Wells Fargo with Fannie Mae as investor
I find it very funny all the news talking about stalling foreclosures when I can't get short sales extended anymore.
So last week we got a new offer (good, acceptable) on a short sale listing that was scheduled for auction on 10/20. We submitted everything on 10/11. We were told by Wells Fargo that yes, no problem, they'd put in a postponement, etc.
My assistant called on 10/12 were told they had everything and the postponement had been put through to investor.
Called again on 10/13 and was told no answer back yet.
Called on 10/15 again still no answer and were told to call on 10/18.
Called on 10/18 and were told still waiting.
Well today 10/19 called again and were told (several different people/calls)
First, yes still waiting on answer. So we asked if they could notify attorney (who said still time to postpone sale) to advise. They said that they sent in a request through their system to the attorney. The attorney said it needed to go directly to her email to be certain she has enough time to process the postponement so we call back.
Then we are told that it had NOT been put through to investor yet. That they would have needed at least 15 days prior to auction to even consider a postponement but that they'd still put one through.
Spoke with the supervisor at length learning ‘their process’ LMBO. She said it takes 10 days to go through from the investor.
So I then call Fannie Mae, the investor and speak with them. Thinking that if I were the investor I’d want to be certain that the lender was handling everything as they should.
Was told by Fannie Mae that requests for postponements are ALWAYS answered within 72 hours so they were certain that no request was ever put through. They were not willing to give me any info though - that has to come from the servicer, Wells Fargo. The representative also went on to explain that there are MANY circumstances where they will NOT approve a postponement ONE being if the sale date is within 30 days! She said that they do NOT approve “Emergency short sale postponements!” Well there goes that then.
I just can’t understand their mentalities at the banks. Why would you want to take back a property, hold on to it, maintain it, lose money when you have a ready, cash buyer willing to purchase the property NOW? Blows my mind.....
We used to be able to postpone auctions literally up to an hour prior the sale date. This appears to be a thing of the past.
Anyone had success with it lately?
Replies to This Discussion
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Permalink Reply by Karyl Moore on
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Yes, I have had more foreclosures in the last two weeks than I had in the past year. Especially if they're Fannie Mae. You'll see elsewhere that around Oct. 1 Wells Fargo instituted a new policy of NO postponements on foreclosures, even if your short sale is closing a few days after that scheduled date. Makes no sense whatsoever. We are just not privy to what's going on in the minds of the bankers - but any reasoning has to do with more money for them, bottom-line.
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Permalink Reply by Steve Early on
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Hi Susan:
Karyl is right. Wells Fargo actually came out with two new "policies" (around mid-September I believe.) The are as follows:
1) If you are fortunate enough to succeed in getting a short sale approved, Wells Fargo will not extend the closing date specified in their Demand Notice (approval letter). So if your buyer's agent gets back to you and says, "My buyer can't close by then" you're not closing. They will cancel out the short sale.
2) If there is an auction date scheduled, you need to get your short sale APPROVED AND CLOSED prior to the auction date or the auction will not be postponed.
Does this sound like a company that "really wants to help people and would prefer to do short sales rather than foreclose"? Personally, I think not and I worry that this mentality is driven by the investors like Fannie Mae and it will spread to other lenders as well. I hope I am wrong. -
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Permalink Reply by Eric on
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I found a link to Fannie Mae Borrower Outreach by googling it.. when I told them what happened - I got a call and email from a very senior person that seemed to be a bit upset when I explained that the short sale offer was CASH and above my BPO value... but Wells kept holding it up think it was part of a bankruptcy - even though the home was an exempted property... it took a month to explain this... I had the buyers convert from FHA to ALL CASH and we got proof of funds to Wells... then the listing and contract were close to being expired so Wells again refused to submit - but it took us DAYS to find out why they would not submit... same day we were told we had new addenda extending listing and purchase contracts... resubmitted... then it was the seller financial docs were not over 60 days... so we went and got those... then it was they needed a new hardship letter... so we went and had them resign the same damn letter and re-date it... submitted that... then it was the short sale would not be submitted because the auction already happened - we explained it was in redemption - they checked - and then told us that it would not be submitted because redemption was over in a week... and no way to approve it by this time... ARRGGHH - so they held up the submission to the investor for over 2 months and killed the deal...
Fannie Mae and Freddie Mac are getting hosed by their servicers...
I lost the deal and a competing REO broker now has the listing - we are resubmitting the offer to him (lower listing price than our offer!).
It sucks that we could not help the seller with the short... and now the investor is losing more as they are paying for excessive management fees and such to RELS and other entities affiliated with Wells Fargo default resolution services...
Personally - I think it looks like Wells and many others are more apt to NOT process a short sale because it will end up lining their pockets more by letting it turn over to their pre-negotiated asset management and reo disposition groups they also own or are affiliate with... thus providing them more revenue than completing a short sale...
I would like to see government investor owned loans handed to someone OTHER than an affiliate of the original or any servicer associated with the loan... then penalize that servicer for not processing negotiated settlements when offered as per the terms of their license to sell the product in the first place - i.e. PULL their ability to sell any more FHA, Fannie or Freddie loans until they figure out how to process sales...
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Permalink Reply by Elva Branson-Lee on
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Wells Fargo has been the most tedious, frustrating lender of any I've dealt with the the past three years of doing short sales. I will probably RUN from the next seller who tells me their loan is with Wells.
The funny thing is, before I took the listing, I asked about them in other short sale forums and heard nothing but encouraging things. Boy, am I disappointed.
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