Wells Fargo Short Sales – What You Should Know

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.

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  • kristen

    Hi Debtkid,

    I love your advice. It makes you feel better knowing you are not the only one going through all of this.

    I really just want an outsiders opinion that is not related or a friend of ours. Because sometimes I think they say what you want to hear. I know you are not an attorney or all of that legal mumbo jumbo.

    My husband and I bought a 2 bedroom townhome in California for 425,000 we had a plan of being there 2-3 years taking our equity and buying a small single family. Well clearly it did not work out as planned. The market took a turn for the worse and now we are deciding between keeping and being stuck there for I dont know how long, short sale or foreclosure.

    The bank said they would not work with us on our payment so we moved out of the property in a small apartment and now all of the sudden they are willing to work with us because we are 2 1/2 months behind on payment. We have a first with wells fargo and a 2nd with bank of america.

    We have two small kids now and we do not know what to do! The bank has said they will lower the payment and we would be paying about $400 more than our rent in our apartment but we would still be home owners and have the write off. But I am also concerned because we are 200k upside down and if we go back it seems like it would have to be forever and we already have out grown the house. But on the flip side our credit will be ruined and I dont want to live in an apartment forever either.

    No one seems to be able to answer our question. If we short sale what are our financial obligations vs a forclosure. I know either way our credit is ruined for a period of time I am more concerned with our financial obligation in the long run.

    Thank you for your time reading this and I will be following your blog and passing it on.

  • joedakota

    Your credit will be hurt less by going with the short sale vs. going with the foreclosure. Short sales are more difficult when you have a mortgage with two different lenders. You may also be asked to sign a promissory note to one or both of the lenders for a portion of the difference between the selling price and the amount owed. If it comes to that, you do not have to agree to it and you can let the bank foreclose. But i do not think it will cost you any money to give the short sale a shot in the meantime. I would take the mortgage modification, move back in to the townhouse, pay the $400 less per month while trying to sell it using the short sale process. If in the end, you are asked to make up the difference, refuse, stop making the payments and let them foreclose. Then go rent a house, sub-let a portion of it, and try to save some money until your credit is restored. Probably about 5 – 7 years.

  • Luz

    I understand Wells Fargo issues a 1099 on any amount below the balance of the mortage loan. Ex a person owes $299,000 and the house sells for $290,000 they issue a 1099 for $9,000. My questions is this: Are closing costs also included in a 1099?

  • george klover

    I am a realtor in sheboygan,wi. I listed a foreclouser that the seller has a mortgage with wells fargo I listed it with the bank possibly doing a short sale I now have an accepted offer from the seller please advise me who to contact at wells fargo about a short sale.thank you very much george klover 1-920-254-2790 or 920-458-8887

  • Hatin Wells Fargo

    After over two months of paperwork (sending and REsending), phone calls, hiring an agent, and an attorney, we were denied a short sale. But WAIT! First we were told yes, by the mortgage dept., and then the equity dept. (we have two loans). We have a buyer, the bank would only lose 15K, and after months of waiting, we were given a yes. The very next day, the supervisor of the person who told us yes called to say NO. Wells Fargo would not be participating in a short sale with us because we had a perfect credit score. We are living in Japan with the AirForce. The house has been on the market for over two years, and it was occupied for one year by a squatter which costs us 1000′s in attorney fees. But none of that matters because we have a perfect credit score. Wells Fargo strung us along, and then lied to us. They ARE NOT easy to work with, and we were ignored by more than one employee. After we were told to call them and given a 48 hr. deadline to get back with them. You would think that they would be willing to share some of those bailout dollars with someone who is working for their country.

  • Hatin Wells Fargo

    good luck with that-they’ll screw you up one side and down the other……

  • http://www.brettsellshouses.com Brett Tousley

    I must admit that Wells Fargo isn’t the worst bank I’ve dealt with in a short sale situation, but I understand the frustration. The process takes way too darn long no matter which bank you are dealing with in my opinion.

    But if you are persistent and patient, a short sale is one possible cure that may help homeowners in financial trouble.

  • Eury O.

    Real Estate agent in Orlando, FL currently working on a short sale with Wells Fargo. Its been a nightmare. I had refax papers to them too many times. Offer submitted early September, BPO was done in October, negotiator worked on it, after calling every week for status, in early November, I was told file was closed and transferred to loan modification dept. without no one ‘s authorization or conscent, including the sellers. My seller had to write a letter asking to transfer file back to short sale, and guess what, they want the entire package again, and start all over from the beginning. We had sent package more than 4 times since November 11, I called 12/18 and spoke to a Lisette and she told me that they have all papers needed and that file was going to be assigned to a new negotiator but I called today and another different rep told me that file was closed because not all papers requested were turned in. I just dont know what else to do. Buyers will hold till mid January. I lost the battle with Wells fargo. I thought Bank of America was bad.

  • http://www.my5280homes.com Ben G.

    The comments about Wells Fargo are interesting. I am a REALTOR in the process of completing a short sale with them and found Wells to be nothing but professional, courteous and timely in there dealings with me. I had written short sale approval within 45 days of my short sale package submission. We are in escrow and are scheduled to close at the end of next week. All told, I will have the listing for 4 months, start to finish.

    This is much better than a Bank of America deal I am currently negotiating where my paperwork has been sitting on their desk for almost 3 months without anything happening.

