Waiver of Rights & Protections Afforded Under the Service Members Civil Relief Act
Here's a a rather shocking Wells Fargo development. Circumstances are an active duty military member with PCS orders (already gone). Agent submits final HUD to Wells for approval.... approval already issued, buyer and seller have signed, pending recording 3 days. Wells sends the attached letter and waiver in response to request for final HUD approval and says the HUD will not be approved or can the sale record until the seller signs this waiver. Message states it's a "new" requirement.
Has anyone seen this one?
- Attachments:
Replies to This Discussion
-
Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
-
Call the Congressperson where the Active Duty Seller's Property is located. Explain the situation. I understand Congresspeople now have "special contacts" at the Servicers for situations like this and they can actually get things done.
Best of luck,
-
-
Permalink Reply by Jim McCormack on
-
I don't think this is abnormal. The SCRA law prohibits creditors from taking action to collect a debt during a service member's active duty for a period of time. Since a short sale is a debt collection action the short sale cannot be closed out until the service member waives their rights under the act. I would just have the seller review the waiver and make sure it applies to the short sale only and is not a general waiver that would allow Wells Fargo to decline the short sale HUD approval and then foreclose.
-
-
Permalink Reply by Pattie Johnson on
-
Hi - thanks for your input Jim.
-
-
Permalink Reply by Jerry A Cook on
-
As a former 'Title Insurance' person in charge of processing 'tens of thousands' of foreclosures and guaranteeing their validity as to the 'soldiers and sailors' relief act, it is very real to have the bank request this, with the limiting language contained in the document. Before this document, all that is agreed to is the seller wants to sell, (short) and buyer wants to buyer and the bank has nothing that says the seller 'while under pressure of military service' was not preoccupied and did not fully explore his/her options, before allowing the completion of the short sale.
This form tidies up that question nicely, and should probably be addressed earlier in the transaction, but I'm sure the processor was just made aware of this, due to some litiagtion that some bank somewhere just LOST!
The Title companies should require a copy of this document be included in their file, or an exclusion to same be in the policy.
Good luck and breath, it just a few more steps to take till payday!!
-
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons