Wells Fargo New Approval Letter does not provide a waiver of deficiency!!! Has anyone had this issue recently??!!!

Just received an approval from Wells Fargo it seems they now have new verbiage which states, "With the exception of a Home Affordable Alternative (HAFA) closing, nothing in this Demand Statement or in the release of the mortgage shall waive the right to seek a deficiency under the loan documents or any of its other rights there under, and the obligations evidenced by the note shall remain in full force and effect until paid in full."

 

Seller refuses to close unless we obtain a "FULL WAIVER OF DEFICIENCY"!!!  I called the Final Negotiator and requested such, however, she told me this is the new language and not her nor her supervisor or anyone else for that matter can change this verbiage;  WF legal department is aware of this.  Is there anything that can be done????????????HELP!!!!!!!!!!!!!!!!!!!!!!!!  In the meantime we have an approval but the seller will not proceed!!!!

 

Any suggestions will be greatly apprecaited!

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Permalink Reply by Keji Ogunleye on May 10, 2012 at 8:58am

I have short sale in process right now with WF.. and the investor is Freddie Mac.. So I'm waiting to see the approval letter...

Permalink Reply by Ken Ryan on May 10, 2012 at 9:02am

I have presented this issue to appropriate NAR reprsentatives to contact Freddie Mac. I will forward any updates I receive.

This WF policy may also conflict with the VA - CSP program. That is being checked on as well.

Good luck on your Freddie sale. 

Permalink Reply by LISA VAUGHAN on May 10, 2012 at 11:36am

I was told by Wells Fargo today that the new approval letter is for all investors EXCEPT Freddie Mac, hence the Freddie Mac Bulletin requireing the waive all right to seek deficiencies.....PLEASE share as soon as you recieve it.

 

 

Permalink Reply by Amanda on May 14, 2012 at 5:38pm

hi Lisa,

Thank you for replying to my posting yesterday (5/13).  I did read ken's posting from Thursday and yes, my loan is Freddie Mac but, I wonder why I got that language in the WF approval letter (that they reserve the rights to come after me with deficiencies) if they already know that I have a Freddie Mac loan.  Are you saying that although that language exists, because of the Freddie Mac bulletin, that letter isn't accurate?  That the Freddie Mac bulleting protects me? 

**I also read somewhere (can't remember now but could be a later Freddie Mac bulletin) that the Freddie Mac bulleting waiving all deficiencies, which came out on 2/15/12 was later corrected to clarify and quality that only with HAFA closing, would Freddie waive all rights to seek deficiencies.  I don't think my SS was done through HAFA because this is an investment property and not a primary residence (I think one of the requirements of HAFA closing is that property be primary residence or in anycase the title company did not submit this closing as a HAFA closing).

 

Any more thoughts on this Lisa?  I also saw posting by Kris which he posted about 15 minutes ago where he is saying that Wellsfargo managment has let it be known that Freddie now wants to start stating that language (that they can go after deficiencies) on all approvals except for HAFA closings.

 

I am now going to ask some follow up questions to Ken.  I wish I had realtors like you--if all of your are realtors.  I am the seller.  : )  I appreciate the search for knowledge and genuine concnern you have for your sellers.

 

Thank you,

Amanda

Permalink Reply by LISA VAUGHAN on May 14, 2012 at 5:55pm

Amanda,

I was told by wells fargo's short sale escalation department that there is a different approval letter for "freddie mac" loans.

I have attached the the Freddie Mac bullitin with the servicer requirement.  I would encourage you to contact WF escalation department.  The home owner ofter get's more attention that agents.  Keep pushing.... and keep me posted. GOOD LUCK 

Attachments:
Permalink Reply by Amanda on May 14, 2012 at 6:12pm

Hey Lisa,

 

Your information seems to contradict what Kris is saying unless I am not understanding what Kris is saying.  Are you sure this bulletin is current?  That they didn't amend this bulletin by qualifying that the loan must be HAFA?  Can you tell me what you think of Kris's posting?  Are you saying something different than what he is saying? 

 

Thank you!!

Permalink Reply by LISA VAUGHAN on May 14, 2012 at 6:26pm

 I just received an approval on Friday and the manager told me the same thing.  Here is the verbiage for the new Wells Fargo (Non FHA/Non HAFA/Non VA) approval letter.

Looks to me like a manager told him it was for everything except FHA, HAFA, and VA.... I recieved the letter for VA.  I don't think wells fargo knows what is going on.   

I am not seeing were Kris' information contradicts what I am saying??? 

The Freddie Mac Bullitin is current as far as I am concerned.  contact WF short sale escalation department in San Antonio, TX. 

 

Permalink Reply by Dennis Yoo on May 10, 2012 at 10:07am

I just received an approval letter from ASC stating the same.

"America's Servicing Company approves the sale of the property referenced in the account information
box. This sale will result in a short payoff of the mortgage loan referenced above, and the mortgagor(s)
by completing the short sale based on this Demand Statement, acknowledge and waive any and all
rights to any escrow balance, insurance proceeds or refunds from prepaid expenses. Neither the seller
nor any other party may receive any sale proceeds or any funds as a result of this transaction except as
noted in this Demand Statement.


When America's Servicing Company receives the required payoff and all required documentation as set
forth herein, we will arrange for the mortgage of record to be released.


America's Servicing Company will notify the major credit bureau(s) to reflect “account paid in full with
less than full balance” which should appear on the credit report within 60-90 days from the date of
notification. However, America's Servicing Company is not a credit bureau and cannot control how or
when the report will reflect information to other users of credit reports.


With the exception of a Home Affordable Foreclosure Alternative (HAFA) closing, nothing in this
Demand Statement or in the release of the mortgage shall waive the right to seek a deficiency under the
loan documents or any of its other rights thereunder, and the obligations evidenced by the note shall
remain in full force and effect until paid in full."

Permalink Reply by Dennis Yoo on May 11, 2012 at 3:46am

I asked negotiator how to get no deficiency clause and was hit with this reply

"Good Morning,

The investor on this account does not waive their right to a deficiency in a short sale.  We do not have the authority to obtain this request.

Thank you."

Permalink Reply by LISA VAUGHAN on May 11, 2012 at 3:50am

Dennis, who is the investor?

Permalink Reply by Dennis Yoo on May 15, 2012 at 6:45am

investor is neither freddie, nor fannie. Negotiator will not disclose the information to me. I asked about cash contribution to get deficiency waived and was given this response.

"Message Inserted (05/14/2012 08:06 AM) On:

 

Good Morning,

The deficiency will not be waived under any circumstances.

Thank you."

Permalink Reply by B Gerber on June 20, 2012 at 8:13am

Dennis,  I just received the same letter and answers from the negotiator, what did you do, and what was the outcome

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