  • Manny

    Im currently in the process of a Short Sales with WFB. On New Years Eve, my realtor advised me that my first loan (w/ WFB Mort) is asking for me to sign a $20k promise note or provide $10k. My second (w/ WFB Equity Line) is asking for 10% of the lost (Approx. $8350.00). Per the buyer’s contract, they set aside approx. $3300.oo for the second loan. I dont have anything else to give! Should I tell them take it or leave it? Any help will do!

  • Lucy

    Ben, I couldn’t agree with you more, We had to do a short sale on our home due to my husband’s job relocation and Wells Fargo was very professional and on top of everything, the whole process took only 3 months, we were amazed how fast our home short sale was done in such of short period, Our credit reports took a small hit but nothing even close to the way we thought it was going to affect us, I must say I was very happy with Wells Fargo and hope to use them again in our next home purchase.
    Exellent post :)

  • Tawana

    Hey Lucy. Did WF request documentation of your husband’s relocation? I am planning to relocate due to the employment situation here in GA, however, I am not sure if they will ask for any employment information since I do not have one there as of yet. I am employed as a contractor here in GA but am looking for a permanent position which I believe I could obtain up north. Thanks

  • Perkins

    The traditional realtor short sale business model is broken. It works only about 25% of the time. You need to cancel your listing agreement and work with an ethical investor who knows how to overcome the lenders request for promissory notes. I know how to do this. Most realtors are poorly trained when it comes to short sales. If I can help contact me at [email protected]

  • http://www.delcoms.com doug liser

    We’ve studied the process and watched the results. There seems to be very few reasons why an owner would want to get involved with a short sale. Others have done studies on the effects to credit records and there is almost no difference. My advice — live in the house until you get evicted and save your cash. A FC in California leaves you legally clean and done with the affair while a short sale can leave the lender with rights to deficiency payments. My wife has a good friend that went through the SS process and closed without a lawyer. Now she has no house but the bank managed to reserve their rights to collect — who knows if they will but this is always hanging. She would have been much better off living for free instead of wasting time with open houses — then leave with the stove and dishwasher.

    Those that delayed the FC may now have a new problem to contend with — the phantom income from a forgiven debt. The tax relief law expired on December 31st. I’d guess it will be extended for 2009 but it hasn’t yet.

  • http://www.atlantashortsalelistings.com Joshua Jarvis

    I love wells fargo short sales. They are typically prompt and do their due diligence and are even somewhat reasonable. Most wells fargo negotiators are even somewhat professional!

  • Need solid advice

    My husband and I are divorcing, somewhat amicably and are struggling to find a way to keep our home. We are upside down in like most other people and neither will be able to afford it post divorce. This is the only website that I have heard positive feedback regarding wells Fargo and dealng with them. We are current on our payments with no outstanding debt. We have a traditional 30 yr fixed at 6.25% and both have credit scores over 800. What are the chances that wells will work with us on a short sale, and being Michigan is a recourse state that they will not go for a deficiency judgement? In addition, would the difference be covered by the debt relief act so we would not have to pay taxes on it? I’m waiting on an appraisal, but I’m figuring the minimal loss will be 60-70k. Any input would be greatly appreciated!

  • Matt

    Hi Lucy-

    Would you mind if we could get in touch directly? I’m going through a similar situation; Im being relocated for work and Im wondering if Wells Fargo will work with me on a short sale due to the relocation constraint.

    my e-mail is [email protected]


  • Just screwed by Wells

    I have been in the process of doing a short sale for a few months on a house that I purchased to live in but have moved out and have been renting it for a couple of years, losing about $300 per month. I have taken 50% cuts to income since 2007, which means that I made less than 25% of what I did in 07. My current mortgages are Citi 1st, and Wells 2nd. Citi came through and approved the deal, then Wells told my attorneys office that everything had been approved, without deficiency, about 3 weeks ago. So I moved forward did the rest of everything that I needed to do and had the buyer order the appraisal at my attorneys direction. Yesterday, I received a call from Wells stating that they would pursue a deficiency judgment against me. This kills the deal. I was ready to move forward with my life without this house that I have lost money on every month in hopes of the economy turning around at some point, but after living off my savings for the better part of 2 years I am compelled to go through BK per my attorney. I can’t believe that Wells, being 2nd lien holder, on a home that is 80k upside down is doing this when Citi, the 1st lender approved the deal. The way the deal was set up was to have Wells receive about 5800. I just sent in my cancellation for auto pay for Wells, now they won’t get a thing.

  • John Johnson

    Hey look! A Wells Fargo rep!

  • John Johnson

    Follow Doug’s advice. Stay in the house as long as you can and save up your money for a deposit on a rental, be it another house, duplex, apartment, etc..5-7 years down the road, if you can put money away within that time and depending on what the housing market is doing you may be able to buy again. That is if you want to play that “American dream” game again. I found out that home ownership is not all what it’s cracked up to be. The tax right off is not all that great unless you’re raking in the big $$$$$$ and you can’t just up and move if you have some lousy neighbors. Oh wait, there is a plus…you can paint the walls of your home any color you’d like! I’m going on month 3 of default.

  • Stacy

    We bid on a short sale in December. Three weeks ago, Wells asked us for an updated pre approval, and we have been told by our realtor that the bank and the seller have reached an agreement. We are obviously in the final stages of the short sale. How long does it normally take Wells to present the written contract of sale to the buyer? My realtor and the seller have been calling Wells daily, only to be told repeatedly that Wells is “working on it.”

  • Melissa

    We are trying to get a short sale on a house and wells fargo is the lender. We dont know how much to offer house is assessed at 409,000 but does have some water damage in kitchen/and up stairs bathroom and cracked tile all through out the house and the house was never winterized. For people who have gotten approved how much lower was your offer then the asking price??

