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Wells Fargo – no short sale extensions

(Courtesy of Liv Lively, Your Castle Real Estate)

"Wells Fargo Puts a Stop to Short Sale Extensions

10/01/2010 By: Carrie Bay

Wells Fargo will no longer delay foreclosure proceedings in hopes that a short sale deal will come through.

According to an American Banker report, the bank has stopped granting extensions for distressed homeowners to complete short sales. The paper, citing a memo Wells emailed to short sale vendors, said the lender will no longer postpone foreclosure sales for borrowers who do not close on short sales by the date quoted in their approval letter.

The move will allow the bank’s foreclosure proceedings to advance, even if a short sale is already in negotiation. Wells says it changed its policy at the request of investors it services mortgages for, including the GSEs, according to American Banker.

Last month, Fannie Mae announced an initiative to crack down on servicers for letting delinquent loans languish too long without action.

The GSE issued a notice alerting servicers that it is monitoring all delinquent loans in its portfolio and mortgage-backed securities (MBS) pools, and will conduct on-site reviews and assess fines for poor servicer performance when it comes to completing foreclosures in a timely manner."