Wells Fargo's 82% of appraised value guidelines

Short sale question and scenario: Debt on house: $265K. FHA mortgage held by Wells Fargo. Appraisal came up $300K. in a neighborhood where this style of new house cannot sell for much more than $225K. Wells Fargo will not accept less than 82% of appraised value, net. That means that they must net $246K. Talked with the negotiator/loss mitigator at Wells Fargo who stated flatly that they cannot go below the 82%. Are we missing any other strategies? Any other way to approach Wells Fargo with a new proposal? Thanks.

Focus on the appraisal. Wells is relying upon the $300k appraised value while you imply that number is unrealistic given the neighborhood and house style. Have you seen the appraisal? Are the comps truly comparable? If you can point out any deficiencies in the appraisal and offer a realistic alternative valuation maybe you can convince Wells to take 82% of the adjusted value.

What Wells Fargo (WFC) is saying is 82% of the BPO (i.e., appraised value). Sounds like a BPO should be no more than $225K, which means that WFC would except no less that $184.5. Have they ordered a BPO? If not, then I would come to the BPO prepared with comps < $225K. You can factor in repairs too. Let’s say you project the comps/BPO to be $210K, then you could offer WFC a net of $172K. That’s $53K in equity before fees.

BTW: the 82% is an FHA thing, not a WFC thing.