  • Peggy D

    We made an offer on a short sale house on October 25. The house was originally listed in June for $375K & the price was reduced a month later to $350K. Apparently, there had been a lot of interest in the house, but no offers until ours. We offered the original asking price, thinking that would put us in a better position to get the sellers’ lender’s approval (Wells Fargo).

    In our offer we asked for bank approval within 30 days & the sellers countered with 60 days. Three weeks later the bank comes back & says they need 120 days. I don’t know how they count 120 days, but the new deadline was February 28. By my count, that was 124 days since we accepted the sellers’ counter offer. Come February 28, they (sellers/bank?) asked for another 45 days. We countered with 30 days with the decision to be delivered by March 30 (I know how to count!). The sellers accepted that. We got word last week from our agent that the coordinator says the bank has finally ordered the BPO. We assume that means Wells Fargo & the sellers have come to an agreement.

    We need to move to a one-level house & are not just trying to buy a short sale because it’s at a “bargain price.” We’re still actively looking at other houses, but there are very few in our target area & price range with the square footage of house & land we need. I guess if they want another extension we’ll give it to them.

  • arlie david mckinnon

    I have an offer in on a short sale home and have been waiting very patiently for several weeks now with no word or status…….. no nothing. I’ve been told by three different realtors that Wells Fargo is the “worst of the worst” when it comes to service conerning real estate. I’ve had several accounts with Wells for many years and believe I deserve better service than what I’m getting. Wells certainly wants prompt action from me when it comes to doing business, why can’t I expect the same in return. Can you please help with my short sale offer. I can stand my offer being rejected, I just need a answer, yes or no, how about some statgus to let me know it’s even being review……….. and please no brush off. Arlie David McKinnon

  • Julie Cipolla

    Here’s your worst case scenario: I’ve been trying to buy a short sale since — wait for it — July 20, 2009. 9 months! I could’ve had a baby by now, fer god’s sake. Admittedly, it was a Countrywide mortgage that went to BOA from July until Thanksgiving, so that was a 4-month purgatorio. Now Wells has had this puppy for 5 months. I have 2 weeks to decide whether to jump ship & buy another house to get the $8k tax credit. Patience, my @$$. I may see Jesus before I see Wells approve my offer. Unhappily yours….

  • Lynne

    I am a Realtor in FL. who has a shortsale listing. The mortgage is around a $100,000 and got an offer for $65,o00. Wells Fargo was great and everything was moving along until this week when the negotiator said that in order to make it work the MI (Mortgage Insurance ) from the seller. If the seller does not come up with the $$$ the bank will proceed to foreclosure, I cannot understand them allowing the property to go to foreclosure on $3600. The bank never countered the original offer or asked for a higher offer. How is it that the mortgage insurance company is now driving this transaction. Can anyone explain how the Mortgage Insurance company can request a payoff like this?

  • Sofia

    We have a 1st and 2nd w/ WFB. We just listed our property in Nevada for sale and have a buyer who is willing to put an offer. It would be a short sale hopefully. Now… we are not delinquent on any of our mortgages. We do have and can prove hardship. Will Wells Fargo approve a short sale w/o any late payments?

  • Michela Lee

    I submitted my short sale to Wells Fargo on 4/22 with an offer for someone to buy my house. I just have one mortgage with Wells Fargo. How long will it take to get approved or disapproved? The difference for my home is about $100,000. The person buying my home wanted to buy my house or at least start the paperwork by the end of May. I also can’t afford to keep paying mortgage. I want June to be my last month.

  • ASB

    I’m going through the same thing right now. Husband is military and we’re being transferred in July. The house is for sale, but no offers yet. When I called to get general info on a SS from Wells on 3 different occasions… I had 3 different people there tell me you have to be atleast 30 days delinquent before they approve your package, otherwise it will be denied. I’m not sure how accurate this is, but if it’s right… it’s just plain STUPID! That’s what really hurts your credit score to begin with. I’m in the process now of trying to get to the bottom of it.

  • Dena

    We are 7 months delinquent with my mortgage payment. We had a considerable loss of income. Wells Fargo has called every single day to harass us. Eventually we just unplugged our phone. Originally I told them that I would like to do a Deed in Leu of Forclosure. Their reply was, “What’s that?”.
    Why can’t people in our situation just get together with the bank, prove the loss of income and inability to pay and come to some immediate solution? Yelling at me won’t make money appear out of no where. Trying to scare me doesn’t accomplish anything. I’m laying everything I have out on the table and they are just messing with me. What happened to business ethics?
    A month ago we were approved for a home modification program loan. It was still $800 dollars per month more than we could afford and not much lower than the original payment. I told WF we could not afford that payment. They once again raised their voice and said that since we were approved for this loan, we could afford it. It was, after all, based on 31% of our gross income. At that point we went to see a financial counselor (if WF told us we could afford this, I wanted to know how). She said that is was indeed $800 over our budget. When WF called again, I told them this and got the same 31% argument from them. The line they used this time was, “We told you what you could afford!”
    Today they say we can do a short sale. Of course I do not trust these worms at all at this point and feel like I’m just setting myself up to get screwed. Is there any point to doing a short sale? Before, we were offered a govt program deal where they would give me $3000 dollars to help with the move if we short sold the house. Now I’m told that since we refused the modification loan we would not be eligible. Then another WF person contradicted that.
    Should we just abandon this place? Should we file bankruptcy? I would like to sue them for emotional distress and abuse. I feel like I’m dealing with the slimiest of the slimy. No, I KNOW I am. How do these people live with themselves? Have they sold their souls?

