Wachovia Short Sale problems/guidance

Hello all,

I put an offer on a short sale in MA on Feb 9th. I am the buyer. My agent told me via the listing agent that the asking price had been pre-approved by the bank. We offered about 7% below asking. The sellers quickly signed off on the offer and it was forwarded to the bank for approval. For a while, we did not hear anything. On Feb 22nd we heard from the listing agent that a loan processor had been assigned but that additional documents were needed from the seller (specifically court documents but no detail was given). The listing agent said that they had been provided and that we should be moving forward. That was the last we heard from them. My agent contacted them today and we were told that she contacted Wachovia last week and was told that no decision had been made and to call back in a few weeks. I see online that Wachovia seems to have a great reputation when it comes to quickly processing short sales. We are approaching 50 days since our offer was signed by the buyers and forwarded to Wachovia and have not received much encouraging news. Does this story raise any red flags with anyone? Should I be doing anything more or is this a typical timeframe? Any additional info would be helpful. I read about these 7-10 day fast track short sales from Wachovia and I wonder what circumstances are different with this house and if there is anything I can do to expedite things.

I was told they were involved in something like bankruptcy proceedings, but I specifically asked and they said it was not bankruptcy proceedings, just something minor like that...sounded odd but I didnt push it because this was what my agent was telling me that the selling agent told him. It was presented as though it was a minor thing and was basically resolved. The selling agent has told us that she just called Wachovia and they said that they had not made a decision and to call back in a few weeks, which is what does not make sense to me given all the great feedback wachovia seems to be getting online about their overall shortsale process.

Juan Reyes said:

Jeffrey,

I had a short sale with Wachovia approved in less than a week. I submitted a complete shot sale package along with a CMA of the neighborhood. The buyers ended up walking away at home inspection, but we were able to receive another offer within days. The offer was lower than what Wachovia had originally approved, but they gave me no problems substituting the new offer and issuing a new approval letter.

Do you know what the seller's situation is that would require court involvement? (Divorce, bankruptcy) if so, then perhaps the delay is at the courthouse and not with Wachovia.

Replies

Kate October 18, 2010 at 12:45pm

Hi Jeffrey,

Just wondering what ever happened. Did they accept your offer? I just made an offer on a wachovia short sale at 94.6% of appraised value and am wondering what their policy is on accepting offers at less than market value.

Thanks!
Len McGuirk April 15, 2010 at 8:24pm

I love working with Wachovia on short sales! I have had them approve short sales in less than a week. What I think is odd with them is that they never even asked for financials. They just wanted the purchase contract and HUD-1. Awesome!
Jeffrey March 30, 2010 at 6:23am

I was told they were involved in something like bankruptcy proceedings, but I specifically asked and they said it was not bankruptcy proceedings, just something minor like that...sounded odd but I didnt push it because this was what my agent was telling me that the selling agent told him. It was presented as though it was a minor thing and was basically resolved. The selling agent has told us that she just called Wachovia and they said that they had not made a decision and to call back in a few weeks, which is what does not make sense to me given all the great feedback wachovia seems to be getting online about their overall shortsale process.

Juan Reyes said:
Jeffrey,

I had a short sale with Wachovia approved in less than a week. I submitted a complete shot sale package along with a CMA of the neighborhood. The buyers ended up walking away at home inspection, but we were able to receive another offer within days. The offer was lower than what Wachovia had originally approved, but they gave me no problems substituting the new offer and issuing a new approval letter.

Do you know what the seller's situation is that would require court involvement? (Divorce, bankruptcy) if so, then perhaps the delay is at the courthouse and not with Wachovia.
Juan Reyes March 29, 2010 at 4:39pm

Jeffrey,

I had a short sale with Wachovia approved in less than a week. I submitted a complete shot sale package along with a CMA of the neighborhood. The buyers ended up walking away at home inspection, but we were able to receive another offer within days. The offer was lower than what Wachovia had originally approved, but they gave me no problems substituting the new offer and issuing a new approval letter.

Do you know what the seller's situation is that would require court involvement? (Divorce, bankruptcy) if so, then perhaps the delay is at the courthouse and not with Wachovia.
Bryant Tutas March 29, 2010 at 1:15pm

Makes sense. Hopefully it will get approved at the contract price. Keep pushing the agents.
Jeffrey March 29, 2010 at 11:16am

Hi Byant,

No it was not out of line, but the price was just the asking price and because the home had cesspools and the condition of them was unknown to the owner, I felt that I was not comfortable at asking price.

Bryant Tutas said:
Hi Jeffrey, Wachovia is certainly one of the better lenders to deal with. If they had already agreed on the price then why go in lower? I'm sure this has caused them to start the process all over. Was the asking price out of line with market conditions?
Bryant Tutas March 29, 2010 at 10:07am

Hi Jeffrey, Wachovia is certainly one of the better lenders to deal with. If they had already agreed on the price then why go in lower? I'm sure this has caused them to start the process all over. Was the asking price out of line with market conditions?

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