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Economy

Wachovia Will No Longer Postpone A Foreclosure



Russell Shaw | 2010/08/09  | 42 Comments

Money Gun thumb Wachovia Will No Longer Postpone A Foreclosure

In an effort to stop sellers facing foreclosure from gaming their system, Wachovia has completely stopped allowing any postponement of a foreclosure or Trustee’s Sale.  I have long felt that Wachovia was not simply a good lender to deal with for a short sale – truth be told – they were the very best.

I’m being told that this new policy isn’t going to be a “bad” thing.  I don’t see it that way.  To penalize everyone because of  the bad actions of a few is seldom good (even if common).

Here is a copy of a response from Wachovia that was sent to me via the title company:

**IF THERE IS A FORCLOSURE SALE DATE SET – WE WILL NO LONGER POSTPONE THAT DATE FOR ANY REASON – if there is an active foreclosure Sale Date we MUST RECEIVE funds no later than 5 DAYS before that Sale Date, also if there is a SALE DATE set we must receive the full package 10 business DAYS prior to that sale date (and again, we will not postpone that date)**

FOR EXAMPLE:

If you are SUBMITTING A SHORT SALE PACKAGE on a property that has a SALE DATE SET FOR AUGUST 30th, the SHORT SALE APPROVAL WILL BE ISSUED with an expiration date of AUGUST 25th and we will NOT EXTEND the Short Sale approval or SALE DATE.

Sandra Villalpando
Short Sales Manager
Wachovia, REO

I’m hoping that this new policy from Wachovia is reversed.  I do understand that some lenders say they will postpone one and then go right ahead and foreclose anyway.  I’ve just always expected much better from Wachovia.  And rightly so!


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This article published on Monday, August 9th, 2010 at 8:28 pm | Contact the editor

Topics: Economy, Public Relations

About this Columnist (Full Profile)

Russell has been an Associate Broker with John Hall & Associates since 1978 and ranks in the top 1% of all agents in the U.S. Most recently The Wall Street Journal recognized the Top 200 Agents in America, awarding Russell # 25 for number of units sold. Russell has been featured in many books such as, “The Billion Dollar Agent” by Steve Kantor and “The Millionaire Real Estate Agent” by Gary Keller and has often been a featured speaker for national conventions and routinely speaks at various state and local association conventions. Visit him also at nohasslelisting.com and number1homeagent.com.

Email Russell Shaw



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  1. Property Marbella says:
    2010/08/10 at 1:51 am

    It’s time to put down the foot. Glad the someone starting do this.

    Reply
  2. Joe Loomer says:
    2010/08/10 at 6:22 am

    Russell,

    I wonder if there isn’t some wiggle room here – the phrase “IF there is a foreclosure sale date set….” leads me to believe their way out is to not set that date, but instead kick the can down the road and still give those who are actively seeking to avoid the foreclosure or consumate a short sale the time to do so.

    Our area – never one to be flush with foreclosures or short sales – should be minimally impacted, and there are an admittedly small number of true short sale agents, so I’ll defer to your expertise on this. Just seem they left it a little open to me. Was the emphasis yours or did they actually put those statements in all caps?

    Navy Chief, Navy Pride

    Reply
  3. Russell Shaw says:
    2010/08/10 at 1:20 pm

    Joe,

    The person who wrote the email put the letters in caps in caps – I changed nothing but some spelling errors. Plus, my transaction manager has spoken with the short sale manager here and it is confirmed – once a date is set, it is NOT going to be changed.

    Reply
  4. Dan Connolly says:
    2010/08/10 at 1:57 pm

    I just wonder how a bank can say that they won’t accept funds unless they come 5 days before the foreclosure sale. I thought that the borrower has the right to payoff the note or bring it current any time before foreclosure. Can they really refuse to accept a payoff 4 days before a foreclosure?

    Reply
  5. Melissa Zavala says:
    2010/08/11 at 10:32 pm

    Russell: My local fast track representative told me that if the seller qualifies for HAFA, they will postpone the sale. Obviously, we do not have that in writing, but this is what she told me when she called me to drop the bomb just the other day.

    Reply
  6. Russell Shaw says:
    2010/08/12 at 1:26 am

    Melissa,

    All banks – if doing the HAFA program must allow, per the federal program guidelines – a minimum time frame of 120 days to sell the home (with the option of extending up to one year). So any bank on a HAFA sale would not foreclose during that time.

    What has set Wachovia apart from other lenders has been their fast track process that requires no documentation other than a hardship interview and you simply had to have a fully executed contract about 5-7 days before the foreclosure date to be granted an extension. It is what made them the best in the industry. So while I can appreciate their benevolence was met with some sellers exploiting the program, it is still the pendulum swinging too far in solving the problem of abusers.

    Reply
  7. Craig says:
    2010/08/30 at 2:01 am

    Russell,
    My sister’s realtor advised her to take all of her money out of the stock market and put it into cds because of the Wachovia news…he says his “friend” at Wachovia said that this new policy will put 60,000 homes on a foreclosure fast track and it will have a great effect on the economy. Since her husband passed away 6 months ago, she just got all of his assets into her name and invested almost all of her money through Schwab. She is meeting with Schwab this coming Friday. Is there any advise you could offer? Thank you so much.

    Reply

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