REALTOR® short sale guide
1
What is a short sale?
A short sale is a work out program that allows the customer
to sell the home for less than the total amount owed. Upon
final approval, a short sale can help homeowners avoid fur-
ther collection activity or foreclosure action.
How to get started
• Homeowner is required to call the Short Sale Phone team
at 1-866-903-1053. Financial information is reviewed and
pre-foreclosure sale counseling is completed.
• The REALTOR® faxes the complete short sale package to
1-866-359-1975, Attn: Setup.
• If the property is located in Alaska call 1-888-833-6711.
Documents required to begin an application
From the REALTOR
• Fully executed listing agreement
From the Homeowner
• Signed and dated financial worksheet listing all monthly
expenses.
• Signed and dated hardship letter (why they are unable to
pay the mortgage).
• Letter authorizing the REALTOR access to information on
the account. It must be dated and include the last 4 digits
of the borrower’s Social Security Number, their signature,
the full account number and the property address.
Additional information
• Short sale approval is good for 30 days. If closing does not
occur within 30 days, the entire short sale package may
need to be resubmitted with updated information, or the
approval process may need to start over.
• REALTOR or homeowner inquiries should be directed to
the negotiator assigned to the file, whose information
will be communicated during the introduction call.
• REALTORS are generally allowed 5% to 6% commission
based on investor rules. If dual agency applies, maximum
commission is 5%. Some investors operate on a reduced
commission structure and the actual commission schedule
can be confirmed during the introduction call.
• This must be an “arms-length” transaction. The property
may not be sold to anyone the seller has a close personal or
business relationship with including family, friends or
neighbors.
• During the introduction call the following will be
addressed:
- Commissions
- Fees and costs
- Pricing of the property
- Timeline
• In order to reduce the 25 day response time the liquidation
team is strongly recommending that the homeowner and/or
REALTOR notify Wells Fargo Home Mortgage of their
intention to sell their property as soon as the listing
contract is signed. This will allow us to complete the
property valuation and borrower financial evaluation
prior to receiving an offer. This significantly reduces the
short sale decision time on a submitted offer.
• In some cases investors and/or PMI companies require the
mortgagers to sign an unsecured note for some or all of
the difference between the net proceeds from the sale and
the total amount due. This is communicated as part of the
response on a short sale offer.
Liquidation Contact Numbers
Loss Mitigation Phone Team · 1-866-903-1053
Loss Mitigation Setup Fax · 1-866-359-1975
Properties located in Alaska should call · 1-888-833-6711
This information is intended for real estate professionals only and is not for consumer distribution. Information is accurate as of date of printing
and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2009 Wells Fargo Bank N.A. All
rights reserved. #104567 3/10
Event
Timeline
(Business Days)
Total Process
(Business Days)
• Complete short sale application received
• Short sale application activated
• Complete application assigned to negotiator
• Incomplete application will delay process
1-2 2
• Negotiator initial review
• Introduction call to REALTOR and homeowner
5 7
• Property evaluation completed (appraisal or interior BPO per
investor requirement)
8-13 13
Additional steps:
• Mortgage insurer approval
• Investor approval
• Additional liens negotiated by REALTOR
• A completed net sheet/HUD (our payoff is not necessary)
• Fully executed purchase contract with all pages initiated
by buyers(s) and seller(s).
• Buyer pre-qualification letter or proof of funds if cash offer.
10 23
All items above complete
• Application decision
• Decision letters issued
2 25
This is our estimated timeline based on business days and assuming all documents
are submitted in completed form and timely.
Timeline events may overlap and occur simultaneously
2
