Home Buying in Portland>Question Details

Idapeach, Other/Just Looking in Portland, OR

My friend just moved to Portland, Oregon she is in the process of buying a short sale and her offer was already accepted by Wells Fargo Bank. They

Asked by Idapeach, Portland, OR Fri Feb 19, 2010

only ting they are waiting on is the set up of an appraisal. It seems they are having a hard time getting this done. My friend (who is the buyer) is not allowed to set this up, so she is waiting for the lender to set this up..do you know why it woould take so long? (She had to sign another extension today because of the appraisal not getting done.

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Welcome to Portland, to answer the question I will assume you are correct in saying the offer has already been accepted by the short sale lender, Wells Fargo it seems. She would have been supplied with a written short sale approval letter from the negotiator at Wells Fargo. Wells Fargo would have also included a closing deadline. The Wells Fargo approval she received was for the short sale process to continue with your friend's offer which was acceptable. It also sounds like she is securing her new loan from Wells Fargo as well. For your friend to secure her loan, move through underwriting, fund and close, the appraisal must be completed without delay. I had a client with a similar problem with Wells Fargo, their appraiser took nearly 4 weeks before turning in the appraisal. I know when the appraiser was at the home because I let him in. What happened next I will never know. Numerous calls to the Wells Fargo loan officer met with "well I just don't know, it shouldn't be long, you know we don't have any control over the appraisers anymore." After demanding the phone number of the appraiser and asking to speak to the loan underwriter, this loan officer finally picked up the phone and called the appraisal supervisor and guess what? They received the appraisal report the very next day!

You mentioned she signed another extension...was this an extension on her loan lock or an extension of the closing deadline contained within the original real estate agreement between Buyer and Owner/Seller? Yes, lots of questions. If she is waiting for the short sale appraisal then her offer is not truly 'accepted 'by the short sale lender. Their appraisal process is also at their own sweet time. They will get to it, just continue to be patient, have your Broker stay in constant communication with the Seller's Broker (who should be in regular communication with the short sale negotiator) and be certain that your offer remains in the number one position. If the appraiser she is waiting on is for her own loan approval to purchase the home, get on the phone today and everyday thereafter and do not stop until you are satisfied. Do not be afraid to ask for a supervisor or someone in higher authority at Wells Fargo, she deserves the service they promise.

I specialize in short sales and bank foreclosures. If I can be of help to anyone, please give me a call.

Howard Page 503-516-7121
Web Reference: http://www.HowardPage.com
1 vote Thank Flag Link Fri Feb 19, 2010
It sounds like a breakdown from your friends lender. In the case of a short sale, wells fargo is the bank who must agree to let the seller sell the house for less than the amount owed on the property. Their acceptance is only an agreement for the seller to proceed and have Wells take a financial loss. Your friends mortgage provider is responsible for ordering the appraisal in a timely manner. This has become slightly more difficult since last May when a new lender guideline came on the scene called the HVCC.
http://www.oregonmortgageblog.com/government-actions/the-hom…

I'm sending you some links to more about this new lender requirement. its basically an attempt to remove any influence the lender could have over the valuation process. My company Mortgage Trust, has a fairly good solution to mitigating these problems, but they still exist. Also, if your friend is getting a VA loan, all bets are off. Those are pretty much a crapshoot on the appraisal front.

note- the blog post i'm referencing here is fairly old. It says that HVCC does not apply to FHA, but as of Jan 1 2010, it now DOES apply.

Anyway, it sounds like your friend might be connected to a sup-par lender.
Web Reference: http://www.pdxhomeloan.com
1 vote Thank Flag Link Fri Feb 19, 2010
If you have the street name maybe I could look it up for you..I sell alot of bank owned lately by Wells Fargo..They are easy to deal with and seem to be motivated to get these homes off their books...not like some other banks that I won't mention but I think most of us here know who those are...Take care

Genie Shook
Principal Broker
0 votes Thank Flag Link Mon Feb 22, 2010
Hello Ida,

If Wells Fargo is the lender, your friend is using for purchase funds, you should know they are almost a month out in underwriting currently. If Wells Fargo is the mortgage servicer for the seller's mortgage, then what others have already posted is correct. It could be that Wells Fargo is the seller's mortgage servicer and also required the buyer to pre-qualify when them as part of the offer. Typically they only require this of their foreclosure sales but they have been trying to request this more and more lately. If your friend is using Wells Fargo, I highly suggest she call for other quotes. I'm sure she will find lower rates, fees & better turn around times other places.

Crystal Beard
Ambient Home Lending - 50% off Special - See website for details
http://www.ambientlending.com
Lending Throughout Oregon!
0 votes Thank Flag Link Sun Feb 21, 2010
It sounds like you are waiting for a BPO from the bank or a bank appraisal and that can take some time before an appraisal is done for her offer. She needs patience and if she is trying to get it done before April 30th she should look around for another home to be on the safe side that is not a short sale because when the seller comes to the table to sign and they are asked to sign a note for the balance owed and they say no and let the house go to foreclosure and then your friend is out so prepare her for that, you never know what will happen. A short sale is nothing like a normal sale and a normal sale today is far and few between since the lenders seem to change the rules as you go. Good luck but have a back up plan.

