Deed in Lieu of Foreclosure – Wells Fargo Frustration

Deed in Lieu of Foreclosure Story

I want to share this Deed in Lieu of Foreclosure Story. Just in case you hadn’t read a definition, according to Wikipedia the definition of  “Deed in Lieu of Foreclosure” reads:

“A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.”

As a Realtor® representing a home owner, I have had the property on the market as a short sale for almost a year.  My time is invested in that property. (But we know the risk).   We had one contract, and it took so long to get an answer, but we finally ended up in counter-offer from negotiator, and the buyer will not agree to negotiator counter, so he bails.

Offer #2 comes along,  and the Wells Fargo is very fast to reply that the offer is now rejected.   Rejected?  Why?  The 2nd offer equals the amount of the Wells Fargo counter-offer on the first buyer.  How can that be?

Wells Fargo states that a short sale scenario is no longer an option and MY CLIENT’S only option is Deed in Lieu.   Their reason:  the PMI company cannot agree with Wells Fargo investor.  End of story.  File is closed on Equator system. The Wells Fargo negotiator tells me that he is not allowed to talk to my client.  He (seller) must speak ONLY to point of contact immediately, and he provided name and phone number.

My client has called and left messages for his Wells Fargo “Point of Contact” since November 16th.  (Notice today’s date of 12/11/11)

My frustration is beyond words.