Posted by Mark (SDCA) on April 07, 2008 at 12:50:03:
"and if the discount is rejected chances are I walk "
How do you walk when you ARE the owner? I assume you mean that you don’t record the deed?
Has anyone done a short sale with Wells Fargo? - Posted by Help with Wells
Posted by Help with Wells on April 02, 2008 at 11:12:07:
I’m getting ready to do a short sale with Wells Fargo and would love to hear from anyone who has done one with them before:
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What LTV were you able to get the house at? Were they willing to discount the mortgage?
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Anything in particular I need to know about working specifically with them?
The homeowner owes $100K and the house is worth $100K today. The house is in good shape on the outside and in average shape on the inside.
I was going to offer $50K, as that is what I would need to buy it for in order for me to get involved in this transaction.
Any thoughts would be appreciated. Thanks.
Re: Has anyone done a short sale with Wells Fargo? - Posted by Lauren
Posted by Lauren on April 21, 2008 at 16:48:00:
I’m working with Wells Fargo now to do a short sale on my home. The information they sent me says they will only consider a short sale if the sales price is for at least 70% of what is owed (this will include missed payments) and if the sales price is for at least 95% of the appraised value. Looks like your offer for $50,000 may be short. Your offer to be considered will need to be at least $70,000 if what they sent me is what they go by. Also you should probably work with some really good that has done these before because the more correct information you submit the more likely they are to consider your offer. Our offer package will contain the person’s credit score, the source of their funds, that they are putting down more than 20%. I don’t know if Wells will accept my short sale. They have been very helpful and I actually think for how busy they are they have been moving along quickly. They have lost my papers a few times, but I just re-fax and eventually it gets there. You should also ask the seller if they have been assigned a short sale specialist. Because the homeowner first has to prove they can’t pay by providing a budget and finanical information and that has to be cleared with a mitigation specialist. There are lots of steps the homeowner and their agent have to do. Best to ask them where they are in their process with Wells. Good luck.
Re: Has anyone done a short sale with Wells Fargo? - Posted by CaKev
Posted by CaKev on April 03, 2008 at 17:01:48:
50% a 1st mortgage. I HOPE YOU’RE PUTTING ON A GOOD CASE.They may short it to $90,000 or even $85,000 then you have to payoff that huge payoff amount. I DONT THINK PAYING $85k TO 90k for a $100k property is a good deal. What would it cost to bring the payment current $5k to $8k tops why not buy subject to then bring the payment current $8k out your pocket is better than $90k and you own the property either way.
Re: Has anyone done a short sale with Wells Fargo? - Posted by Natalie-VA
Posted by Natalie-VA on April 03, 2008 at 20:26:35:
CaKev,
I can see you’re a big fan of “getting the deed”, but I keep missing the benefit to this. In this case, the poster would end up upsidedown if he just got the deed, wouldn’t he?
Also, what happens in a judicial state when you get the deed, can’t work the short sale and it ends up in foreclosure? Do you (as the owner) end up with a foreclosure judgment in your name in the public records?
–Natalie
Re: Has anyone done a short sale with Wells Fargo? - Posted by CaKev
Posted by CaKev on April 03, 2008 at 21:41:02:
Natalie,
tting deeds
Yes you’re right I am a fan of getting deeds thats how I learned property acquisition when I was flat broke and barely making rent. In my opinion the benefit of getting the deed is I own and control everything, I dont have to answer to any homeowner and I dont have to worry about a homeowner backing out or selling from under me. Also I would never try to negotiata a short sale without it. The Deed is my license to move forward. What happens when your short sale isnt accepted by the lender what can you do if you dont have the deed? NOTHING! YOU JUST DID ALL THAT WORK FOR FREE.(and yes short sales are a lot of work)
In that last post sure they started upside down but they can turn it right side up with a short sale. With a good CYA letter I make no promises or guarantees to the homeowner and if the discount is rejected chances are I walk unless I want to make up the payments and use the proper exit strategy.
Thats a good question on what happens in a judicial state I’LL have to post that question for someone who lives in one of those states.