing with the 2 banks- they are not friendly by any means and they do not directly communicate with one another....that delayed it over and over. It nowhere near met the neat guideline timeframe that Wells Fargo sent us in the mail so that we would know what to expect... Then the appraisal timeframe expired and we had to wait for them to get a new one. geez. I hope you have better luck with your experience. I ended up getting involved in the communication process to help speed it along. Luckily my agent was okay with me bugging the Wells Fargo negotiator myself. But I'm the seller so it was easier to do that. dont' think a buyer can do that - But you need to stay on top of the phone calls to the agents,etc.- gotta bug em.. squeaky wheel gets the grease as they say. Our whole process took from July 6th to April 12th.
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Permalink Reply by Pacita C Dimacali on
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Binding --- as in ratified?
Even if the sellers accepted your offer, without the final approval from the lenders, you don't have a fully ratified contract.
UNLESS... you have language in your contract stating that the contract is ratified once you open escrow, or your initial deposit is transferred into an escrow account, etc.
See: http://www.realtor.org/archives/feat1200706
Excerpt:
"Tip: Keep in mind that the purchase contract on a short-sale property is a legally binding agreement once the earnest money has been deposited. Without language in the contract stating that the lenders must approve the offer and release all liens on the property, the seller may face a legal problem for failing to execute the contract if the short sale is not approved, says Hollingsworth. -
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Permalink Reply by Bryant Tutas on
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Jenfiandra. A binding contract is a contract where there has been a meeting of the minds from a competent seller and a competent buyer and there has been consideration (deposit or the promise to exchange something of value for something of value i.e. the sale). So if both you and the seller have signed the contract then you should be good to go.
Of course I am NOT a CPA or an Attorney. Nor do I work for the IRS. Seek advice from a tax professional. -
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