What are the customer benefits of a short sale?
A short sale helps the customer avoid foreclosure and provides a planned exit strategy. The path back to homeownership is generally shorter from a short sale than from a full foreclosure. In certain situations, a customer may be eligible for a cash incentive upon completion of a short sale (depending on investor requirements and eligibility).
Who are the parties involved in a short sale?
There are a number of decision makers involved in a short sale. These include the homeowner, the listing agent, the buyer, the buyer’s agent, the mortgage servicer, the investor who holds the mortgage, and in some cases, a private mortgage insurer and junior lien holders (such as a second mortgage holder or a local municipality or Homeowners Association that is owed money). All parties must be aligned before the home can be sold.
What happens when an offer is received and how long does it take to get a response?
Wells Fargo will only review one offer at a time on a short sale. The listing agent submits the highest and best offer. We will acknowledge receipt of the offer and provide information on next steps within 48 hours. Wells Fargo will work with the investor to negotiate the property sale price but ultimately the decision to accept an offer rests with the investor. The timeline for offer review and acceptance or counteroffer varies by investor.
Is there a benefit to being eligible for the government's Home Affordable Foreclosure
Eligibility under HAFA means that the homeowner can be approved for a short sale prior to an offer being received. The investor provides a price they’re willing to accept which helps to speed up the decision process once an offer is received. In addition, the outstanding mortgage debt is settled through the program and no legal action can be taken to collect the debt after the short sale has occurred.
How are commisions paid?
A commission rate of 5 – 6% for real estate agents is generally allowed. However, this may vary based on investor guidelines. Commission fees are confirmed during the negotiation process and are paid by Wells Fargo Home Mortgage at settlement.