In the past several months, Wells Fargo has taken on a new policy wherein they want a copy of all lien releases for any outstanding liens on the property PRIOR to submitting the file to the negotiator for review. They are now pulling their own title work and reviewing it to make sure that all liens are being reported to them. This may cause a huge battle because often the Second Lender will not approve the lien release until they have the written approval from the First.
I have always said that Wells Fargo is one of the strictest Banks that requires a crazy amount of paperwork for them to move forward. We recently had a file wherein the second mortgage, even though they had a second mortgage on the property, took the Sellers to court on the Note and received a Final Judgment against them. The seller was even garnished. However, in Florida, if you are head of household, you can stop the garnishments if you do not agree with the garnishment, so that ended. We have been fighting with a Negotiator that cannot put the second mortgage payoff and the Final Judgment Payoff together as one.
The Bank Negotiator keeps asking for another payoff from Citi Financial which is both the second mortgage and the Final Judgment Plaintiff. She just can’t get it thru her head! We have gone over her head multiple times to a supervisor and she refuses to submit our file. I requested a copy of her title work so we could see what she is seeing, but she just keeps sending us the recorded page number of the Judgment. We have contacted Citi Financial and they said yes this payoff includes the mortgage and the Final Judgment. We have asked Citi Financial to state that in their letter but they complain that this is a standard letter and it will not be tailored to the request of the First Mortgage Company.
So … What do you do??? I have requested our title company to provide us with current marketed up title to verify that they have all lien releases and we can move forward. Marked up title is usually done at closing if the Buyer and/or Seller has an attorney, just to confirm that that are no more liens on the property and that they can guarantee the title free and clear from all outstanding liens.
At this time, we have submitted this information into Wells Fargo and asked for a supervisor as the Negotiator is not a title agent and has no idea what she is doing due to the fact that there are over 7 liens on this property and she doesn’t understand anything. All I can say is that many of the Banks have no intelligent life form working there to understand this process.
Many of the processors and Negotiators are thrown into Short Sales without knowing what is right or wrong. They just follow a checklist and if your file does not fit in their standardized checklist then it will not get through. That is why your Title Company may need to help you and/or the Bank supervisor needs to help. If that doesn’t work then send an email directly to the investor of the loan such as Fannie Mae, Freddie Mac or FHA, stating in the subject line of your email “Wells Fargo does disservice to FHA!”
That is my next step if she doesn’t move this file through as I am fit to be tied and I want this deal to close. It has not yet been submitted to the investor for final review and she is withholding a deal that can close immediately once it is approved.
Know your lender and learn the key things to tell your negotiator to get your deal through.
Join me at my 3 Day Live Event in February. Stay tuned to hear about a short sale deal that I just negotiated and closed with my partner. We could wholesale it for a profit of $20,000, but we’ve chosen to rehab and sell it for a profit of $40,000-50,000. I will tell you more in the next article, but remember, short sales DO work and people are cashing in BIG checks on short sales!!!
Please keep sending me your questions and topics that you would like to hear about, so I can be sure to keep feeding you with the information that you need in order to move ahead in your real estate dreams for 2015!!
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Kimberlee Frank Broker Short Sale Expert
Kimberlee Frank is known as “The Real Estate Junkie,” for her unique ability to find ways to creatively help buyers and sellers no matter which direction the real estate market is heading. Kimberlee had already worked as a legal administrator for an Attorney, Builder and Broker for 18 years when she began her Real Estate career in 1998. She dotted the i’s and crossed the t’s on hundreds of real estate transactions and thousands of documents, making her an expert in real estate documentation. Kimberlee’s success began in Fenton, Michigan. She specialized in selling, purchasing, renovating, retailing and lease optioning single-family homes. She has helped many sellers get rid of their “headaches” and helped many buyers find their dream homes!
Since 2003, she has specialized in foreclosures and short sales. After realizing how many families were being forced out of their homes due to financial difficulties, Kimberlee had a heartfelt obligation to use her experience to help those families. She has mitigated and closed over 500 short sales with the mortgage companies, saving Sellers from going into foreclosure. In 2006, Kimberlee and her family moved to Florida. She lives in Oviedo and her Sell Fast Realty Office is in Winter Springs, serving residential and commercial sellers and buyers in multiple counties in Central and Southern Florida.
Kimberlee is also a Trainer and Mentor and has created several different “How To” systems on real estate. Her unique strategies continue to educate real estate professionals across the country. If you have a proven system to help others out of hardship, why wouldn’t you duplicate it and share it with as many people as you can? Kimberlee continues to work with this philosophy!
Kimberlee Frank has been featured on ABC, NBC, FOX, CBS as well as Wall Street Journal, Newsweek, USA Today and numerous other publications. She is the bestselling author of “Big Ideas for Your Business” (Advantage Media 2009). She was also selected as the #1 Short Sale Expert by America’s Premiers Experts.
Please contact Kimberlee at her office at 407-888-3433 to schedule a Free Facts About Foreclosure Seminar. She has numerous testimonials from sellers, buyers and other real estate professionals who are familiar with her giving heart. Whether it is 1 person in need or 1,000…..Kimberlee will educate them on real estate and give them a solution with a peace of mind!
Are you unsure what to do with your house? Do you need to educate yourself about your options. Click the following link Free Facts About Foreclosure for more information.
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