New Regulations regarding short sales w/Wells Fargo

November 28th, 2010 in CDPE by cdpe

All short sales with Wells Fargo or Wachovia should be aware of some new regulations.

With much speculation on this subject in recent weeks, DSNews reported new rules regarding Wells Fargo short sales when foreclosure is within 30 days. The bank’s new policy will allow for only one foreclosure postponement given the following criteria:

* Wells Fargo has an approved short sale sales contract in hand (if necessary, approvals from junior lien holders and mortgage insurers as well);
* buyer has proof of funds or is pre approved for financing; and
* the short sale can close within 30 days of the scheduled foreclosure sale.

Beyond these restrictions, Wells Fargo did note that investors may vary in what they allow, and some states require the courts to approve any delay.

If you find yourself against the clock with a Wells Fargo short sale, there is still hope. The bank expressed its willingness to address situations outside these qualifications on a case-by-case basis.

~ by Jim Lawson on January 10, 2011.