I've been having trouble with Wells Fargo's stance on Jr. Liens and PFS.  If you are having similar problems with PFS because they require Jr. Lien holder to provide a written lien release before receiving an offer/HUD.

I sent an email to the Board of Directors at Well Fargo stating "Well’s policies for handling PFS with secondary liens significantly reduces the FHA’s opportunity to provide this loss-mitigation alternative to eligible borrower. It also creates a Fair Lending concern for possible disparate treatment, as similarly situated borrowers could receive different offers." I received a call back within a few days from Greg Duncan with the President's office (direct phone:  515-324-5941, fax 866-972-6026).  I told him that this is a systemic problem affecting many people trying to do shorts with Wells.  The more people who contact them about this the better, maybe they will change.

The email addess for the board is:  [email protected]

Here is a copy of the letter I sent.  Let's make them take notice!!!  Please feel free to copy and use this letter to send to Wells.

I am writing in regards to Wells Fargo's apparent policy of requiring written release of the Jr.lien holder prior to admitting qualified borrowers/sellers into the PFS program which oversees FHA short sales.  The intent of PFS is to avoid foreclosures, but Wells Fargo's policy signifigantly restricts the PFS option for sellers with a second mortgage.
 
It is in everyone's best interest to facilitate the discharge of secondary liens.  With more and more foreclosures occuring and the added expense they add to the process, it seems illogical not to better cooperate with the Jr.Lien holders.  Why is Wells Fargo taking this stance and being so difficult when it comes to moving the short sale process forward?
 
I am having this issue get in the way of a successful short sale with loan xxxxxxxx.  Litton Loans holds the Jr. lien and is willing to settle for $2500 (over $40,000 loan) but can't sign a lien release prior to receiving a written offer.  Wells is requiring a written release prior to receiving a written offer.  Other banks do not require this and it allows many more short sales to go through.
 
I hope you will do something to stop this practice that only hurts consumers and Wells Fargo.