  • Lisa

    Thought I would chime in on our situation.

    My husband I put our home up for sale in 4/2010. After 3 months of no offers…We applied to do a Short Sale with Wells Fargo in July of 2010. We faxed all the paperwork they required on 7/7/2010. We received our approval for short sale with a closing date of 10/7/2010.

    Our mortgage is 478,000 and our offer was for 440,00…So I am sure this is why they accepted so quickly. The offer was strong and the buyers have a good credit score with 25% down.

    Wells Fargo has been great…Calling once a week to keep me updated and emailing our realtor. I also must add that our realtor is awesome and submits any paperwork the request within 24 hours of them asking.

    My advice for anyone attempting a short sale is to have strong offer ( a weak one wont be accepted), a good realtor who is on the ball and willing to put the time in to get this closed, and you yourself must be quick in faxing or emailing ANY paperwork they ask for..They typically want it right away..or they threaten to close your case.

    Good Luck!

  • rob anderson

    Let me guess, you were tricked by evil lenders into a mortgage you couldn’t afford in the first place…

    Give me a break

  • Moe

    I am a Real estate Broker & I beleive to do short sale with wells fargo in the state of California is the easiest compare to the other banks. Need Help? let me know

  • Michelle

    Were you late on your mortgage? We put our house on the market some time in June. Have a strong offer with 25% down and was submitted late July. They just reviewed our paperwork about 2 weeks ago and asked for updated financials and contract to be wet-signed. We got the 2nd assigned to a negotiator, still waiting on the first. REALLY hoping this can be completed by end of the year. We are current on our mortgage, but have high debt and barely making the payments and only because my husband is killing himself working 80 hours a week. How is your process going so far? I’m not sure how much my agent is calling the bank….getting a little concerned.

  • Doyle Brickey

    We had an accepted offer signed 3/20. All docs in to WF 4/6. Still nothing from WF. The sellers had 2 mortgages. WF is primary. The 2nd mortgage has agreed and signed 3 extensions. We were told on 6/4 it would be 30-45 days. Still nothing. On 8/28 we were told 24/28 hours. Still no word. Our financing has been in place since April and has been extended/redone 3 times. We offered 120k house appraised at 130k. So that shouldn’t be an issue. We called the short sale Dept at WF and was told they would only speak to sellers. The seller called and was told they would only talk to agents. Our agents calls are not returned. We started the process with our states Attornet General for an official complaint. If we don’t close by 9/30 we lose the $6500 tax credit :(

  • Chad


    We are currently short selling our home in California through Wells Fargo. We were told last week that they accepted the short sale, with our current buyers. Things are going good now. One question, we are current on our mortgage payments. We were told by Wells Fargo we needed to be 31+ days behind in order to qualify for a short sale. But they have already said we are approved for the short sale. I am active duty military with an assignment overseas and not returning to CA. This was my reason on my hardship letter. I am wondering if they accepted it based on that, and not because we are behind and cannot afford the home anymore. Any thoughts or suggestions? Thank you!

  • June


    I am not Moe, but I wanted to respond just in case you still needed assistance. Your situation is unique, but I would caution you to check with your real estate agent, attorney and/or title company to verify the conditions of the approval and what the steps to close are. Many times the approval has specific dates and requires a settlement statement (HUD1) to be approved by the bank before closing. Any of these reviews by the bank can lead to a change in the approval. Best advice…..get it closed ASAP. Some banks will allow a short sale without being late, but it’s best to get as much data as you can from the people involved in your transaction.

  • Michael St. John

    I’m in the final days on closing a short sale as the Seller. Well’s Fargo is asking me to pay $7100.00 in order to close escrow. This is the original loan and I have no second. I have not the mortgage since April. I working with American Family Shortsale and they said it’s legit for Wells to ask me for this cash. I have several friends who said Wells Fargo can’t ask me to pay anything. Any help out there from a professional?

  • John

    Stacy, I have the same questions. I have been awaiting for better then 5 months now, have resubmitted a pre approval and VA certificate. Still waiting for bank approval. Anyone one have any ideas as how much longer this might take? I am currently under contract with the seller and waiting for the sellers bank approval.

  • Mark M

    I completed a short sale with BOA and Wells Fargo in Sept 2010. BOA had the first, Wells had a second and third mortgage on the house located in FL. Wells got some money from short sale that was applied to the second mortgage, the third HELOC (Wells) got nothing. Today Wells Fargo called wanting to settle the second loan only. I made an offer and am waiting to see if it is approved. If the $7K payment wipes out $50K or $100K in debt, then pay it. I am on the hook for $100k and am hoping to settle for 10 to 20 cents on the dollar.

    I think the banks are taking short sales more than last year. I closed in 4 months and had 3 loans so I know it can be done. As long as you have a hardship, they will work with you. They will also come after the difference so be prepared.

  • Mike

    My House is 170k upside down and I have had my hours cut back at work. So Far I have been turned down 3 times for a modification with Wells Fargo and am now 3 months behind.

    My 1st is with Wells for 415k, 2nd is with Chase (Heloc) for about 55k

    Thinking about either a short sale or foreclosure

    Not real concerned about my credit, more worried about having to owe 170k on something I don’t own anymore… sounds like it might be better to just let it foreclose…

    Question is, If I do the SS will either Wells or Chase make me obligated to pay back the difference that I owe which could be a total of ~170k???


