THE HERTZOG BLOG: Wells Fargo Gives Freddie Mac The Middle Finger!

Wells Fargo Gives Freddie Mac The Middle Finger!

Good old Wells Fargo is up to their tricks again.  Only this time, they may be playing with fire.

If you haven’t already heard, Wells Fargo instituted a policy that went into effect on 5/1/12.  From now on, they are refusing to waive any deficiency rights for their Freddie Mac short sales.  This, despite the fact that Freddie just instituted a policy on 2/15/12, specifically barring any lender/servicer from requiring deficiency language in their short sale approval letters.  The new policy reads “Reinforcing the requirement that the Servicer, for itself and on behalf of Freddie Mac, must waive all rights to seek deficiencies for short payoffs and deed-in-lieu of foreclosure transactions on Freddie Mac Mortgages that have closed in accordance with the Guide”.

So, what did Wells Fargo do with this requirement?  They basically gave Freddie Mac (and distressed homeowners) the proverbial “middle finger”, and instituted a policy that REQUIRES that ALL Freddie Mac mortgages will have the following language in the approval letters they issue: “With the exception of a Home Affordable Foreclosure Alternative (HAFA) closing, nothing in this Demand Statement or in the release of the mortgage shall waive the right to seek a deficiency under the loan documents or any of its other rights thereunder, and the obligations evidenced by the note shall remain in full force and effect until paid in full.  Houston, we have a problem!

Wells Fargo Freddie Mac short sale deficiency

Read more about how this new Wells Fargo policy change regarding Freddie Mac short sales stands to hurt not only distressed homeowners, but the American Taxpayers as well...
 

 

Bob Hertzog

Designated Broker-Summit Home Consultants

http://phoenixhomeseekers.com

           


 

 

Comment balloon 3 commentsBob Hertzog • May 14 2012 10:20AM

Comments

Bob, this was the most interesting blog post I have read this morning, you get the "thumbs up" from me and a finger on the suggest button. This should be a feature.

Posted by Barbara Le Pine, Your agent for the Central Oregon Coast! (Advantage Real Estate, serving Lincoln County) over 6 years ago

Thanks Barbara, glad you found it useful! Hopefully others will read it and take some steps to stop it.  

Posted by Bob Hertzog, Designated Broker (Summit Home Consultants) over 6 years ago

Hi Bob,

I agree, this was a very interest post to read. Thanks for sharing this information. Keep up the good work as a top Phoenix short sale agent!

Posted by Bas Panch (SCV Home Buyer) over 6 years ago

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