Recently, we did a short sale closing with Wells Fargo.\u00a0 To clarify, our client was in foreclosure with Wells Fargo, he was also being sued by Wells Fargo on his second mortgage.\u00a0 The plaintiff in both cases were the same – Wells Fargo, N.A.\u00a0 It is not unusually to be working on a short sale while the property is involved in a foreclosure.\u00a0 In fact, it sometimes helps the short sale\u00a0process\u00a0if the property is being foreclosed.<\/p>\n
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Through the mediation process with Wells Fargo, we were able to streamline the short sale process and eventually received an approval of the short sale.\u00a0 My client had attempted several modifications with Wells Fargo – all an exercise in\u00a0futility with no modification achieved.\u00a0 The short sale approval stated the minimum that Wells Fargo would accept as their payoff and also the amount Wells Fargo, as the second mortgage, would accept for payment of the second mortgage.\u00a0 Additionally, my client was offered the amount of $3,000 for relocation assistance.<\/p>\n
The closing went as smooth as possible considering the twists and turns involved in any short sale.\u00a0 The file successfully closed, and Wells Fargo was provided the required monies as outlined in the short sale approval.\u00a0 File closed, everyone happy, right?\u00a0 Not so fast.<\/p>\n
Yesterday, we received a call from Wells Fargo attorney stating that they did not approve the sale.\u00a0 Naturally, we provided all the documents to the attorney showing that in fact the sale was approved.\u00a0 Via email, we received a clarification, that\u00a0in fact Wells Fargo (the second Wells Fargo)\u00a0did not approve the short sale.\u00a0 Their\u00a0explanation: “Wells Fargo Home Mortgage is the First Lien Holder.\u00a0 Wells Fargo Home Equity is the Second Lien Holder.\u00a0 They are all part of Wells Fargo \u2013 yes.\u00a0 But these are two separate contracts, holding two separate interests.”\u00a0 Additionally, the email continued to\u00a0explain that while\u00a0Wells Fargo (the first Wells Fargo) allowed Wells Fargo (the second Wells Fargo) to received $16,500 as part of the short sale process,\u00a0 Wells Fargo (the second Wells Fargo) would only accept the sum of $8,000 in order to approve the short sale.\u00a0 You may need to read the last sentence again.<\/p>\n
So I patiently await the attorney’s response to our question.\u00a0 “So, if I understand you correctly, your complaint is that you received TOO much money as part of the short sale, and that you won’t approve the short sale that was already approved unless you receive LESS money?\u00a0 And that in fact, Wells Fargo is not really\u00a0Wells Fargo?<\/p>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"
Recently, we did a short sale closing with Wells Fargo.\u00a0 To clarify, our client was in foreclosure with Wells Fargo, he was also being sued by Wells Fargo on his second mortgage.\u00a0 The plaintiff in both cases were the same … Continue reading