Wells Fargo Returns Short Sale Fund Wires

A Wells Fargo short sale is generally a pretty efficient transaction. Its negotiators are well trained, perform specific duties and work within well defined parameters. It’s almost like you put people into a cubicle so small that they can’t move around enough to even raise their arms, and this prevents them from messing up too badly. Caged egg-laying chickens might have more room. In some ways, I bet Wells Fargo doesn’t like the fact that we are stuck with human beings at all in the work force, but what the hey. Yet, even with all of this efficiency, a local title company says it has been “inundated with returned fund wires from Wells Fargo.”

There is a glitch in the Wells Fargo short sale closing process. For some reason, lately the closing instructions on the final HUD conflict with the closing instructions in the final short sale approval letter. In less than 24 hours from closing a short sale, Wells Fargo last week began sending back the funds to title. The funds are returned in some cases because the Wells Fargo arm’s length affidavit is missing a notarized signature, but in other cases, Wells Fargo has supplied no reason at all.

It happened on two of my Sacramento short sales yesterday, among many others at the title company. A representative from Wells Fargo called me to request documents. She gave me 15 minutes to deliver the docs. Not only did my escrow officer stop what she was doing and email them, but my TC immediately uploaded the docs to Equator. One of the reasons I always answer my phone. You never know what kind of emergency can pop up in a short sale. We beat the 15-minute deadline but Wells Fargo still returned the wire.

What are the consequences of a returned wire? Hmmm, apart from egg on the face (sorry for the chicken joke), in many instances not much, depending on whether the short sale approval letter has expired or whether there is a per diem clause in the terms. As long as there is time left on the approval letter, apparently you’re OK. But if there isn’t, I imagine Wells Fargo would demand its due. That’s the sign of efficiency.