Replies to This Discussion

Permalink Reply by Brenda L Wood on January 4, 2012 at 6:52am

Kim,

I am currently working a WF short sale where the buyer did not want to wait out HAFA (we were told by a WF rep that it would take 8 months to work out HAFA?????? If I called in again though I would probably be told something else).  We were also told that short sales worked through Equator were not eligible to be considered for HAFA, so that is what we have done.  So, you should be able to just initiate in Equator and since you have worked a BOA through Equator you should be able to use same sign in credentials.  Things have gone relatively smoothly from a processing standpoint and the negotiator has been quick to respond.  Best of luck!

 

Brenda Wood, ABR, SFR, CDPE

 

Permalink Reply by Kim Eisen on January 4, 2012 at 8:45am

Thanks Brenda - I found out it was an FHA loan as seller had confirmed before that it was conventional.  WF said to 'fax' it in and they would handle it.  I have read up on FHA PFS (Pre-Foreclosure Sale) but found no real set of instructions as to what the 'agent' needs to do, most of the FHA Mortgage Letter of instructions seems to be for the servicer.  I told Wells it was an FHA and they said just fax it in.  Hopefully I will have done the right thing.  There never seems to be 'one way' for a lot of these servicers no matter how much experience you have and there is always a 'first' that comes up (like the FHA SS for me).  Well, it makes life interesting and educational.

 

Kim Eisen

Realtor since 1980

Permalink Reply by Deborah Y Wilson on January 4, 2012 at 11:00am

Let me see if I can help you.  In order for a homeowner to do a short sale when they have an FHA loan, they must first qualify for the FHA PFS or Pre Foreclosure Sale Program.  The application is the same application you would use for Wells Fargo, but a different dept handles this in a two step process.  You will submit the file to Wells Fargo and they will assign it to a negotiator who handles FHA.  The first part is qualifying the seller and setting a sales price and net the investor must have.  If the seller cannot qualify for an FHA PFS, he can still pursue a traditional short sale.  The most important thing on these FHA files with Wells Fargo is to follow up regularly, resubmit docs every time they ask and lose them and you will get it done eventually, but it can take 4 months to complete this process.  After the file is approved for FHA, the seller will get a letter they must sign and return to the negotiator per the instructions provided.  This letter is approval to participate and do a short sale.  Then the offer is considered and must meet the net required in the letter.  The seller will receive an incentive based on the net and the time it takes to sell, and the letter also makes that clear, but it is generally between 750 and 1500. Of course the higher amount is paid if the file closes within the first 30 days and then is lowered for every thirty days thereafter.  If there is a second lien, FHA will only allow 2500 to settle the debt and will not allow any contribution to the second other than the amount on the HUD, even if it comes from other parties.

Permalink Reply by Deborah Y Wilson on January 4, 2012 at 11:03am

You will fax it to 866-969-0103  and FHA is always faxed in as the process is not compatible with Equator.  The seller will need to call in at some point, but not at first.  Stay in touch with them and find out when they want him to call and then make sure he does it and keeps at it until he can confirm with Wells representative that he has complied with what is required of him to move his file forward. The number for the seller to call will be provided to you and he will most likely get a notice in the mail.  The main number to call for Wells Fargo is the same on all files, so just in case, it is 866-903-1053.  Good Luck

Permalink Reply by Jeff Payne on January 4, 2012 at 11:40am

I dont believe this to be true, I have closed FHA short sales in equator with both Wells and Bank of America in 2011   FHA is not always faxed in.

Permalink Reply by Kim Eisen on January 4, 2012 at 2:29pm

Thank you Deborah!  The number they gave us to have the seller call within 48 hours after faxing was a fax # too.  So, I had the seller call the number you listed and she did get confirmation they received the fax and took some more general info from her.  They said to call back in 2 days if we haven't heard anything.  When I asked about Equator, she said they would probably put it in and then let me know, but that was another gal too, so who knows. 

Now I have a another question. The short sale guide doesn't say anything about an application and I didn't send one in, is there one?  I did send a very detailed cover letter with all the info on it.

Permalink Reply by Jeff Payne on January 4, 2012 at 11:42am

Kim, Wells is on equator but many have found lately that it is better to fax in.  Wells' process in equator is not as streamlined as BofA and it is very task intensive.  I have used equator for FHA short sales with Wells but would probably fax it in based on my most recent experiences with Wells Fargo and equator.

Permalink Reply by Kim Eisen on January 4, 2012 at 2:33pm

Thank you Jeff - That was confusing me a bit - Equator or Fax (chicken or the egg ; )))  Now I understand where different people were coming from.  Equator just worked so snazzy with BOA, I was hoping to have the same kind of experience with Wells. 

Permalink Reply by Brenda L Wood on January 6, 2012 at 8:28am

Well, you are certainly on the money regarding there is no "one way" particulary with Wells Fargo!  My seller also had an FHA loan and we moved through Equator just fine, and I received approval last Friday. We did not go through FHA's version of HAFA or a Pre-Foreclosure request and went the traditional short sale route.  So, FHA is not always faxed in as in my case - what I was told by WF rep is that if you want HAFA consideration (or FNMAs verision of HAFA) then you cannot use Equator.

I actually found the Equator system easier to manage than calling in and being told something different each time, and my processor and negotiator would get back to me on things right away.  Files were not lost and there were no resubmissions - with the exception of uploading most recent pay and check statements.  My seller recieved waiver of deficiency judgment but not the $1000 for moving expenses. Not waiting the extra months that HAFA consideration would take was more important to my seller then the $750 to $1000.  Good luck to you!

Permalink Reply by Kim Eisen on January 6, 2012 at 1:56pm

Thanks Brenda - Just wondering with your recent approved FHA SS, was it with Wells, and, if so, did you just upload to Equator first or ??  My client doesn't care about the extra $ as much as moving as quickly as possible.

Permalink Reply by Brenda L Wood on January 9, 2012 at 4:40am

Hi Kim, yes Wells Fargo, only one lien. I looked back at my notes on this one and it was a bit of a rocky start:  They had me fax the Authorization to 866-917-1877 but the rest of the package to 866-969-0103. I included the Alternate RASS form asking for HAFA consideration and we had an offer on the house.  While the file was supposedly being considered for HAFA we received an email stating to open the file in Equator.  I set it up in Equator.  My client was then denied for HAFA and Wells Fargo took her file out of Equator.  I was told that my client could not be considered for HAFA unless she went through HAMP first and that would take 6 to 9 months. My client was already in foreclosure and was ready to move on so after consulting her I called back Wells Fargo and told them we wanted to pursue a regular short sale and they reopened the file in Equator.  At one point,  WF "denied" the short sale and sent my client a formal letter. When I checked on that they told me that it was so that they could close the file that I had faxed in.  Let me know if I can provide any other info.  Again, best of luck!

Permalink Reply by Kim Eisen on January 10, 2012 at 8:05am

Brenda, I got confused when you said they denied it, so they could close the file you faxed in. Does that mean that they only 'denied' the file you faxed in, but the 'real' one went thru Equator? Might seem obvious, but wanted to make sure.  Thanks.

• ‹ Previous
• 1
• 2
• Next ›
• Page