Short Sale CASE STUDY: 006

Now For The Dirty Work

Yesterday Wells Fargo assigned 3 separate tasks and gave us until 6am tomorrow to get them complete.  These are the tasks I have been preparing for and why it is so critical to get all of your paperwork lined up in advance to avoid delays.

I will describe the tasks in the next few paragraphs but want to point out a few things first.  Remember that this particular short sale has an FHA loan in place that is being serviced by Wells Fargo.  The tasks in Equator are going to be different depending on who is servicing the loan and what type of loan is being serviced.  The following tasks may be different if you are processing a short sale for Bank of America or GMAC.  There will be be similarities for sure, and you will be able to understand the overall process by following along.

Task 1: Sellers Hardship

In this task I am required to give a brief statement regarding the hardship the seller has faced.  I basically said that he had health issues that led to him being incapable of continuing his contracting business.  It’s a bit of a dual hardship but the decline in health led to the loss of income so I categorized the hardship as “Illness of Borrower”.

They requested that I upload a Hardship Letter. I already had this ready and made sure that it was signed and dated within 60 days.

They also had me answer several questions about when the hardship started, if there were insurance benefits coming and a bunch of other questions relating to the hardship and the ability to re-establish work.

Task 2: Financial Information

This is where I always seem to get hung up with Wells Fargo.  Somehow the bank statements are never current enough, or the paystubs are legible or some other excuse.  I was really hoping to get passed this task without a hitch but I think there is going to be an issue.

Because I made a selection that the homeowner was self employed, it asked me to upload a Year to Date Profit & Loss Statement.  His hardship letter stated that he hasn’t worked since 2009 so there is not going to be a P & L. I suppose I should have marked that he was NOT self employed but I was hoping to communicate the fact that there won’t be any pay stubs.  I uploaded the Social Security Award letter in this place instead and messaged the gatekeeper as to why I had done this.

I should know in a week or two if this is a hang up.

Tax returns, bank statements are uploaded in this task and I was required to give an account for all income and monthly expenses on a financial worksheet.  I had already had the seller fill out a financial worksheet so this step was not an issue.

Task 3: Contact Information

Too easy.

Just had to verify the contact info for the seller in the system and make any changes.

All 3 tasks were done with 20 hours to spare and I was able to message the processor at Wells Fargo that they were complete.  I debated telling her about the P&L vs Award Letter issue and in the end decided it would be best if I told her about it so that she knows I’m not just being negligent in what I upload.  Kissing up to the gatekeeper just might get me through without paying a heavy toll.

It is usually 7-10 days before they are able to audit all of the documents I have uploaded and provide a response.  I will check every couple of days to see if the status has changed or if there are messages or tasks to complete.

Stay tuned until then..


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