Has anyone done a Wells Fargo short sale and the Seller was current on their mortgage?
Yes, I've closed a number of short sales with Wells where the borrower had remained current until the end. It will come down to the policies of the actual investor that owns the loan though. Some will allow it, some won't.
You can try just asking them up-front if they will allow it, but aren't likely to always get a straight answer.
Worst case is that you get to the tail end of the negotiations and then they refuse it due to the borrower being current and thus demonstrating their ability to continue making the mortgage payments. If so, your client will need to make the decision to stop making their payments. Most investors that require delinquency are usually satisfied at the 60-day mark. Once that's been reached, simply resubmit the package and repeat the process and there shouldn't be an issue getting it approved.
The caveat is that this does add a few months to the process. The more buy-in you can get from all parties (buyer/seller/agents) at the onset, the better your chances of keeping them all on board until you can get it completed.
Hope that helps.
You need to find out who the Investor is on the loan but generally speaking, the bank will not REQUIRE a Seller to miss payments.
If you shoot me an email I can give you my number and explain - [email protected]
Never ever advised a client to stop making payments. Just have to have a hardship documented and keep excalting
Yes. Surprisingly. It worked for a handful of non-delinquent sellers I represented. In fact, just fyi, a HAFA does not require delinquency, and if there is no delinquency, there is nothing negative that is allowed to be placed on a credit report such as paid in full for less than agreed. It must show paid in full.
The last Wells Fargo short sale I closed for a non-delinquent seller was because the person was retiring and moving out of the area, and her home was underwater. She remained current and it was approved. If the investor had been Fannie Mae or Freddie Mac, that would not have worked.
Will this also work with an FHA loan? We JUST started the process to get the ATP (approval to participate) in a Short Sale with Wells and the specialist DID mention that because we are not delinquent it would be a bit harder to navigate since we are current and demonstrate ability to pay. We submitted all the documentation which clearly outlines the hardship to MAINTAIN this current.