  • BW

    Make sure you do NOT tell Wells Fargo that you are taping the conversation, they will immediately stop talking to you. Which I found VERY interesting…

  • jon bill

    wells fargsoa real arse hole to deal with i had a ALLLLLL cash offer of 140k on ahome thats probably not even worth that much in red neck ville north idaho and they whined and cried anmd wouldnt go below 150k and told my buyers decide in 2 days or nothing their evil devils a candace stow shes a miserable son noma beach as if they ahve the upper hand so now my buyers will wallk thnaks wells fargo you fing creeps 8 months working my rear off to make this a reality freddie macs a peice tooo i hope they all go bankrupt and should be allowed too their miserable we bail em out and they wont help a soul

  • jon bill

    well sfargo going to eat 125k if not more and im notpaying their god dman credit acrd period as i had 2500 relocation in this deal to get the card paid off f wf and freddie mac only good thing about hicks ville idaho is they get what they get and cant rhwo a fit and come after me heck i may strip the bstrd

  • Mike

    Does anyone know If I were to do a short sale on my house as opposed to letting it foreclose, will I get a 1099 for the deficiency?

    Wells Fargo has been stringing me along for over a year now and just keeps denying modifications.

    I’m in California

  • Craig

    What are the chances of getting a SS with WFB without a hardship? Strategic Default?

  • Rita

    Okay, I need to know if anybody has come across this problem? Sold a home via a short sale a few months ago, BofA had the first and Wells Fargo had the second. The first and the second agreed on the short sale amount but, Wells Fargo insisted on a promissory note for the difference but, with the explanation that they would probably not collect on the amount. I was desperate and agreed to sign the note. Well, they are now suing me for the entire balance of $180, ooo. As of today, Wells Fargo Attorneys have agreed to settle. Before I make an offer I need to know if anybody has had this type of experience with Wells Fargo and what is the lowest amount you think they will accept? I was hoping on a nickel on the dollar. Pls help!

  • Caren

    Wow.. What a great site and interesting circumstances. I am a Real Estate Broker in San Diego, CA and I was just checking to see what the current “word on the street” is about Wells Fargo from people with current experience. I had my client call Wells Fargo to request a loan modification for a “2nd Home” which is no longer afffordable due to loss of employment. So, Wells recommended that he list the property for sale as a short sale and sent a Short Sale Package to him. He promptly completed the package and I listed the property. Within 4 days, Wells Fargo called to CONFIRM receipt of the short sale package! OK.. That was GREAT! Next, they called the following week to indicate that a “short sale negotiator” would be assigned and to indicate that when an offer comes in that they would need 3 things. Net Proceeds estimate (from escrow), Copy of the contract and proof of buyers funds. All very reasonable and smart requests to be submitted at the time of an offer. They are even calling in the evenings! I can tell you that this is the way short sales should be handled… Respectfully and acknowledging the receipt of paperwork.. (just as it was when they were lending the money out to the borrower). Its a refreshing START. We just received what should be an acceptable offer and tomorrow our escrow officer will put together an estimated Net Proceeds Sheet. My client has remained CURRENT on the mortgage, taxes and HOA dues… I don’t think that he should be penalized for remaining current.. and hopefully, Wells will feel the same! Penalized meaning that many have claimed that you must be “in default” for a lender to consider a short sale and one post earlier mentioned that they were in the Military and current. So, I’m hopeful that we wouldn’t PENALIZE folks who are trying to stay current despite their difficulty in doing that!
    So, a couple of other KEY POINTS. Folks, PLEASE PLEASE have any attorney and your CPA review the short sale lender which any lender gives you! I make my clients do this. It is always GOOD to speak with an attorney and a CPA.. before you list the property, before you accept an offer from a BUYER.. but, assuming that your property is listed subject to the short sale lenders approval (and I would recommend in the sales contract, subject to the sellers written approval of the terms and conditions of the lenders short sale approval). This particular document in MY OPINION may seem like a no brainer, particularly for the woman above who SIGNED a promissory note for $180k and now is being pursued by the lender and/or collection agencies.. IF I could offer one piece of valuable advice. .. REALTORS, are not attorneys and are not qualified (at all) to give legal advice… This is a big deal.. SEE an attorney… I’m 25 years in the business, and I WOULD SEE AN ATTORNEY and my CPA before I would agree to anything in a short sale letter..
    ALSO: Might you know there are “other” issues right now that may be good for you to be aware of… IE. Is your lien enforceable?? Does the lender have the RIGHT to foreclose (Ie. the original mortgage note that we have recently heard so much about). I’m not a person who SHIRKS my responsiblities.. but, you have the right to be INFORMED in your decision making and so you should know from an attorney, what “MERS” is. You should be aware about RECOURSE versus NON-RECOURSE loans.. ITS REALLY REALLY REALLY important.. To the woman who owes $180k loan.. If that was a purchase money loan in the State of California.. you may have been better advised to let the lender foreclose…
    On the deed in lieu of foreclosure on the 7 Steps.. I saw my first Deed in Lieu on Tax Rolls and I was impressed.. To my knowledge a Deed in Lieu is that you are giving the lender the deed to the property in lieu of them foreclosing. THEY have to be willing to accept the deed… and they often want 90 days on the market before considering that.. Obv iously, if you have equity they will be more willing to accept a deed.. but, a deed in lieu saves them from attorneys fees and other costs and time of a non-performing asset.. So, I don’t really think you can eliminate a Deed in Lieu if you are “upside down” .. I think it is more that your CPA may advise you which way is BEST..
    With a deed in lieu, again, make sure that the supporting documentation is taken to an attorney!…. REALLY FOLKS, this is the time to spend a little money to get it right. When the lender gives you “REAL LIVE DOCUMENTS” take them to an attorney and get good advice!
    Good Luck to you all! I’m so sorry that so many people are in such dire straits. Lets hope that the lenders begin to get the short sale process down so that when we get good buyers we can get the job done.
    AND.. for those of you who have commented how important it is to have a GOOD REAL ESTATE Agent.. Thank you…. Some agents are REALLY good at this and they sort of thrive on it…. Others of us, just do it because these are our clients and we want to take good care of them in good times as well as the bad. It is a LOT of work… and very frustrating. I RARELY show short sales because I know what is involved and in today’s market with today’s EXCELLENT interest rates, why would I tie up a good buyer on the HOPE that a short sale would come through… AND.. each sellers circumstances are different!.. so, maybe THEY will qualify, and maybe they won’t!!!
    SO, If you are reading this .. LENDERS: NOTE….. Pre Approval the SELLERS for short sales would make the listings more marketable and would bring more buyers (ie. more money) to the table!…
    All the best!

