You know what's worse than a Wells Fargo short sale? A Wells Fargo short sale with two loans held by Wells Fargo. And do you know what's worse than a Wells Fargo short sale with two loans? A Wells Fargo FHA short sale.
A Wells Fargo FHA short sale is generally an approved short sale. It's sort of like a Wachovia short sale but not as streamlined. I'd say it's probably closer to a HAFA short sale because it can take forever to process and close. The main difference between a Wells Fargo FHA short sale and some HAFA short sales is the Wells Fargo FHA short sale is approved by Wells Fargo / HUD. I see some HAFA short sales being considered when the primary qualifiying factor is not present. And that's a total waste of time for everybody.
In a Wells Fargo FHA short sale, Wells Fargo / HUD will tell the listing agent how much to list the home for and for how long. The bank has already examined the seller's financials or will do so upon submission prior to receipt of a short sale offer. So, the seller already qualifies for the short sale. Wells Fargo will then dictate a list price. Except it will most likely be too high to attract an offer. I've seen that happen over and over in Sacramento. I think they pull these BPOs out of their butt.
In those situations, it might be a good idea for the seller to adjust the price. Because you know what? The seller still owns the home. Wells Fargo doesn't own it. And that's how to sell those short sales in Sacramento.
Will Wells Fargo accept less? You betcha, the formula is 88% net. So, if you're looking at an FHA Wells Fargo approved short sale, be sure to ask the listing agent if the price is approved. Just because Wells Fargo approved the seller for the short sale doesn't mean Wells Fargo approved the price. Those are two different components of a short sale. The transaction itself can be approved but the price, maybe not. If in doubt, ask your Sacramento short sale agent to explain it; don't just assume. List price these days means very little.
Photo: Big Stock Photo
---
Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
