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Was your home loan, now serviced by Wells Fargo, previously with World Savings…or Wachovia??

 If so, you are in the prime position for a Wachovia “streamlined” short sale.

Sam Bedros, our local Wachovia short sale negotiator, held a “Short Sale”  seminar at the North Bay Association of Realtors last week.  Here’s so what he had to say;  
All short sales, at any bank, must first go through the eligibility process for a HAFA (Housing Affordability Foreclosure Alternative) short sale. Once eligibility for HAFA is determined, a seller can decide if they are better off with a HAFA short sale of a Wachovia short sale. Some of the differences to consider are as follows;

  • Wachovia may offer you up to $5000 at close of escrow for moving expenses, etc… HAFA will pay the seller $3000 in move-out money.
  • HAFA will only pay a junior lien holder $6000.00 to settle the short sale, where-as Wachovia will pay up to 20% of the 2nd loan’s balance.
  • HAFA will postpone the foreclosure of a home for 180 days with an active listing (if not less than 10 days from the sale date) Wachovia will only postpone a foreclosure date upon receipt of an accepted offer, and a commitment letter from the buyer’s lender.

 

So, what makes Wachovia’s short sale process so successful??

All of Wachovia’s loans,  99% of World Savings’ loans….and 20% of Wells Fargo loans were “portfolio” loans…meaning they were not sold to investors, they stayed “in-house”.  A portfolio loan does not require the long process of getting investor approval for a short sale pay-off. The benefit to the home-owner is a personal approach to the short sale process with unusually quick results.

Why is Wachovia’s short sale process so different from the other banks? About 2.5 years ago, Wachovia was closing 80 short sales per month, across the country….a pitiful number. So, they decided to take a closer look at the process. They came up with a plan that would personalize and streamline the process. They put together “short sale teams” in local market areas….with a local negotiator who actually meets with the home-owner to go over their options and to determine the homeowner’s eligibility for a short sale. This is the HUGE difference. The negotiator is brought in as soon as the seller lists the property, NOT when there’s an offer….as is the case in most short sales. By determining eligibility first, the whole process moves quickly and smoothly. A Wachovia short sale is typically approved in 7-10 business days….and can close in 37 business days.

To be eligible for a short sale through Wachovia, you must have a hardship. Your house “under water” is not a hardship…..however, with a qualified hardship, Wachovia will consider a short sale even if you are still current on your mortgage. Wachovia will also consider a short sale for a non-owner occupied home.

Wachovia has now gone from 80 closed short sales per month to 1300. And, where the average for all banks’ closed short sales is 30%…..Wels Fargo (including Wachovia/World loans) comes in at 80% closed short sales.

Some things to consider as an agent taking a Wachovia Short Sale (or any bank short sale for that matter);

  • Buyer scrutiny. Is the buyer qualified, and serious about the home.?
  • Seller scrutiny. Is the seller serious about working with all party’s to ensure a smooth transaction. Are they willing to make their home available and attractive to buyers?
  • Work with the Jr Lienholder; Find out right away, who holds the 2nd mortgage… is it purchase money? Contact the Jr. Lienholder asap to start the negotiating process.
  • Look for surprises; Are there any back taxes owed, delinquent HOA dues, liens, etc??
  • Make the property saleable; minor repairs, staging….at the very least, de-clutter and CLEAN.
  • Make the property easy to show.

For more information, or to make an appointment to discuss the possible short sale of your home,  call me at 707-799-3617.

~ Allison

 

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