WELLS FARGO short sale process and timeline is changing.

January 11, 2018 | Brian Ruhl

I recently posted an article about OCWEN and it’s new practices for reviewing and approving a short sale. It seems that WELLS FARGO is also changing its short sale process to require all applicants to be reviewed and decisioned for Loan Modification prior to an applicant being reviewed for Short Sale. We’re finding that it is needlessly adding an additional 30 days to the short sale approval process. All of our clients have already been vetted for a modification or have no desire to keep the home… so it’s adding an additional month to an already long short sale timeline.  We’ve been tinkering with using a signed statement from the borrower/applicant asking to skip the modification review. I will keep this blog updated with any feedback we get on this tactic. We have been told by several WELLS FARGO representatives that this is a new Federal Guideline through the CFPB.

How is the WELLS FARGO Short Sale Process changing?

These changes will affect short sales moving into 2018. According to a VP at WELLS FARGO their process changed in October and will result in a homeowner reviewed for all retention and liquidation options at the same time.  So they will be reviewed for modification, DIL (deed in lieu), and short sale if they call in for assistance.  They may get approved for one option, two options, all 3 options, or no options. Then they can decide which route to take. The change is to streamline how many times they have to review someone for help.  Now it should be just one time, and the decision gets made.  It will take more time and documents for the review, but the review will then cover all options for the homeowner and they don’t have to keep closing out the review and starting over.  Of course, that assumes the homeowner gives us all of the financial documents we need for the review.  In certain cases, if the homeowner has already been declined for a mod in the past, they can be moved right to short sale and DIL review.

How is the WELLS FARGO Short Sale Timeline changing?

It may increase the timeline 30-45 days.  Currently the WELLS FARGO Short Sale Process can take an average of 5-6 months… so add an additional month to that timeline.


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

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