Wells Fargo is one of the easier banks to work with along with Citibank. One co-worker told me that she was able to get SunTrust short sale passed in 23 days so I'll include them on the list! That would be the fastest turnout time that I've heard. Anyway, here's the Wells Fargo short sale process as provided in their short sale package for real estate agents. Hopefully this will save you time. I received this letter in Feb 2009.
How To Get Started
Homeowner is required to call the Short Sale Phone team at 866-903-1053. Financial information is reviewed and pre-foreclosure sale counseling is completed.
The REALTOR faxes the completed short sale package to 866-359-1975, Attn: Setup
· If
the property is located in Alaska, call 888-833-6711.
Documents Required To Begin An Application
From the REALTOR
- Fully executed listing agreement.
From the Homeowner
- Signed and dated financial worksheet listing all monthly expenses.
- Signed and dated hardship letter (why they are unable to pay the mortgage).
- Letter authorizing the REALTOR access to information on the account, it must be dated and include the last four digits of the borrower’s Social Security Number, their signature, the full account number and property address.
Additional Information
- A short sale approval is good for 30 days. If closing does not occur within 30 days, the entire short sale package may be resubmitted with updated information, or the approval process may need to start over.
- REALTOR or homeowner inquiries should be directed to the negotiator assigned to the file, whose information will be communicated during the introduction call.
- This must be an “arms-length” transaction. The property may not be sold to anyone the seller has a close personal or business relationship with including family, friends, or neighbors.
- During the introduction call the following will be addressed:
- Commissions
- Fees and costs
- Pricing of the property
- Timeline
- In order to reduce the 37 days response time the liquidation team is strongly recommending that the homeowner and/or REALTOR notify Wells Fargo Home Mortgage of their intention to sell their property as soon as the listing contract is signed. This will allow us to complete the property valuation and borrower financial evaluation prior to receiving an offer. This significantly reduces the short sale decision time on a submitted offer.
- In some cases investors and/or PMI companies require the mortgagors to sign an unsecured note for some or all of difference between the net proceeds from the sale and the amount due. This is communicated as part of the response to the short sale offer.
Here's the estimated short sale timeline according to Wells Fargo.
3 Days
- Complete short sale application received·
- Short sale application activated·
- Completed application assigned to negotiator·
- Incomplete application will delay process.
5 Days
- Negotiator initial review·
- Introduction to call REALTOR and homeowner
10-17 Days
- Property evaluation completed (appraisal or interior BPO per investor requirement
10 Days
Additional Steps:·
- Mortgage insurer approval·
- Investor approval·
- Additional liens negotiated by REALTOR·
- A completed net sheet/HUD (our payoff is not necessary)·
- Fully executed purchase contract with all pages initialed by buyer(s) and seller(s).·
- Buyer pre-qualification letter or proof of funds if cash offer.
2 Days
All items above complete
- Application decision
- Decision letters issued
Total Days: 37 Days
I hope you find this helpful. I wish every bank provides this kind of clear written guildeline.
We have an offer pending to buy a short sale home, what is the estimated turnaround time for their response?
Posted by: Stacey | October 27, 2009 at 08:21 AM