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Wells Fargo REQUIRES that a short sale be listed and negotiated by a licensed realtor who is a member of the Multiple Listing Service. In fact, realtors have to put their real estate license number on the short sale file when it is submitted. If a licensed realtor is not listing and selling the property then Wells Fargo will not consider the short sale request.
The prevalence of third party negotiators and investors (both parties are often looking to defraud lenders and/or borrowers) has no doubt been part of the impetus for the change in policy.
Wells Fargo is one of the few lenders that requires all parties to the sale (buyers, sellers and realtors) to sign affidavits regarding the nature of the sale. All sales must be arms length transactions (no one is related) and be characterized by a selling price and other conditions that would prevail in a typical real estate sales transaction. It seems likely that Wells Fargo will be very likely to audit their short sale files when the foreclosure crisis subsides and pursue sellers, buyers and real estate agents who engage in practices that could be construed as fraudulent.
So, if you are considering applying for a short sale with Wells Fargo, your best bet is to call me for an initial consultation. At any given time I have five to ten short sale files in with Wells Fargo.
