short sale process

It has been a long process. But I received a phone call from my realestate agent and she stated that we were approved by wells fargo for one of the liens. Now we have to wait for the other. This where I am comfused there is only married couple that owns the condo. In the county records it states that put a lien on both husband and wife. Do we have to wait another 60 days for the wife lien to go through… I hops someone can answer this.

are you the buyer or seller? can you also clarify your question more?

I am sorry we are the buyer.

I am guessing here because of the amount of info provided. there must be more than one loan against the property up for short sale. in this case, both lenders or liens need to agree on the short. so say you have a 2nd with 20K and a first with 100K. you send docs to the 1st and they agree to the price of 1K paid to the 2nd. then you have to see if the 2nd will agree to 1K paid to them. the 2nd would be stupid not to take it because they will get nothing if the home goes to foreclosure. does this make sense?

this has nothing to do with husband and wife and how they are recorded with the county.

Here is the records. It appears both the liens are from wells fargo…

Deed Standard Over $350,000. Wildwood Crest
07-09-2007 D-3298-351

07-09-2007 M-4610-909

07-09-2007 M-4610-935

Lis Pendens-filed
06-11-2008 LP:15116

Lis Pendens-filed
06-11-2008 LP:15116
Notice Of Settlement Contract
02-12-2009 NS:98500 View Abstract

That is not entirely true!

If a “Second Trust Deed” lender refuses to except a $1k offer for settlement and release of lien it could be for good reason.

  1. If the lender excepts a “Short Sale” offer they can not go back and seek judicial judgement for a lien against the borrower and ability to collect the judgement through garnishment of wages for up to 10 years.

  2. If the lender excepts a “Short Sale” offer they can not claim the loss through an insurance company if the lender paid for and bought insurance against the borrowers loan account.

So there are a lot of good reasons a lender may refuse to except $1k for a settlement on a “Second Trust Deed”, Think about it!!!

Only a handfull of states have laws protecting borrowers and prohibiting a lender from seeking a judicial judgement. These laws are called “Non - Recourse” and protect the borrower.

But truth be told the states protecting borrowers are the minority!!!

I attached the records from the county. It doesn’t look like the owner has two loans right and if that is the case why would my realesate agent get a letter from Wells Fargo stating the the accepted the first lien and there is still one more…

Look at Bapm777’s posting.

It shows two Wells Fargo Liens on the property. It is possible that WF is the servicing agency on the second.

If you read the posting it looks like the owners turned over the property as “Deed in Lieu of Foreclosure” as the last posing on Bapm777’s posting is a mention of a settlement.

Two Deeds!!!

The last posting is my realestate agent did a title search on the condo… Before we actually have the house.
Will WF Take the same amount of time two months for the second loan or does it usually go quicker… Thanks so much for the help

The first and second should have been worked at the same time!

Somebody dropped the ball? The second will be much shorter if WF actually owns the paper! If WF is just managing the account and the original paper was sold, it may not be a pretty picture.

Cross your fingers!!!

You need to take your hardship package and put your approval letter from the first with it and re-fax it to the WF department who handles seconds!

I think you need to be on the phone daily on this to try to get it approved!

Start moving now!!!

You really should be negotiating both loans together under one umbrella if they are both serviced by the same company We;;s fargo in this case.

When I see a 1st and 2nd, I jump for joy as usually it is a smooth ride through the short sale process. There wont be any question about how much proceed the 2nd will be receiveing.

If the 2nd is with another servicing company, I give them anything from $1000 to $5000. It doesn’t matter what the 1st is reliesing to them…I keep it separate.

Tux Lawrence
Short Sale Journal

Gold River is right take a copy of the sellers hardship package along with the approval from the first stating what Wells Fargo is willing to give the 2nd mortgage and fax it over to the 2nd.

The 1st will usually dictate what they will allow the 2nd mortgage to receive. Someone needs to be aggressivly negotiating with the 2nd everyday to get the short sale approval.

I called my realestate she stated the 1st loan which is 382000 has been accepted and now it proceeds onto the 78000 2nd loan. I found both are owned by wells fargo. When wells fargo sent her the letter it stated the first lien was accepted and had the second lien underneath on the paperwork…
I am working with a realestate and she then calls another realestate that is handling the deal… So at this point is there anything I can do or are they doing the right thing to make it go through.

Just make sure your agent stays on top of the transaction. If the other agent is dropping the ball you have to push them to get it done. If Wells Fargo is the 1st and 2nd lien holder and they approved the 1st you should not have many issues obtaining the 2nd’s written approval and close on the transaction.