What is a Wells Fargo Notice of Short Sale?
The Wells Fargo notice of short program is an extension of the HAFA program. A Notice of Short Sale is usually issued by Wells Fargo when you initiate a HAFA short sale with no Offer. The Wells Fargo Notice of Short Sale will provide you 120 days to obtain an offer at the amount listed on the Wells Fargo Notice of Short Sale and during the 120-day period Wells Fargo will not move forward with any sort of Foreclosure activity if you are in active foreclosure.
The offer that is deemed acceptable per the Notice of Short Sale is determined using the property value. Wells Fargo will complete a property value, it could be an Appraisal, an interior BPO, a drive by or exterior BPO, and sometimes even a desktop valuation.
As of lately Wells Fargo has only been completing exterior BPO’s or drive by BPOS when Wells Fargo is the investor of the Loan. When it’s not a Wells Fargo investor loan they are more open to completing an interior value but in most cases will still order an exterior value, they are not completing interior BPO or appraisal values in order to limit the money spent in order to resolve the delinquencies on the account/liquidate the property.
There are work arounds that could assist you in getting Wells Fargo to order an interior value, read Wells Fargo Short Sale: Wells Fargo won’t complete interior value for those workarounds.
What are the Pros of the Wells Fargo Notice of Short Sale?
-It provides 120 days of Foreclosure protection and can buy you time if in foreclosure.
-Will support a lower value if no offers are received during the 120-day marketing period and you can prove that the property was listed active at the list price recommended per the Wells Fargo notice of Short Sale.
What are the Cons of the Wells Fargo Notice of Short Sale?
-Exterior Values are not accurate and can make getting an offer approved more challenging than it normally is.
-Wells Fargo will not review offer lower than the amount on the Notice of Short Sale unless supporting documents are provided to support a lower offer.
-The file goes into a state of limbo during the 120 days and no processor is assigned to the review to keep an eye on the file. Making getting answers and initiating disputes during this process very difficult.
WELLS FARGO NOTICE OF SHORT SALE by firstname.lastname@example.org