Why would Wells issue an approval letter with no deficiency release? Letter states $0 promissory, $0 due at closing but no release. Active military relocated to permanent duty over 100 miles away He has stayed current on mortgage. Rank prevents him from  going late and possibly prevent further advance.

Thanks in advance

Frank Helderle

St. Louis, MO.

Views: 190

Replies to This Discussion

Kevin - any insight to why a waiver of deficiency is not included in the short sale approval?

It depends on the investor as to what the language will be in the approval letter. Do you know who the investor is? Chad

Frank who is the investor in the mortage?

We were just advised from Wells to contact the VA Administrator. Anyone have that information.
Below is our response from Wells

Hi Frank and Laurie,

Here is a follow up email just received:

Hello,



But as I stated earlier if your goal is to have the approval letter changed I can save you a lot of time by telling you that isn’t going to happen the discrepancy disclaimer is there to inform the seller that at any time they can collect on that debt what the letter states is “In some cases you may be

required to pay this remaining balance at or after the short sale closing”

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Frank, VA does not include deficiency waiver language in their approval letters. They typically will not pursue the borrower, but do allow for the option if they find fraud or misrepresentation in the file. In all of the VA Approvals (somewhere around 90 VA Approvals) we have received over the years, we have NEVER had any issues with the Servicer or VA pursuing the deficiency. IF the VA is requiring a contribution, they would have included that information in your approval letter. It appears the Borrower will NOT have to make any contributions to the transaction. Chad

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