  • Caren

    Call your tax advisor.. ! They will have this most valuable answer… Ask about the Federal Impact and the State Impact…

  • Reine

    I am selling my house via short sale with Wells Fargo. They say they are ready to assign a negotiator. There’s nothing to negotiate from my perspective. I have nothing to give them. What’s the point of the negotiator? What are they going to try to screw me out of, or with?

  • Mark Benacquisto


    Good luck! I had an offer on the table for a short on my home in Michigan. Only for them to come back and tell me that I have no Financial Hardship! I explained that my position was being eliminated and my only option is to move to Texas. Even had my employer write Wells a letter directly explaining that if I don’t relocate the position will be given to another canidate. You have to ruin your credit to get approved. Makes no sense what so ever!


  • Marlene Vickery

    What planet was that Wells Fargo short sale department on? None here! I dealt with Wells Fargo for my mortgage, my loan modification and then my short sale. The loan modification was a real screwed up mess. Took 11 1/2 months to approve and then it was for MORE than what I was already paying! Some modification! When they did approve it, I was already in a short sale situation. I refused to sign the modification, needless to say. The short sale process was an even bigger nightmare and the repayment department isn’t much nicer. What a nightmare! My credit is ruined, I spent THOUSANDS of dollars and gave up a job in another state to return to Alaska to “do the right thing.” My biggest regret is that I did not walk away from it two years ago!

  • Caren

    My client was told that they were going to assign a negotiator within a week of his submission of the short sale package. I thought that was ODD also. As it turns out, we now have a potential buyer and I was told that a negotiator would not have been assigned UNTIL we had an offer (which makes more sense). I’m with you on the “negotiator” concept.. In our instance, they have apparently assigned a PROCESSOR and a Negotiator. The Processor is gathering all the required “ducks” to put them in line for the negotiator, I believe. I was able to get the name of both the processor and the negotiator within 1 day of submitting an offer on the property. I was impressed that the very next day after submission another Realtor called to set up a BPO “Brokers Price Opinion” of the inside of the property.
    The Processor has communicated every couple of days in the past week and we complied with MOST of their requests. The 1-2 items which we could not comply with we are trying to iron out.
    The buyer that we have wants to buy with money from their 401k plan. It seems that the “investor” for this loan, which is Freddie Mac, apparently only permits a buyer to be an individual or an LLC. At them moment, I am confused by this, since Wells Fargo and Freddie Mac are not the “seller” of the property.. My client is the seller of the property. SO, why or who the seller sells to should have no impact on Wells Fargo or Freddie Mac so long as the transaction is an Arm’s Length Transaction.. (which it is). I have been told that the file will be “escalated” to answer this question… We are requesting that the Investor/Wells Fargo concede a reduction in the payoff .. and thats ALL we are requesting them to do. They are NOT THE SELLER OF THE PROPERTY.. So, in my minds’ eye, they should not be playing “seller”.. They should be playing Lender, trying to cut their losses…. But, perhaps that it too logical.
    All and all, so far, the experience has been very efficient.
    The negotiator, negotiates a “settlement” or the approval once you have a buyer.
    In an ideal world.. before you went to market, YOU the seller would know that you either qualified or didn’t and the terms under which the lender would “set you free”.. all pre-approved for a short sale.
    THIS would in fact make the short sales more attractive to buyers and it would reduce the processing time and it would also provide the greatest yield back to the investor, because they would have MARKETABLITY .. that they don’t have when there are all these unknowns (time frames and approvals).
    Good Luck to you,

  • Diana

    Hi Rita … I just read your post. My husband and I had the same situation as you earlier this year. We live in Seattle, WA. We even have the same first and second lenders and Wells got some money in the short sale. They did not inform us before we were at the closing table that we would need to sign a “promissory note” which was really just a letter acknowledging that we still owed the balance. We were forced to sign or lose our short sale buyer completely. Since then, we had not been contacted at all by anyone since closing (June 2010) regarding the deficiency and then last night we were served a Summons and Complaint for the balance of $82,000. Wells hired a local attorney form to represent them but we never heard from this attorney at all before the lawsuit was filed.

    You indicated that the lawyers on yours have agreed to settle? Did you receive a lawuit and then reach out to the lawyers then? Do you mind sharing your experience in greater detail and what you were able to settle for, if you were able. I would really appreciate any help or sharing from you. Thank you!!!!

