Comment

Comment by Jim Stewart on April 8, 2011 at 4:48am

The saga continues... I am trying to do an FHA short sale with WFC. WFC has been servicing the loan for the last year but the assignment of the loan was never done from the mortgage broker who originated the loan.  Because of that WFC will not start a FHA short sale but they aren't doing anything to resolve the title issue either.  The broker who originated the loan won't do anything and says WFC has to do it (which makes no sense to me).  The short sale department says they can't help me and sends me to customer service.  Customer service says they can't help and says I must send a fax to the "Written Correspondence Team".  Three weeks after sending the request I have never received a reply of any kind.  I call customer service again and they have no clue and try to send me back to the short sale department. I tell them I've already been there and they can't help me.  So they transfer me to someone "who absolutly can help".  Turns out it's the "Assumptions Department"... as in the department that handles when you assume somebody else's loan, NOT Assignments.  They say I must go back to customer service.  They transfer me back to customer service and after re-inputing the account number and last four of borrowers social I get this "We're sorry, we cannot continue processing your call. Please hang up".  Then... click.  The line goes dead.  Does anybody have some kind of escalation or supervisor number I can call?? I've been dealing with this for three months now and have zero movement to show for it.

Comment by Barbara J. Rice on April 7, 2011 at 4:44am

It's possible they have a FMac nego on-site, so it may have investor involvement. WF almost always counters back to the BPO value (why wouldn't they?). This is an "opening salvo" and whether you can get it past it is up to you and the Nego. Do you know if the contribution request is coming form WF or MI? If it's WF you should be able to negotiate with the Nego. If it's MI you may have to go to them directly.

As far as cutting escrow fees, I've only ever had them cut the fluff. If these are hard and fast fees from escrow, WF will have to pay them.

Good luck!

Comment by Barbara Thomas on April 7, 2011 at 4:01am

Need some guidance from you savvy WF short salers!  :)

Short sale just assigned to the "final" Negotiator at WF yesterday and already received a counter offer this morning. Investor is Freddie Mac. Negotiator is saying everything is required by the investor -- however, this couldn't possibly have already gone to the investor given the short time frame, right?

BPO came in a t $225K. Negotiator is countering from $216,300 to $225; requesting either $5K cash contribution or $10K promissory note.  Will contribute to 2nd lien, but not the 3rd lien (total up to $3,000). And cut the escrow company's settlement fee from $1500 to $500.

Should I just consider this to be an "opening salvo" -- or do we potentially have some room here?

Thanks so much in advance!

Comment by Laura Rivera on April 5, 2011 at 12:49pm

Hello Dave, Thank you for posting that letter to Wells Fargo HELOC. They are trying to do the same to me. But before we even got to that, buyer walked. But, I know that I will still have to deal with them. And please allow me to use that letter. Thanks.

Comment by Thom Colby CA Brkr 888-391-5245 on April 5, 2011 at 11:13am

Hi Dave -

 

I think you found the key to why it was reduced aka "Double-end".

 

The Listing Agreement (with Commission Agreement) is between you and the Seller - not with the Lender (in this case, Wells).  Since Wells is only approving the amount of "loss" they are willing to accept, it is likely they are recovering some of their loss by stipulating they will not allow more than 4% to be taken from their proceeds therefore reducing the loss even more <since you are on both sides>.  So, ask Wells what their bottom line is and see if you can work to that amount.  Don't be surprised if Wells tells you to get the 2% difference from the person who signed your Listing Agreement.

 

Best of Luck,

 

Thom Colby

Broker

Newport Beach CA

Comment by Dave Gubler on April 5, 2011 at 10:41am

Well, we are double-ending it so I suspect that has something to do with it.  Using the following letter (which I think I received from someone here on SSS:

 

To Whom It May Concern:

 

This letter has been written in direct response to the request by Wells Fargo Home Equity to reduce the real estate broker’s commission in this short sale transaction from 6% to 4%.  This has been presented by Wells Fargo Home Equity as a condition that must be met for this sale transaction to proceed further.

 

In response to this request for a reduction in real estate commissions we feel it is important that you fully understand the real estate services being provided, the ramifications of the request and our interpretation of the law surrounding the request.

 

As a real estate broker age specializing in short sales, we cannot stress enough the additional work and expenses required by these types of transactions.  We have significant investment in our education, resources, and staff that support short sale mitigation and we simply cannot afford to offer these services at a discount.  It seems unreasonable that a lender would intend to punish the real estate broker by reducing compensation for assisting in a transaction that requires greater than normal vigor. Why would Wells Fargo Home Equity set out to lessen the interest of the real estate broker assisting in a short sale that is sure to yield a better outcome for all parties than a foreclosure sale?

 

In addition to our business concerns, we are also concerned about the legal ramifications of Wells Fargo Home Equity’s request to reduce our commissions.  Specifically, we are greatly concerned about any condition that will lessen another party’s benefit in the transaction only for the possible benefit of a third party.  If this is in fact what is occurring, whether intended or not, it could be construed as a violation of Section 8(b) of RESPA which provides:

 

“No person shall give, and no person shall accept any portion, split, or percentage of any charge mad or received for rendering real estate settlement service in conjunction with a transaction involving a federally related mortgage loan other than for services actually performed.”

 

It certainly seems that there would be a violation of Section 8 of RESPA were the real estate broker to give, and the bank to receive a “percentage” of the “charge” (commission) for their respective involvement in settling a real estate service in conjunction with a federally related mortgage loan, since the bank did not perform any of the real estate agent’s functions in the transaction.

In summation, it seems neither  fair, nor reasonable, for Wells Fargo Home Equity to take a position that will force an unwarranted concession upon the real estate broker.  We therefore request that this condition of the short sale approval be removed and this short sale transaction be allowed to proceed.  As it is a goal of this real estate brokerage to ensure proper compensation for itself, it’s counterparts and for the real estate community in general, we would further welcome any further discussion of this matter that may yield an abandonment of this practice by Wells Fargo Home Equity in the future.

 

Comment by Kevin - Greenville, SC on April 5, 2011 at 7:33am

Dave, They told me that too and I received 6%.  Keep pushing back.

Comment by Dave Gubler on April 5, 2011 at 7:26am

Disputing commissions with Wells Fargo 2nd (Wells Fargo Home Equity Solutions).  They have stipulated 4%.  Escalating to supervisor (working with Brian Homan) by the name of Levi  Cahill.  Also sending a letter to Executive Resolutions (Office of the President) disputing the legality of cutting commision (this has worked before).  This is an asset loan wholly owned by WF.

 

Any other suggestions?  What is working lately with Wells Fargo? 

Comment by Laura Rivera on March 31, 2011 at 1:56pm

My client was current when I listed her home. Her DTI is over 50% of her income and has a valid hardship. We found a buyer right away and submitted the SS package to Wells Fargo. In 2 weeks we had an answer. Not a favorable one. Wells Fargo said to my seller, "You have not missed a payment and you are not on imminent default, therefore, your short sale is not approved". With this said, my seller stopped paying as she does not have any more people to borrow money from (so she can be current). We lost that buyer and her house is still on the market for sale, 3 months later.

If anybody else had a different experience, I would like to know

Comment by Brigitte Powell on March 31, 2011 at 1:55pm

Yes, am doing one now with WF (a VA)

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