Home Buying in San Jose>Question Details

Hollie, Home Buyer in Tracy, CA

Wells Fargo short sale

Asked by Hollie, Tracy, CA Wed Oct 16, 2013

How long will it take to approve a short sale?

The seller has moved out. The listing agent said that the foreclosure was set on 10/29. Does it mean that we will know if WF will approval the short sale by 10/29?

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Answers

11
Hi Hollie. Thanks for the feedback. To answer your question, "If they don't qualify, why they submit the short sale to WF?". Many Short Sale Options have been abused in the past and used as a tool to postpone a foreclosure sale only. This may not be the case with your situation, however, there is another side.

The reasons why a homeowner would want to list a property as a short sale option vary which may include not paying the mortgage for months on end while the homeowner or another person occupy a house until it is taken in to foreclosure. Strategic default may present itself in a way where the homeowner knows they don't qualify for a short sale option but may hold the property as long as they can for financial reasons. Not all properties listed as short sale option can be approved or sold under a short sale option. Unless the seller's agent has the letter/package from a bank indicating approval to move forward you will not know for sure at this point.

Thanks for your understanding, and I hope I've added additional information to ponder. I do wish you all the best and hope it all works out.
0 votes Thank Flag Link Fri Oct 18, 2013
Many short sales are never approved, and a lot depends on the the completeness of the package put together by the seller.
0 votes Thank Flag Link Thu Oct 17, 2013
This is my concern. As the house is empty now, WF will make the decision very soon. Is that right?
Flag Thu Oct 17, 2013
Thank you all. If the market price is $680k with good condition, can we get it about $580k with poor condition? It may need $20k to fix it..

If WF take long time to approve the short sale, can I make offers on other properties now? I think if the price go up next year, WF will set higher price on that.
0 votes Thank Flag Link Thu Oct 17, 2013
That is going to depend on what the Broker Price Opinion of the house shows. If the BPO is above $580K then WF is going to want market value.
Flag Tue Oct 22, 2013
Hi Hollie. The most important question, does the seller qualify for a short sale option? And my second question would be why did the seller move out? Two questions that will set the stage, and depending on the answers, clue you in if the property CAN be sold as a short sale option or not.

In my experiences if the seller DOES qualify for the option it should not take more than few days to get bank approval letter/package regardless if there is an offer or not.

I've worked through many short sale options with WF in the past six years and they are terrific. The majority of the options I've worked through had been approved prior to listing properties on the open market. The most recent option I worked through was March 2013, an FHA short sale option. We again got bank approval (letter/package) before listing the property on the open market, got the home under contract and closed the deal within 35 days.

WF is straight forward with their approval guidelines and the documents they need from sellers to evaluate if they quaify or not for the option.

Please keep us posted...I think there is far more to your story. Thanks so much!
0 votes Thank Flag Link Thu Oct 17, 2013
"does the seller qualify for a short sale option?"

If they don't qualify, why they submit the short sale to WF?

"why did the seller move out?"

The seller's son was living there.
Flag Thu Oct 17, 2013
Thank you, Hollie:

My experience with Wells Fargo is similar to the experience that Monica Breckenridge has had. Wells Fargo will usually postpone a foreclsoure sale if they have an active short sale on the property.

With respect to whether or not home prices will go up next spring, my crystal ball is getting rather cloudy. However I can tell you that my experience with recoveries of the Real Estae market in the past is that the recovery usually lasts for three years. The current recovery is beginning the third year. Normally that would indicate that we will have another increase in real estate prices this spring, the third year of the recovery.

However interest rates are rising and will probably continue to rise. Increasing interest rates will stall a Real Estate recovery. Also the economy has been faltering and the government shutdown has made it difficult to get financing. These are also factors that could stall a recovery.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
Broker/Owner: The Butterfield Real Estate Firm
Cell Phone: (408)509-6218
Email Address: charlesbutterfieldbkr@yahoo.com
California Real Estate Brokerage license: BRE#00901872
0 votes Thank Flag Link Thu Oct 17, 2013
If you are looking to purchase the house just make sure that you stay in very good contact with who ever is now in charge of the short sale or foreclosure. They will have the most insight and will really be able to help you. If this is definitely the house you want, this person in charge should become your new best friend!

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Thu Oct 17, 2013
Thank you all. Do you think the price will go up next spring?
0 votes Thank Flag Link Wed Oct 16, 2013
Wells Fargo is the faster bank compared to other banks.
0 votes Thank Flag Link Wed Oct 16, 2013
I agree with Craig. Short sale approval time varies from bank to bank. The most important thing is that the agent dealing with short sale needs to submit sufficient documents to the bank and follow up with them.
0 votes Thank Flag Link Wed Oct 16, 2013
Wells Fargo will usually postpone a foreclosure if there is an active short sale with an offer. The file must be assigned to a Wells Fargo negotiator to be postponed and all the short sale documents would need to be submitted. You may not know by 10/29 if the short sale is approved. It is a lengthy process and depending on who is working the short sale can also determine how long the process takes. If the person working the file doesn't know much about short sales, it could take longer. If the person at the bank working the file is really slow and overwhelmed it could take longer. A short sale approval letter can come in 2 weeks and others have gone over 1 year. The average time is about 45 days to 60 Days. I would make sure your agent follows up weekly with the listing agent on the short sale to make sure there are no hiccups. I understand it can be quite frustrating being a buyer and not knowing what is going on with the house your buyer. Try to hang in there.
0 votes Thank Flag Link Wed Oct 16, 2013
Short sales can take weeks or months for approval. Each transaction is different, depending on the lender and the circumstances of the seller. With that said, I just had one approved in less than 3 weeks from the time documents were submitted. But, I understand the process and worked very closely with all parties involved to guide the process. The seller must submit all documents requested and then stay on top of the assigned loss mitigation person at the bank. You need to find out if the seller has submitted all requested/required documentation to the bank.
0 votes Thank Flag Link Wed Oct 16, 2013
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