This information was provided to me by the Board Of Realtors, which in turn received it from Wells Fargo.  Many lenders approach a short sale in this manner.  Yours may NOT.  Always call your lender.  Wells may change their policies in the future.  Call your lender if you are contemplating a short sale and follow their procedure.  This is for informational purposes only-not legal advice.


From Wells Fargo

What is a Short Sale?

A short sale is a workout program that allows a borrower to sell the property, even if the proceeds are less than the loan payoff, due to low property value. Upon final approval, a short sale can help homeowners avoid further collection activity or foreclosure action, which can result in adverse credit reporting and possible tax liabilities.

How to Get Started

�� Homeowner is required to call the Short Sale Phone team at (866) 903-1053. Financial information is reviewed and pre-foreclosure sale counseling is completed.


�� The realtor faxes the complete short sale package to (866)-359-1975, Attn: Setup

Documents Required to Begin a Short Sale Application.

From the Realtor

�� Fully executed listing agreement


�� Net sheet/HUD (our payoff is not necessary)


�� Fully executed purchase contract with all pages initialed by buyers(s) and seller(s).


�� Buyer pre-qualification letter or proof of funds if cash offer

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

This is our estimated timeline based on business days and assuming all documents are submitted in completed form and timely


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




�� Negotiator Initial review

�� Introduction call to Realtor and Homeowner




�� Property Evaluation Completed

�� Appraisal or Interior BPO per Loan Type



Additional Steps:

�� Mortgage Insurer Approval

�� Investor Approval

�� Additional liens negotiated by Realtor



All Items above steps complete

�� Application Decision 48 hours

�� Decision letters issued 48 hours