Wells Fargo will work with you in a short sale. However, just as with any other lender the process can be tedious at times. Here are some tips to avoid a bit of the hassle.
Situations that help!
As a general rule of thumb if you in debt far more than what your house actually costs then you qualify for a Wells Fargo Mortgage short sale. However, this is applicable if you have a single mortgage currently. In case you hold two mortgages and both happen to be with Wells Fargo then you will find it little easy to figure out the situation. Even in cases where you have loans with two separate lending agencies you might qualify for a Wells Fargo short sale. However, this will happen only if and when you present a clear case that you cannot afford the current mortgages. Also when you hold mortgages with different lenders (not Wells Fargo) then the process of getting a short sale through them is much tougher. That makes sense logically as Wells Fargo is incurring a loss which they didn’t take on in the first place!
You do not get the cash
When you perform a short sale through Wells Fargo you are not going to get any of the money (see wells fargo cd rates). Whatever amount the buyer has promised to pay will all go to Wells Fargo. This is in spite of the fact that the amount quoted is much lesser than what the home is worth! However, short sales are a convenient way to get away from the rigors of mortgage payment. At least you do not have to end up paying the entire amount and it is any day better than a foreclosure which can be disastrous on your credit score!
Negotiation is possible
If you are worried about your credit score getting affected by a short sale then there is hope now. Wells Fargo allows you the option of negotiating with them to prevent a foreclosure from leaving a black mark on your credit report.
Getting an agent is a great idea
Chances are the short sale process will be a long drawn out affair. Therefore doing it all by yourself and negotiating the terms can be a very harrowing experience. The best way to avoid this is to hire an agent. This agent needs to be motivated to go the long distance with you and present the case in your favor. Often short sales take really long to materialize and investing in a good agent can work to your advantage.
Keep a record
Whenever you have any conversations or written communication with Wells Fargo make sure to keep a record of it. You could tape the conversation or note it down. Also note down names of personnel whom you have spoken to at Wells Fargo. That way if they choose to deny anything they have promised you have evidence. It will also reduce chances of dissimilar facts being stated by different agents in Wells Fargo.
What I Did In My Short Sale
What I did (hiring a real estate agent with short sale experience) worked for my situation. It may not for your short sale, but I found it the best option. Working with a real estate agent you at least can get a background on the person, and if they work for a larger brokerage you know they have resources to help you. Think short sales are hard for you? They are equally as hard on the real estate agent! Getting a short sale deal done (especially right now with the overwhelmed lenders like Countrywide) takes alot of work. I do think its the best option vs. foreclosure though. You can also read my 7 steps to a successful short sale guide.
You Need An Experienced Short Sale Agent!
From my blog here I’ve developed an extensive network of real estate agents that have short sale experience. If you’d like a referral, fill out the form below and I’ll have someone available in your area to help with your short sale ASAP.