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Wells Fargo topsy-turvy short sale approval requirements
Senior Citizen Debtor in Chapter 13. 2/3rds of way through 0% plan paying only priority debts. Lost job. Can't find another. Can't afford mortgage payment anymore. Stress taking its toll. Wants to conduct short sale and has all cash buyer. He will be paid move-out stipend if sale approved, so it is worth debtor's while to pursue short sale rather than risk foreclosure and not be paid cash for keys. Lender, Wells Fargo, insists that it will not consider the short sale unless debtor first obtains an order authorizing short sale. Seems like placing the cart before the horse! I explained that I can pursue a comfort order allowing Wells Fargo to discuss short sale without violating the automatic stay. I also the requirements to approve a sale which include a sales price and estimated closing statement disclosing who is being paid what. Wells Fargo insists an Order approving the short sale must be obtained before it will consider the request. It seems insane to me to take the time and expense of filing any such motion before knowing Wells Fargo will agree to the short sale terms. Even if such motion were filed based upon such speculative anticipation, I am not sure Judge Kaufman would grant it without knowing whether Wells Fargo will accept the short sale terms.
Anyone else dealt with a lender making such demands to consider a short sale? If so how resolved?
Mark Jessee
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