Tom Inglesby, Broker
RE/MAX Equity Group
ABR,CRS, CDPE, Earth Advantage Broker
503-319-9035
0 votes Thank Flag Link Fri Feb 19, 2010
New laws stop lenders from picking their appraiser, they have to take a random selection. So it is not the seller's fault, the buyer's fault or the lenders fault... legislators! It was an idea meant for good, to stop potentially fraudulent appraisals, but all new legislation has unintended consequences...
0 votes Thank Flag Link Fri Feb 19, 2010
I: until you've done or participated in a "short-sale", you just don't know what "patience" REALLY is... :-). The buyer's lender is responsible for the appraisal unless what you are really referring to is the BPO (Broker Price Opinion) from the lender who will either accept or deny the "short-sale". Anyway, hopefully your friend has a Realtor who is experienced with the short sale procedure. If not, please give me a call. There may just simply be some miscommunication regarding the process...
Janeese Jackson, Principal Broker
Real Estate Resource
503-709-0802
jj@janeesejackson.com
0 votes Thank Flag Link Fri Feb 19, 2010
I am guessing you are not getting the whole story. I bet Wells has not accepted the terms. They are terrible to deal with right now. Ask her if she has a copy of an approval letter from the Bank. I am thinking she is hearing or understanding something different then what the reality is.

Get your hands on the document and see for sure. If you have it then it is just a waiting game. Better get clarification.

Bets wishes and tell her to hang in there.

Regards;

Dirk Knudsen
Broker
Re\Max Metro Gold
503-799-8383
0 votes Thank Flag Link Fri Feb 19, 2010
There are so many sellers trying to sell short around the Portland region right now that holders of loans on these properties are overwhelmed. I suppose they could hire more staff to deal with the increased volume, but where would they get the money? They're already losing tons of it because of their many short sales & foreclosures.

If your friend was lucky enough to get heer offer accepted, and is able to stay in that position till the transaction finally closes, then she should consider herself blessed. Many short sales are eventually completed through time and patience. Many other short sales, however, blow up at the last minute, when the property ends up going to foreclosure, despite the accepted short sale offer. This is all perfectly legal, and not uncommon. All contracts and short sale documents must be read carefully.

Best of luck!
Web Reference: http://www.bybryson.com
0 votes Thank Flag Link Fri Feb 19, 2010
Hello:

I am sorry to hear about the upset your friend is feeling with the short sale purchase. As you can see by the responses below there are a lot of answers.

The short and the long of it is: "short sales" take time and realtors/brokers and the buyer's lender have very little control over when the sale will close.

When working with buyer's and selling short sales, I let my clients know that it can take 6-18 months to close the transaction. In very simple terms a short sale goes through a few more steps than your traditional purchase and sale.

- BUYER WRITES OFFER
- SELLER ACCEPTS OFFER
- OFFER IS SENT TO BANK TO REVIEW & ACCEPTE OR REJEDT (It can be month's until you hear back on this).
- OFFER IS ACCEPTED, REJECTED OR COUNTERED BY THE BANK/CREDITOR WHO HAS THE LOAN ON PROPERTY -- THIS CAN BE MORE THAN ONE BANK AND CAN TAKE TIME.
- CREDITOR/BANK PEFORMS A BPO - OR PRICE APPRAISAL ON HOME

and now and only now

-BUYER IS WORKING ON A TRANSACTION TO CLOSE
home inspection
appraisal

and it is still not 100% the bank will close on these terms.

It is important to understand the bank is taking for example 70 cents on the dollar and the second loan could be taking 30 cents on the dollar. The bank or banks will and do whatever they can to try and get as much money as possible on the home and closing quickly does not always work in the banks best interest.

SHORT SALES ARE NOT IMPOSSIBLE -- They just take a little more time.

ALIA MARIE HAZEN
Your Neighborhood Realtor
RE/MAX Equity Group
503-495-5411
0 votes Thank Flag Link Fri Feb 19, 2010
This is part of the short sale process. How long ago did the offer and all supporting paper work get to the SS lender? Then…

The next step is a level 2 negotiator which reviews all paper work (which can take 4 to 6 weeks) and if approved then they order a BPO or appraisal (another 1-2 weeks).

Then another review is done once the BPO or appraisal is in the hands of the bank (another 1-2 weeks)
Then the SS lender can issue a SS approval. Is this where they are at?

Next normal closing time lines start (2,3,4 6 week process, the buyers inspection, appraisal, documents etc) and then sign and close.

Kevin Sucher
503-214-4139
0 votes Thank Flag Link Fri Feb 19, 2010
Seems a bit strange. But is it the appraisal by her lender or teh bank holding the current loan? Either way one would think it could be done quickly. What does her agent say?
0 votes Thank Flag Link Fri Feb 19, 2010
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