will well's fargo allow a tenant to buy a short sale with an arm's lenght add?

Asked by Kay Anderson, Dallas, TX Tue Nov 8, 2011

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Ron Thomas, Agent, Fresno, CA
Sat Nov 12, 2011
You are not locked in to Wells Fargo,
even if the LISTING says that they have to qualify with W.F. to submit an Offer:
You cannot be forced to use any Lender.

As far as "Arm's Length" goes; being a TENANT is not a conflict of interest. Go for it.

Good luck and may God bless
0 votes
Patrick Fiel…, Agent, Plano, TX
Sat Nov 12, 2011
Hi Kay,

Assuming you are asking from the perspective of the tenant, and Wells Fargo is the the lien holder for the owner's property that is being rented, the best option is to shop around for your (the tenant's) own financing. The owner's lien holder really has no say where you obtain financing so long as the purchase contract and terms satisfies their requirements regarding the short sale.

In case you may not be aware, the short sale closing process can take much longer than a property that is not a short sale. In some case, the approval of the purchase (by the lien holder - assuming there is only one) can take up to 8 months and even then, they can change the terms of the purchase (but not your financing.) Make sure you consider the terms of the current lease (expiration and option to extend or go month-to-month) if and when you head down the short sale road. Also, make sure you use an agent with short sale training and/or experience. This will help to avoid further delays and pitfalls.

If you need any help, I have a resident mortgage broker in my office who will be more than happy to answer your questions and offer financing options. Just email or call me if interested

214-728-1650 / patrickfields@ebby.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Tue Nov 8, 2011
Probably as long as you are not related to the seller.
It can be tough and expensive though as well as risky.
There may be better options.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Nov 8, 2011
Best to refer to a mortgage broker who is handling your loan application

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Helen Karuba, Agent, Dallas, TX
Tue Nov 8, 2011
Is Wells Fargo the current holder of the loan or are they your lender? If they are your lender, the type of property really won't matter as much as appraisal value, LTV etc. If they are the current lien holder, they, and you, will have to jump through the normal hoops for a short sale. Those aren't hoops of fire...but there are ways a short sale is structured. At either rate, they are going to want you to have a Realtor. This protects them as much as it does you.
Best of luck
Helen karuba ABR, SFR
0 votes
Kim Nwachukwu, Agent, Irving, TX
Tue Nov 8, 2011
Really good question. Not sure I would use Wells to do it though. A smaller, more private mortgage group would probably be better able to attend to the details this transaction could need.
0 votes
Sally Grenier, Agent, Boulder, CO
Tue Nov 8, 2011
As long as you're not related to the seller, there shouldn't be a problem. Make sure you have a Realtor working for YOU as a Buyer's Agent.
0 votes
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