Wells Fargo Allows Foreclosure Postponements for Short Sales in Certain Situations

Wells Fargo Allows Foreclosure Postponements for Short Sales in Certain Situations

In November 2010, Wells Fargo advised NAR that it has modified its existing guidelines to allow the postponement of a scheduled foreclosure in connection with a short sale, but only in limited situations. For loans owned by Wells Fargo (including Wachovia) and other loans serviced by Wells Fargo but owned by an investor, the policy allows for one foreclosure postponement, but only if: (1) Wells Fargo has a short sale sales contract in hand that has been approved (including approvals from junior lien holders and mortgage insurers, if applicable), (2) the buyer has proof of funds or financing approved, and (3) the short sale can close within 30 days of the scheduled foreclosure sale. Not all investors allow for such postponements. In jurisdictions where the courts will not approve the delay, the postponement policy will not apply. Wells Fargo is willing to address situations that do not qualify under these guidelines on a case-by-case basis.