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Kristin, Home Buyer in Littleton, CO

Quick Question on a SHORT SALE with Wells Fargo as the lender and a scheduled foreclosure date of 2/1/13

Asked by Kristin, Littleton, CO Sun Nov 25, 2012

Quick Question on a SHORT SALE with Wells Fargo as the lender. The BPO has been submitted and I believe our offer is right in line with the BPO and we hope to hear from lender that they will accept our offer. Here is my question. This deal has been working since Sept 1st - apparently the seller had a BK in process and that had to close before the short sale could proceed. That has now occurred. The house is scheduled for foreclosure on February 1st 2013. Here is my question. If Wells Fargo accepts our short sale offer in the next few weeks will they kill our deal since we are too close to the foreclosure date? Also, how quickly can a closing occur once the bank has accepted our offer? We would like to close in less than 30 days if possible. We have appriaser ready to go the day after we received a signed acceptance letter from Wells Fargo.

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6
Dena Schlutz’s answer
I assume that someone, like a Realtor, is working with the seller and the bank to process the short sale? February 1st is not anywhere close to 'soon' in my opinion. I have had foreclosures delayed by submitting an offer the Friday before the Wednesday foreclosure date. I don't know if you can close in 30 days, that all depends on Wells Fargo. Sometimes they move quickly, sometimes, not so much... Be sure that all of your documents are initialed on every line, full legible signatures everywhere and the seller's financials are complete down to the last detail. If it is an FHA short sale, there are specific guidelines on time frames that Wells Fargo needs to respond to offers.

Good luck!

Dena Schlutz
Owner/ Broker
Estate Professionals
REO and Short Sale Certified
0 votes Thank Flag Link Wed Nov 28, 2012
Hello,

I have a question: We are working through the short sale. We have 1st mortgage and the 2nd lien (Equity line of credit). They both have approved the offer and the short sale. The first mortgage gave us a date of 6/27 as the date by which the transaction/closing has to be complete.
However we are currently overseas and can't come back until end of June. Can we get that date extended say for another 2 weeks ? We'll have to look for a place to move to, pack up all our stuff and move. This will take way more than 2 weeks. Please let me know if you think Wells Fargo will allow it and what should i use as a reason for postponement ?
Thank you!
Flag Thu May 29, 2014
Kristin,

short Sales are a strange breed. The short sale process is a long drawn out affair. If there is a bankruptcy involved it can take even longer. I have seen offers canceled and the process stopped when there is a BK and started all over again after the BK is discharged. Looks like you are on track to get this transaction completed before 2/1/13. When there is an offer in process the bank will 'usually' postpone the sale date in 30 day increments until it closes. Although I have seen an offer in process and with active negotiations in process and the property goes to sale on the sale date to the shock and surprise of all involved. This happens when as Jorge said, the foreclosure dept. and the loss mitigation dept. are not on the same page.

Often the left hand does not know what the right hand is doing. It does help to try to communicate and coordinate with both departments on a weekly basis. The problem arises when you put in a question or request and there is no response from either department for a couple of weeks. That time element can throw everything off. Once everything is in place, you could conceivably close in 30 days from approval. I would suggest that you not do your appraisal before proceeding with an inspection. Often with short sales there could be hidden defects that you wont see without an appraisal. since the bank nor the seller will do any repairs, you need to be sure what you are committing yourself to. Once the inspection is done and approved by you, then you can schedule the appraisal. You can discuss all of these things with your Buyer's Agent.

hope this is a home you really like and desire and that it is a good deal as confirmed by your Buyer's Agent in a CMA. Sometimes short sales can be more work and trouble than they are worth. Best of success with your purchase.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
1 vote Thank Flag Link Sun Nov 25, 2012
Hello Kristin. Thank you fof the opportunity to serve you. As to your questions, Once the Seller's bk is discharched the short sale can continue. Your offer will keep extending the foreclosue date 30 days at a time, if it gets that far before you get an answer. Do not worry about that now, you have time. Once your offer is accepted the deal can close as soon as your lender is ready to close. If you are buying cash, you can close within days of receiving the approval. Did you already performed an Inspection on the property? Who is negotiating the short sale with the Wells Fargo? How many loans on the property?
I really believe you will have an answer to you offer from Wells Fargo way before Before January 15th. My advise, make sure the person negotiating the short sale with Wells Fargo stays on top of it on a weekely basis.
Feel free to call me with any questions.
Have a fun week!
http://www.armstrongdenverhomes.com
1 vote Thank Flag Link Sun Nov 25, 2012
Hey Kirstin, I was just wanted to know the outcome of this..I am in a very similar situation in NC
0 votes Thank Flag Link Mon Dec 30, 2013
Hi Kristin,

Wells Fargo can extend the F/C sale date if there is an agreed upon Short Sale. Just need to make sure the Listing Agent is pushing (and confirming) the WF Loss Mitigation (Short Sale) Dept to communicate with the WF Foreclosure Dept. When the 2 departments don't communicate, that's when the F/C sale occurs. Once Wells Fargo accepts the offer (and postpones the F/C sale date), then WF will schedule a closing date possibly 30 - 45 days out. You just need to make sure the Listing Agent is staying on top of WF to coordinate the postponement of F/C with short sale. Good Luck !
0 votes Thank Flag Link Sun Nov 25, 2012
Hello,

I have a question: We are working through the short sale. We have 1st mortgage and the 2nd lien (Equity line of credit). They both have approved the offer and the short sale. The first mortgage gave us a date of 6/27 as the date by which the transaction/closing has to be complete.
However we are currently overseas and can't come back until end of June. Can we get that date extended say for another 2 weeks ? We'll have to look for a place to move to, pack up all our stuff and move. This will take way more than 2 weeks. Please let me know if you think Wells Fargo will allow it and what should i use as a reason for postponement ?
Thank you!
Flag Thu May 29, 2014
First off, you ahould be asking your agent these questions, as all short sales are different.

That being said, if there's an accepted offer, Wells will likely extend the sale date, because they really do not want the home.

Best of luck!
0 votes Thank Flag Link Sun Nov 25, 2012
Hello,

I have a question: We are working through the short sale. We have 1st mortgage and the 2nd lien (Equity line of credit). They both have approved the offer and the short sale. The first mortgage gave us a date of 6/27 as the date by which the transaction/closing has to be complete.
However we are currently overseas and can't come back until end of June. Can we get that date extended say for another 2 weeks ? We'll have to look for a place to move to, pack up all our stuff and move. This will take way more than 2 weeks. Please let me know if you think Wells Fargo will allow it and what should i use as a reason for postponement ?
Thank you!
Flag Thu May 29, 2014
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