Trying to do a short sale on a Wells Fargo loan? Facing Foreclosure? Read this...

For those folks dealing with Wells Fargo for a possible short sale, take note;

Earlier in November, Wells Fargo informed the National Association of Realtors that it modified its criteria to postpone trustee sale (foreclosure) if the property was under review for a short sale. For loans owned by Wells Fargo (and former Wachovia / World Savings loans they acquired), as well as other loans serviced by Wells Fargo but owned by another investor, the policy allows for ONE foreclosure postponement, but only if: (1) Wells Fargo has a short sale purchase contract in hand that has been already been approved (including approvals from junior lien holders --2nds--, 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.

However, Wells Fargo also noted that not all investors (other non-WF entities that actually own the loans) allow for these foreclosure postponements and stressed that in jurisdictions where the courts will not approve the delay, the postponement policy will not apply (this does not really affect California, which has a non-judicial foreclosure process). All other situations that do not qualify under these guidelines will be reviewed on a case-by-case basis.