I'v been working on a short sale with Wells Fargo and today I get an email that stated "we can’t proceed with the current buyer due to the transaction not meeting Wells Fargo standards", but no specific reason as to why. I have closed other deals with this buyer and haven't had a problem. In turn I emailed the negotiator to please explain further and he tell me he can't because it's proprietary information. Has this happened to anyone and if so what steps was taken to get it approved with the buyer?
I've seen this on more than one occassion. You likely won't find out why. They likely feel it's a violation of arms length or something along those lines or maybe WF flagged that buyer. You should ask if switching buyers can resolve it. If you switch buyers and it gets denied again it may be due to the seller?
@ Brett I will see what happens since I have contacted executive office and requested a case be opened.
I had one case like this a long time ago. If they don't release information to you, the Seller may be able to speak to WF to find out why. The only other way, that I recall, is to try and get a rough answer meaning it may not be the real reason but to get an answer that it may fall under (arms length, etc..). It could be anything but at the end of the day. Was there a small difference in your NET and the amount of balance owed? It says transaction not necessarily "buyer". If they denied this buyer and haven't provided an explanation chances are you may run into continuing obstacles with this buyer with any of the WF reps. I don't think this sounds like its Seller related but if so, then WF should provide some form of explanation to you or specifically to the Seller. It could also be that the amount of proceeds is not enough or they feel the transaction, itself, is not beneficial to the Investor. I'd try to get a better explanation if possible but definitely find out what will it take to get another potential buyer or this buyer re-reviewed if that's possible.
@ Helena they are telling me due to proprietary they are unable to give me further explanation as to why. I have contacted executive office and case has been opened. So we will see what happens.
Go up the food chain until someone gives you an answer.
I would also reach out directly to the Investor on the loan and have a discussion with them.
If you email me - [email protected], I can send you my list of contacts for Wells Fargo.
Best of luck!!!
It sounds as if the buyer you are working with is an investor. I have had the same thing happen with Wells Fargo and an investor purchase. I agree with Brett that it is most likely that WF is interpreting this as a violation of Arms Length.
@ Cami the investor has closed other deals with WF we are due to close another deal with him at the end of the month thru WF. So it doesn't make sense.
I know - but this is exactly what happened to me. Other deals had been closed, but they stood firm with this one. I went to executive office as well. Executive office opened a case and then came back and told me the exact same thing.
I agree with Brett, it could be due to the arm's length. Of, does the buyer have his own agent? If not, that could be the issue. Does the buyer's agent also happen to be the mortgage loan officer? If so, that could be the problem. Does the buyer have family members who work for Wells Fargo? Is the buyer an LLC? That could be an issue. Has the buyer purchased many other WF short sales? If so, that could be the problem.
Another way to find out is to ask the negotiator to close the file. Then reopen it the following week with a new negotiator.
@ Elizabeth yes the buyer has his own agent. No its a cash deal and we are closing on another property with him thru Wells Fargo.
I have contacted executive office and a case has been opened.