Wells Fargo short sale Guide

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REALTOR® Short Sale GuideWhat Is A Short Sale?Additional InformationA short sale is a work out program that allows the customer• Short sale approval is good for 30 days. If closing does notto sell the home for less than total amount owed. Upon finaloccur within 30 days, the entire short sale package mayapproval, a short sale can help homeowners avoid furtherneed to be resubmitted with updated information, or thecollection activity or foreclosure action. approval process may need to start over. • REALTOR or homeowner inquiries should be directed toHow To Get Startedthe negotiator assigned to the file, whose information• Homeowner is required to call the Short Sale Phone teamwill be communicated during the introduction call.at 1-866-903-1053. Financial information is reviewed and• REALTORS are generally allowed 5% to 6% commissionpre-foreclosure sale counseling is completed.based on investor rules. If dual agency applies, maximumcommission is 5%. Some investors operate on a reduced• The REALTOR® faxes the complete short sale package tocommission structure and the actual commission schedule1-866-359-1975, Attn: Setup. can be confirmed during the introduction call.• If the property is located in Alaska call 1-888-833-6711.• This must be an “arms-length” transaction. The property maynot be sold to anyone the seller has a close personal orDocuments Required To Begin An Applicationbusiness relationship with including family, friends orFrom the REALTORneighbors. • Fully executed listing agreement• During the introduction call the following will be addressed:- CommissionsFrom the Homeowner• Signed and dated financial worksheet listing all monthly- Fees and costsexpenses.- Pricing of the property- Timeline• Signed and dated hardship letter (why they are unable topay the mortgage).• In order to reduce the 25 day response time the liquidationteam is strongly recommending that the homeowner• Letter authorizing the REALTOR access to information on theand/or REALTOR notify Wells Fargo Home Mortgage ofaccount. It must be dated and include the last 4 digits of thetheir intention to sell their property as soon as the listingborrower’s Social Security Number, their signature, the fullcontract is signed. This will allow us to complete theaccount number and the property address.property valuation and borrower financial evaluationprior to receiving an offer. This significantly reduces theshort sale decision time on a submitted offer.• In some cases investors and/or PMI companies require themortgagers to sign an unsecured note for some or all ofthe difference between the net proceeds from the sale andthe total amount due. This is communicated as part of theresponse on a short sale offer.1This is our estimated timeline based on business days and assuming all documentsare submitted in completed form and timely.Timeline Total Process Event(Business Days)(Business Days)• Complete short sale application received• Short sale application activated1-22• Complete application assigned to negotiator• Incomplete application will delay process• Negotiator initial review 57• Introduction call to REALTOR and homeowner• Property evaluation completed (appraisal or interior BPO per 8-1313investor requirement)Additional Steps:• Mortgage insurer approval• Investor approval• Additional liens negotiated by REALTOR1023• A completed net sheet/HUD (our payoff is not necessary)• Fully executed purchase contract with all pages initiatedby buyers(s) and seller(s).• Buyer pre-qualification letter or proof of funds if cash offer.All items above complete• Application decision225• Decision letters issuedTimeline events may overlap and occur simultaneously.Liquidation Contact NumbersLoss Mitigation Phone Team – 1-866-903-1053Loss Mitigation Setup Fax – 1-866-359-1975Properties located in Alaska should call - 1-888-833-6711This information is intended for real estate professionals only and is not for consumer distribution. Information isaccurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division ofWells Fargo Bank, N.A. © 2009 Wells Fargo Bank N.A. All rights reserved. #104567 1/092