www.lasvegasmtg.com report: Wells Fargo will not bother extending close of escrow date starting now. Yesterday I received notice that Wells Fargo will institute a new policy that they will not extend any close of escrow once the approval has been issued. Will other banks follow as well? It is too early to tell, but I have talked with a small group of Realtors and the consensus is they will. As a mortgage professional I have instituted the following guidelines to try alleviate any possibility of not closing on time.
No big deal, right?
I just need to adopt the following steps.
- Immediately upon receipt of a short sale contract, determine with both agents if Wells Fargo is involved with the short sale.
- Make sure I address any major issues in the file so they are handled and out of the way.
- I will make sure that I will be submitting the loan to a wholesaler that gives good service and will give this file the priority it needs.
- Once the Wells Fargo Short Sale approval comes in, I will order the appraisal and update the file immediately, make sure my borrower understands the urgency in getting the updated paperwork immediately.
- Push the file as hard and as fast as possible through the system until it closes.
Sounds easy doesn't it?
Issues that I or Wells Fargo cannot control and makes this policy absurd is HVCC delays, HOA Demand delays, Appraisal not coming in at the contract price, RESPA Disclosure required mandatory 7 day time frames for disclosures if mailed. Everyone that is involved with a short sale know there is never any delays in the process with a second lien holder. What if there is a change of circumstance and you have to re-disclose and wait for 3 days to redisclosure? All of these issues can delay the closing, so what does Wells Fargo have to gain if there is not a short sale completion, because Wells Fargo refused to extend the close of escrow? Wells Fargo will gain another house in their foreclosure portfolio.