Documents Needed for Short Sale

[rockraider3]

I'm not sure if this is useful, but it's for a property in California and Wells Fargo is the lender.

My property is in foreclosure and according to Wells Fargo's lawyers, the sale will occur sometime in October. I'm considering all options, including a short sale.

Wells Fargo is telling me to short sell this property, they need to get all kinds of personal information from me, including: Pay Stubs, Tax Returns, Bank Statements, Monthly Budget, etc.

It's almost like they are trying to qualify me for a new loan or a loan modification. I just want to sell this house!!! (maybe)

I'm afraid to give them this information because I have no idea what their "black box" will say after they plug in my data. And frankly, I don't think they deserve it either, because their other option is to foreclose on the home and in the long run that costs them MORE money. This is a purchase money loan and non-recourse. So their hands are tied as much as mine are.

And I'm somewhat indifferent on the credit score impact of between a foreclosure and short sale, as I understand there is little difference and both stay on my credit for 7 years. I'd almost rather let it foreclose and avoid the short sale headache. But ethically, I guess I'd rather short sell it if I can get approval to do it.

Here's my question: Has anyone been successful in getting short sale approval from their lender (Wells Fargo or other) without providing them all of these personal documents? If so, how, what did you tell them?

[Evan Bedard]

Wells Fargo is telling me to short sell this property, they need to get all kinds of personal information from me, including: Pay Stubs, Tax Returns, Bank Statements, Monthly Budget, etc.

Hi Rockraider from my personal experience with Bofa/CW they would require all income documentation before a short sale can be done. I'm sure pretty much all the lenders will require this information as well. Also your property must be listed for at least 3 months before they will consider the short sale.

[rockraider3]

Originally Posted by Evan Bedard

Hi Rockraider from my personal experience with Bofa/CW they would require all income documentation before a short sale can be done. I'm sure pretty much all the lenders will require this information as well. Also your property must be listed for at least 3 months before they will consider the short sale.

Evan, thanks for the quick response. Any idea what they gain out of getting this income and asset information from me, to approve the short sale of my home? I just don't get why this is necessary, as like I posted, it is a non-recourse loan. So I don't believe they can come after me for a judgement of any kind. Therefore shouldn't they just decide whether they want me to sell the home for them, or whether they want to foreclose and sell it themselves (wasting another 3-6 months in the process)? My income doesn't change that equation for them at all....

[Mtobar]

In all honesty, I haven't seen anyone affected by providing their information to them. At this point they are basically just either wanting to help you modify the loan or help you get rid of it. However, I am providing you below with a very important contact at Wells Fargo for Short Sales. He is the Manager in that department. Very knowledgeable and helpful, If you have an offer already, you could get rid of your nightmare in less than 30 days with him taking over your file. Good luck!


Luke W. Reimers- Loan Adjustment Manager (Short Sales Manager)
Direct line (515) 331-9142
E-mail is Luke.W.Reimers2@wellsfargo.com>>

[rockraider3]

Originally Posted by Mtobar

In all honesty, I haven't seen anyone affected by providing their information to them. At this point they are basically just either wanting to help you modify the loan or help you get rid of it.

Thanks for the contact information.

But my question still remains, if the income/asset information doesn't affect their decision to agree to (or not agree to) a short sale, then why is it necessary to provide it to begin with. It should be a decision the lender makes based upon how to realize the maximum proceeds to minimize the realized loss. And that's all.

Now if you are talking loan modification, I understand why they are looking for it, as they need to understand what you "qualify" for. But in terms of a short sale, if they can't seek a deficiency judgement against you, then what the heck is the point? Is it just to be punitive and put you through the ringer?

Perhaps it's the conspiracy theorist in me, but I refuse to provide personal information unless absolutely necessary. How often do you hear about hackers getting access to personal information at banks, etc? Too often for my liking, and all the more reason to safeguard your financial information.