Hello. I had a conversation w/ Wells Fargo earlier today re: a short sale on a property they have foreclosed. I have all the required docs from America’s Serving Co. (the usual stuff) plus the stuff I added in for them. Our Purchase Agreement, HUD sheet, comps, recent news articles spouting doom and gloom about the market in my area and the economy here. Well, when I called to confirm reciept, etc. they said, “This property has already been sold. We can’t do a short sale on it” I kindly explained that, the property has not been sold, but has been foreclosed, and that I was attempting to purchase it from the seller while they were in redemption, but that the house isn’t worth what is owed, etc. etc. THey came back w/ the same line. THey don’t accept short sales on properties that have been foreclosed already, it needs to be done BEFORE foreclosure date.
My questions are these:
Has anyone heard that from them also? Is it REALLY true?
WHen you deal w/ them and Loss Mitigation, doing a short sale on a property in redemption, do you normally deal with ASC or Wells directly? I have about 4 different phone numbers, 3 or 4 fax numbers. I cannot see how they won’t even LOOK at my offer. I offered 170, they owe 220. House DIRECTLY across the street JUST sold (literally, as in last week) for $210, was listed at $240ish. It was foreclosed for $249ish. That lender put a new roof on, some interior work, etc. THe house sat for about 9 months (after redemption) and they only got $210. After repairs, realtor commissions, closing costs, taxes, transfer tax, etc, I figure they walked with about $173k. SO my offer should at LEAST be looked at. (I gave them plenty of supporting info along with it)
I’ve re-faxed my info to another fax I got from ASC, so it should be over there somewhere. I’m told it would take a couple days to post to their systems. I’m going to try back again on Friday.
If the house has been foreclosed, then it’s REO, the bank owns it.
The redemption period only applies to the homeowner being able to pay off the mtg plus fees etc, it has nothing to do with the legal ownership. Well it does sort of, because if the HO comes up with the money, ownership reverts to him, but only if he comes up with all the money.
If you want to buy the house, you need to deal directly with the bank, because the deed is now in their name.
Can you please give me some of the tele# you have for ASC.
I just got off the phone with them about a property I have submitted a short on 3 MONTHS AGO, they have yet to assign anyone to the file!!! The people I talk to @L.M., 866-248-5719 for the past 3 months tell me they will forward my messages to the supervisor. HA HA, yeah right. The vacant property has been vandalized twice and the a water pipe burst this January. I need a good contact # so that I may get the ball rolling.
Maybe I should call and tell them the property burned down? Would that get them out there? I guess I need to be more vigilant and bug the “F” out of them. Any other help is welcome.
JDS, not really, not in Michigan. I also am a Title Examiner, and I’ve done other deals just like this, only not with Wells Fargo. In Michigan, once the Sheriffs Sale has been done, the homeowner has 6 months to redeem (or get a short payoff) I really just think they are playing hardball… I’ve never seen one where they have a policy where once they actually foreclose, that they WONT deal/talk at all.
bovine - if its an REO, as far as I know, you have to deal with the Realtor. Banks won’t even talk to anyone unless its thru a Realtor here.
Well, we got through to a supervisor, and he more explained what the deal was. Their Investor (in this case Goldman Sachs) will NOT talk about a short sale during redemption. IMO, it is an INSANE way to do things, but to each their own I guess. They are GOING to lose money, unless the HO pays off their loan in full. (In this case, VERY unlikely) If they take that house back, and try to sell it on the market. They will be lucky to net what my offer was, let alone what they are owed.
Then you need to get the offer in first, and waaaaaaaaaay below what you’re offering now
We’ve figured another work around for the people. We’ll still make our fees, and they will keep their house. It isn’t DONE, but we think it will be shortly. I’ll update and let you all know how it shook out when it’s over.