  • Caren

    Follow Up to the above stated situation.
    This short sale was declined by the short sale lender due to not meeting the “investor”, Freddie Mac’s guidelines that the buyer be either an LLC or an individual.
    The only good news is that it was turned down within 3 weeks which means that the buyer and the seller were not kept at bay for an eternity.
    I do not understand why Freddie Mac would have such a ridiculous policy. They turned down an ALL CASH BUYER. . It should not matter to them WHO the buyer is…
    The BPO has not been recorded in the file and so I have asked for Wells Fargo to look into it. I know that it was done, I know what the approximate value that the appraiser gave, but for some reason, they don’t have a record of this BPO.

    Good Luck to All..

  • Mike

    Hi Diana…my wife and I own a condo in Seattle and a house in Kirkland. We can no longer afford both mortgages as they are bringing us down. We’ve been renting the condo, but are only getting roughly 60% of the mortgage covered. We’ve never missed a payment, but our credit card debt has been the victim b/c of this. We are looking into approaching Wells Fargo about doing a SS, b/c we’ve tried multiple times in the past to sell, but were unsuccessful. We’re afraid of all the stories that are mentioned in this thread. Any suggestions as to how to approach it? I’m asking you since you live in the same area.


  • Claire

    If it is not closed, I would not be so happy! You never know what might happen!

  • Dean

    Hi All. Very informative website. I had a quick question about the short sale process. We’re in the process of buying a SS home in CA. There are 2 lenders, both Wells Fargo. There was a buyer who put in an offer before us but backed away after the BPO came through. That’s when we put in our offer and within a week the 1st lien holder approved the short sale. Since then the 2nd lien holder (WF HELOC), has been negotiating with the seller. Last week the negotiator asked for the seller to contribute. The seller refused stating they had no money to do so. The negotiator then turned around and asked for us, the buyer to make a contribution. Initially he asked for 7k, but we said no and instead offered a 1000 which the negotiator agreed to. Today told the agent he needs to send the file to the “committee” and they would make the final decision on the SS. My questions are, if the negotiator approves the SS, what are the chances the committee comes back and denies it? Secondly, if the committee does deny the SS, will they counter asking for more money? If so do they provide the negotiator with a bottom line figure that he uses for negotiation purposes?

  • RCharles

    Rob Anderson

    First, let me congratulate you on such a high level of sensitivity toward a fellow human being.

    Then I would compliment you on your reading skills and business acumen. The OP wrote “We had a considerable loss of income. Wells Fargo has called every single day to harass us. Eventually we just unplugged our phone.” Of course, the bank si right – these are clearly deadbeats who probably deliberately got themselves fired to generate a considerable loss of income.

    It’s a pleasure to find someone with such a solid grasp of the fundamentals and the ability to clearly explain the facts and options.


  • Donald Alderman

    I am a little confused. Is it common for the bank to come after the balance after doing a short sell? Is this is the case what is the point of doing a short sell if you have to pay the balance of the loan?

  • Evan Whittaker

    My daughter made an offer on a short sale property in New Jersey that was accepted by the sellers on January 18th. The sale price had just been reduced by $10,000 to $199,900 and she offered $195,500 with a contract addendum obligating her to possible 2.5% in additional funds to cover any seller shortfall at closing. There is a $3,600 gas lien on the property. Wells Fargo holds the 1st and 2nd liens. The sellers received an acceptance letter from Wells on April 1st signing off on the 1st, but demanding a promissory note on the entire balance of the second lien totaling $60,000. The sellers have refused to sign the note and are trying to re-negotiate the 2nd (the husband works for Wells Fargo) in tandem with their real estate broker. The property appraised for $215,000. Meanwhile my daughter’s interest 4.75% interest rate lock expires on April 14th. What are the prospects that this deal can be saved?

  • Samantha

    We bought a home for $116,000 through a mortgage company. Wells Fargo bought the loan. BIG PROBLEM!!! First they made us carry homeowners insurance of $250,000 on a house that appraised for $125K. The taxes in our community raised our mortgage payment $50/month every year. Our payment started out at $980/month. The payments now are $1384/month. My husband and I both lost our jobs and fell behind on our payments. We tried to do the Home Modifications through them and we had no luck whatsoever said it would raise our payment to more than the payment already was. We do not have credit card debt and bankruptcy was not an option for us. We were just trying to raise a family and pay our bills. The economy took a turn and life kicked us in the butt. So forecluse notices, the phone calls harassing and threatening us. We asked about a short sale, no one from Wells Fargo ever said anything about it. We qualified for the short sale. WF sent their appraiser which appraised the property at $120K, the payoff (with all of legal expenses they added on) was $103K. They made us list the property at $120K and said not to submit any offers less. The real estate agent had an offer of $80K. The definition of a short sale is less than what is owed on the property. Now some Sheba person won’t answer the phone and has no voice mail. I hate Wells Fargo and will never ever have anything to do with them again. We vacated the home, turned the water off and left the electric thinking the realtors would need the elctricity. Now it is summer and the city is saying we have to mow it or they will charge us. We want to do a deed in leiueof foreclosure but no one will respond to emails or phone calls. The property is not going to sell. The realtor is not showing it anymore. Funny, they sure called and hounded us before but all of sudden no one wants to talk to us. No breaks given. And we did not purchase a home out of our price range. We did not have an ARM. Both husband and I are working now but it is too late.

