Short Sale Questions

[GoNFL]

Hello Everyone,

We are about to submit short sale packet on our house to Wells Fargo. We are making it clear that if they don't approve short sale, the only option we have is to walk away (relocating plus loss of income). The loan is all purchase money, it's a primary residence, less than 2.5 acres etc, so it is non-recourse in AZ.

How likely do you think Wells Fargo may include these clauses in the approval letter?

1. Asking us to take on the deficiency or sign a promissory note for the balance?
2. That they can come after us later if they find any part of financial statement to be incorrect.
3. Bring some cash to closing.

Thanks for your insights!

[crisw]

Do you potentially qualify for HAFA? If so, they cannot come after you for the deficiency.

[GoNFL]

Do you potentially qualify for HAFA? If so, they cannot come after you for the deficiency.

Thanks for the response. I am not sure about HAFA. What are the qualification criteria? I have not tried any loan mod or anything else with Wells. It will either be a short sale or a foreclosure.

[crisw]

1. The applicant must have already applied for HAMP and been denied, or must state that they weant a short sale rather than apply for HAMP.
2. The property must be the applicant’s principal residence.
3. The loan for the participant bank must be the primary lien on the property.
4. The loan must have been acquired prior to January 1^st, 2009.
5. The mortgage must be delinquent or the applicant must have a legitimate hardship.
6. The loan must total less than $729,750.
7. The applicant’s mortgage payment must exceed 31% of the applicant’s monthly income.

[GoNFL]

1. The applicant must have already applied for HAMP and been denied, or must state that they weant a short sale rather than apply for HAMP.
2. The property must be the applicant’s principal residence.
3. The loan for the participant bank must be the primary lien on the property.
4. The loan must have been acquired prior to January 1^st, 2009.
5. The mortgage must be delinquent or the applicant must have a legitimate hardship.
6. The loan must total less than $729,750.
7. The applicant’s mortgage payment must exceed 31% of the applicant’s monthly income.

Thank you, crisw! I never applied for HAMP and I don't satisfy #7 either. I guess I will have to wait and see if they put in a deficiency clause!

Anyone from AZ who had a successful short sale with WF? Did your approval letters include the right to come after you in future?

[crisw]

Just to clarify- you don't have to have applied for HAMP. You just need to tell your servicer you don't want HAMP.

[GoNFL]

Just to clarify- you don't have to have applied for HAMP. You just need to tell your servicer you don't want HAMP.

Got it, thank you! I misread it the first time.