Short Sale Report - Wells Fargo

Impossible to speak with a live human. Everything must be faxed, repeatedly they can not find it or claim not to recieve faxes. When calling in the person who answers the phone will pull up the file on the computer. The only comments or information you can get is what has been typed into the file.

I sent this email to Mr. Robert Steel, board of director at Wells Fargo, regarding the short sale process of my home. As of today, we are still waiting on the 2nd mortgage approval.

Dear Mr. Steel,

I am writing to express my concerns of the business practices within Wachovia/Wells Fargo. I currently hold a first and second mortgage with them, and am in the process of a short sale. I am extremely curious why the first mortgage negotiator did not coordinate with the second mortgage department to arrive at one approval of the short sale. This is a big problem, not only for myself and those concerned with the sale of my home, but for others as well.

We were told by the processor of the first mortgage, Jeremy Demory, that the negotiator would contact the second mortgage department and finalize the short sale. Tiffany, the negotiator, did not contact them. Now we have approval on the first mortgage, which has a signed agreement stating it must close within 30 days of the date of approval, and the second mortgage department is telling us it will be 30 to 60 days before we can expect approval. What are we supposed to do? Can't the two departments work together to come up with one approval? After all, it is within the same company. As it stands now, the second mortgage division is ordering a BPO, which the first mortgage department did two weeks ago. Can't they share information? I just don't understand this process. I requested the entire short sale package be sent over to the second mortgage department. I was informed that they could fax it to me, and I could then fax it to the second mortgage, but they could not send it over directly. Even after requesting the package, I never received it. There needs to be instructions for the processing of these types of transactions. It would benefit the seller's, realtor's, and prospective buyer's. Most of all, there needs to be cooperation within the lending institution to work together in the case of a first and second mortgage within the same company.

In the meantime, the buyer is going to be out of a place to live at the end of November. They gave their notice to the apartment complex where they live, because Jeremy told us "if there is an amount on the approval letter for the second mortgage, then that means the negotiator negotiated it with the second mortgage department". I have this voice mail on my cell phone. They were preparing for closing. The contract states they have fifteen days from the date of seller's lender approval to close. They are on constant 'ready to move' notice. I feel bad for the buyers. They got married at the beginning of September, and hoped to have a place they could call home. They love this house, and want to see this transaction through, but because of the delays, the new wife has had to move into the new husbands apartment, their dogs are in a kennel, and now they may both be without a place to call home. That's not a good way to start a marriage now is it?

What are we supposed to do about our closing? The buyer's are frustrated, and rightfully so. This is our fourth contract on this property, and has been going since July 7th. This process does not have to be so difficult.

By the way, I tried to do the right thing when I realized I could not make my mortgage payments. I wrote a letter, beginning in January, and subsequent letters before each payment was late, explaining my situation for non-payment. I asked on three separate occasions to get information on alternatives. I have never been in this position before, and I didn't know how short sales, loan modifications, deed in lieu of foreclosures, or things of this nature worked. It would be nice if there were instructions for these types of programs. I received a couple of pamphlets after my third request, but there were no real guidelines as to how the mechanics of the process worked.

I was placed in a loan modification program in April of this year, but learned from one of the pamphlets I finally received that I did not qualify for this program, because I have not lived in the property since August, 2008. I moved to Florida when the house was still on the market. However, Wachovia would not release me from this program on my request. They told me they had to 'see it through'. Why? I didn't qualify for it. Why leave me in it? I finally got out of that program early July. I have been in the 'short sale process' since July. I felt like the file was sitting on hold until the transition from Wachovia to Wells Fargo took place at the end of September. My guess is that the department that handled those transactions was phased out, so there was no one to actively work the files until the transition was complete. That is the way it appeared anyway. When Wells Fargo took over, most of the documents were lost in the transition. We had to resubmit the documents. That was ridiculous! It takes time from everyone involved to jump through all the hoops over and over again.

This has been a living nightmare, and my realtor and I have spent a lot of time and effort trying to see this contract through to the end. I don't think the people at Wachovia/Wells Fargo care about how their inefficiencies affect other people. I am tired and worn out trying to see this through to the end. If the buyer backs out, the house is yours. I have nothing to gain or lose at this point. There is no cooperation from the people on the lending end. I have tried to keep in constant communication, but it is difficult when you talk to people who give you a different story each time you call in.

If you can assist in any way, I would truly appreciate the help. If not, I would hope that you can institute some direction and coordination within the organization to avoid ruining the hopes and dreams of future buyers. Without buyer's, your toxic asset inventory will continue to build.

A.S.C. (a subsidiary of Wells Fargo) held the 1st on a home I am looking to purchase. Accordiing to my Agent, their negotiator was easy to work with, and quick to respond to the listing agent's phone calls, and from start to finish took about 36-days to get an approval letter from them. After some long conversations (according to my Agent), I ended up paying an additional $4,000.00 above the submitted offer. However, the house is well worth it, and the amount of the loan they are waiving, I did not find that unreasonable at all. Way to go Wells Fargo and my Reality Team! Ohhh...coincidentally, I am servicing my loan through Wells Fargo, I have no idea if that helped in their quick decision making. My Agent told me she does not think it matters.

I am currently trying to refinance my home it went well all the way until it went for final approval. My husband was self employed and had to report losses on his business last year. WellsFargo is now holding our closing due to our losses last year. Why and how did we get pre approved and convinced that we would just sailed through this mess? I dont know but I wish I would of never done it now it has now been three months and we have not yet closed.

I closed a short sale with them, first and second, from start to finish in 60 days on Apr 20. Transaction was super smooth and fast. Wells is a good bank, and this transaction was incredible. No short sale negotiator used.

In my opinion, Wells Fargo is ok to work a deal with. Just like most banks, it really depends on the negotiator and/or processor that you get assigned to your file. I noticed some similar comments on another short Q&A site http://www.shortsaleopedia.com/ that also had interesting comments about working Wells. With Wells Fargo its important to follow-up and then follow-up again. Make sure you submit a complete file initially and keep asking what they are going to do next and when that task will get done. Make them accountable for their job. Good luck.

It's all about how you package your offer to the lenders. I've closed a short sale deal with Wells Fargo less than 3 months. Yes. And it was in July 11/2011 in San Ramon CA. The fact that a lot of agents put the blame on the lenders for their shortcomings and not paying attention to the offer they are submitting is the key here. I'm an active Realtor here in Tri-Valley. Personally I will never ever submit an offer to a lender without my buyer depositing earnest cash into an escrow account. What good is an offer without any substance? The substance here is not a copy of check, but a cashed check in the amount $5000 so the lender knows they are dealing with a constructive offer not a testing the water offer.

You the agents must submit a bona fide offer with cashed deposit receipt if you want the offer to be accepted or countered.

Best of success!
Jordan Mossa
www.Jordanmossa.com