Since I am short sale broker here in San Diego that does quite a bit of volume, we are constantly trying to monitor the bank trends and changes, when it comes with working with each bank. We recently did an in office study of Wells Fargo short sale update and their short sale process which also includes Wachovia, since they were taken over by Wells Fargo.
Currently Wachovia is a bank that operates its short sales completely different here in San Diego than Well Fargo does even though they are owned by the same company. We find this to many times be the case with large banks that acquire other lenders. Wachovia is a bank that owns many of its own loans that come from World Savings and Loans, Golden State Loans, as well as loans created under their own name. They typically can get a short sale done quickly and smoothly in 30 days. They require the homeowner to have an in person meeting to go over their financials, they do a home inspection and then set a price for the home to marketed at. Once an offer is received they can process it fairly quickly in the time of 7-14 business days. All also participants in the government short sale program (HAFA).
Well Fargo on the other hand is a bit different when it comes to dealing with short sales. Wells Fargo recently started using the online Equator system for its short sale files, as other banks have already been doing. This facilitates a quicker file, and Wells Fargo typically have representatives that are usually easy to communicate with. When there are two loans involved with Wells Fargo, they will always work independently of each other. Meaning you will have to work with both loans, and talk to two different decisions within the bank. The seconds on Wells Fargo seem to go much more quickly on the short sales here in San Diego and Southern California.
On 2nd loans and HELOC’s with Wells Fargo, they are starting to ask for money from homeowners in the form of a cash contribution in order to allow the short sale to be completed. This can be offset in many cases by the lack of payments that the homeowner may have not been making so it could still be worth it in the end. The cash contributions are not ridiculously large and you should talk with professional broker who has worked with Wells Fargo many times to determine how your case my play out.
Wells Fargo is allowing the short sale process to get started without a current offer on the property to determine the homeowners eligibility for a short sale and the government short sale program HAFA.
Wells Fargo will typically issue a preliminary short sale approval BEFORE their final one and usually will postpone foreclosure dates if there is an offer on the table and it hasn’t already been postpone numerous times. Wachovia on the other hand will NOT postpone a foreclosure date if one is set to allow a short sale unless the homeowner is eligible for the HAFA Program.
If you have a loan with Wells Fargo and are considering a short sale, be sure to have a consultation with someone such as myself who has done literally hundreds of short sales with them and is in direct communication with the executive office over at Wells Fargo.