Wells Fargo Cracks Down on Extending Foreclosure Dates through Modifications or Short Sales

July 4, 2017 | Brian Ruhl
I’ve been in touch with several contacts at Wells Fargo loss mitigation departments over the last 6 months and it’s become increasingly clear they are trying to remove defaulted debt from their books.  With the slowdown in short sales and foreclosures… along with the expiration of HAMP and HAFA, they finally have time to focus on doing that.

The general rule seems to be that if a borrower has been behind for an extended period of time and has tried a modification as well as a short sale, the loan is ‘earmarked’ and will no longer be eligible to avoid foreclosure.  This is a big change from the last decade where homeowners were able to file modification after modification to extend out their foreclosure date and live in the home without making payments.  Many times this was done with the true intention of keeping the home and agreeing to a suitable payment.  Many times it was just a tool to stay in the home mortgage free.

It’s unclear if other banks and servicers such as Chase, OCWEN, SPS, Bayview, and others will follow suit with the more difficult timelines for homeowners seeking a short sale or modification.  Only time will tell, but bank-friendly trends such as these are often times adopted quickly across the industry.

If you have questions about whether you can extend your foreclosure date with your mortgage lenders through a short sale or modification, give me a call at 619-228-6200.

Regards,

Brian Ruhl
The Ruhl Team (Top 1% on Trulia and Zillow 5 Stars)
REALTOR – Over 1000 Successful Short Sales
Cell: 619.228.6200
Brian@RuhlTeamShortSale.com
Lic# 01493664 / eXp Realty

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