  • Heidi

    sounds very familiar! We turned to Wells fargo for a loan Modification. They ran our numbers at the beginning and said we looked great to qualify and possibly get our 5.75% to a 2.99% rate. YEH! Only 3-6 months and we’d get a great lowered monthly payment. WELL- after 8 long months of updating all our forms every 60 days, we were turned down because of some form we never turned in. We had never even been asked for it or ever heard of it. Also, during the process they said we’d have to escrow with them from now on and they would pay all current or future property taxes due within 60 days. We were told this would be added to the end of our loan.
    Now that they said we didn’t turn in the form, they want all the escrow money repaid within 24 months, plus escrow each month and it’s due starting this current month. It ended up being almost $1,000 more a month. We now have to look into forclosure as well, since we don’t have that much money laying around. DON’T work with Well fargo! I wouldn’t advice it at all!!!

  • Amy

    I put in an offer for a home that is in short sale on 5/23/11. I am set to close on 6/30/11. The bank has recieved my offer and is already in the process of getting an appraisal. Acording to my realtor and the sellers realtor I should have an answer by 6/10/11 if the offer is approved or not.

    The house I am renting now is in foreclosure. The owner just got notice yesterday that it will be sold on the courthouse steps on 7/5/11.

    So my questions are: should I look for another home that is not a short sale?
    Should I wait to see if WF accepts the offer?
    If for some reason I don’t close on 6/30 and this home is sold that I am renting how long after the 5th will I have to move out?

    I am afraid we are about to be homeless!! To scary!!!

    Thanks for any info!!!

  • Daniell

    My husband and i purchased a fixer upper for 130000 10 years ago, getting bad loans and refinancing over the years with countrywide, somehow we are now at 300000 owed on our home. We have had a decrease in income. We asked for modification once we fell behind and the payment started out 300.00 less, . Within 2 years it was over what we could afford. We were told that you can only have 2 mods in a five year period, we don’t qualify for short sale , i’m tired of playing games with BOA. We now try to pay our 2500 mortgage bi weekly , which is a strain. Should we just walk away.

  • Lynn

    It’s nice to know I have company – In Nov 2008 with perfect credit, no major debt except my home loan and one 7K credit card – oh and overpaid on my morgage been with them 20 years never bounced a check (no medical, car, student or other debt) I contacted Wachovia “in anticipation” of worsening economy. They refused to help me because I was not in default. Not believing what I was hearing I kept on at them for over a year, through lost and forgotten paperwork, resent faxes, changes in their depts .. when I WAS in default they would not help me either. They IGNORED an attorney letter and then when I followed up asking them to reply to my attorney they ignored my letter. Then they sent a foreclosure letter .. when I asked why they hadn’t ever answered my attorney (who was making another attempt to work out something .. I did after all have TWO jobs ..) they said “because you never authorized us to work with him” (Huh?). Having only 30 days to foreclosure I went the bankruptcy Chap 13. Mistake. Because I had no major debt the attorneys fees, trustee fees and arrears now add $500 to my morgage for 4 years which I have been paying BUT my case is still in court. (Apparently if you have no job, own 3 vehicles, don’t work and don’t intend to work they just approve you right away ….). I have now decided to pull out of the bankruptcy and am trying for a short sale. ) Oh did I mention WF (who of course took over “lost me” last week, could not find me by acct number, name, SSN, address …). I don’t hold out much hope that they will approve it so it’s probably an upcoming foreclosure ….. I still have a hard time understanding they will approve someone to buy the property for much less but won’t work with the current homeowner …

  • Chris

    I know your situation to well! We put an offer on a fixer upper home here in Henderson,Nv Feb 8,2011. After waiting 4 months we agreed on a higher price on the house with Wells Fargo.Then they lost the sellers file for a month.The bank then changed managers in that department which took some more time. After that the bank was telling the seller’s negotiator that we should get the final approvel anyday. So last Monday the bank told the seller’s they needed 20,000 from them. I couldn’t believe it. The seller’s are in their 70′s and one of them are sick. So the seller went into his 401 and offered 10,000. So now we are at 7 months and still waiting for the approvel. They tell us again anyday we should get the approvel. I’m not going to hold my breath we are just about ready to pull out. Mean while the house we have been renting for 6 years is being foreclosed so it puts us in a tough situation. The bottom line it is ridicolous what the bank does to people. I think there should definitely be a time line the bank has. They feel like they could take their sweet time meanwhile we are going crazy!

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  • http://debtkid.com Brad Nottingham

    we put in an offer on a house that is listed as a short sale. the sellers have two mortgages on the house, both with WF. The first is current but not the second. the offer was put in on June 15th of 2012. It is now, August 15th and we still have yet to receive an approval or denial or even a counter offer from the bank. we were told all the tasks in “Equator” were done and the appraisal was done last week. just wondering if anyone could tell how far along we are in the process. also, the original asking price was 249,900. the sellers accepted our offer of 235,000. the house appraised for just over 306,000.00 two years ago. anyone have a clue if WF will accept our offer?

  • Liz

    We made an offer on a Wells Fargo short sale listed at 630k in July. We offered 560k, which was comparable to recent sales. There are some very nice homes in the area with a lot of frills that are NOT comparable but WF took more than two months to call in a counteroffer of 750k. We think it’s their way of telling the sellers they technically qualify for a short sale but WB intends to get what they are owed. Fine- but don’t leave us in the middle for months then phone in this absurd counter. We have very good credit and jobs and will never use Wells Fargo for anything and will tell anyone that listens how upset we are with them.

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