Jul 29 2010
Wells Fargo Short Sale Dispute
Every once in a while, we want to declare our frustrations to keep our sanity in the difficult short sale industry. It also helps us continue fueling the flames to fight the lenders because certain days are more complicated than others.
We don’t detest Wells Fargo. However, they are failing us today. The loan that we are having difficulties with is an FHA loan. So, that may perhaps be part of the problem holding things up. We will have to escalate with this folder. Here is the story.
We received an offer on a home, a town home in Maple Grove. The listing price was dropped to $129,900 and we received a very decent offer on the house. We actually counteroffered and got an even higher offer. So, now we are sitting on an appraisal clash because the lender is not pleased with the value that they received.
Wells Fargo showed us the appraisal information and they were using comparables from six months ago and failed to consider any homes that were short sales or REOs. Also, the whole town home development is short sales and REOs. They will only take into account active listings that were of regular sales.
Clearly, this is a short sale. However, we are not allowed to use the exact same town homes that were sold through foreclosure or short sale. We have a closing that is thought to be in August. This procedure with Wells Fargo is nonsensical. Why don’t we go back four years ago and look at those sales?
We will get this sale completed. This has occurred before, but we sought to give people a little insight as to why loan modifications don’t work and why other realtors don’t close short sales and why short sales take so long. We have submitted seven comps that were lower than the bid on this town home. We will happily pay for a airplane ticket for Wells Fargo to come and see the comps and tour the house. We know the market and we will close this deal.
Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota
