3rd party authorization form bank needs for a short sale? (disclosures, auction) - - City-Data Forum

bargainhigh · 05-28-2010, 11:49 AM

Hello,
We just got an update from the listing agent on a short sale we have bid on and wondering what this could mean?

[SIZE=2]"We have been wrangling with a 3rd party authorization form that Wells Fargo needs."

Thank you! [/SIZE]

skylinet · 05-28-2010, 12:07 PM

?? is that in reference to the form that the seller needs to sign to authorize the listing agent/negotiator to speak with the bank? That's a simple form that the seller can request from Wells, in some cases a realtor can use a generic form with the loan # on it. Or are you talking about Wells Fargo is the third party in the transaction? Kind of confused as to what you are asking.

rjrcm · 05-28-2010, 12:52 PM

You should ask your agent (if you have one), or the listing agent to clarify. As skylinet said, it could mean that the seller has to authorize the listing agent (3rd party) to negotiate with Wells Fargo. Or there may be another party involved.

bargainhigh · 05-28-2010, 02:52 PM

Thanks everyone! Yes, asked our agent and he didn't know what it means, the listing agent isn't fond of giving details. Yes, Wells is the bank that the short sale is going through.

Brandon Hoffman · 05-28-2010, 06:30 PM

Third party authorization is simply a signed letter from the seller sent to the bank authorizing the Realtor to speak to the bank on the sellers behalf. It's really just faxing the letter in to the general 1-800. If the listing agent is struggling with that very simple first step, I'd be very concerned about their overall knowledge of a ss. The chances of an agent that isn't familiar with a ss closing it aren't great. I usually do that as soon as I put the property on the market, before I even get an offer.

I'd have your agent grill their agent about his ss knowledge and if he is lacking I'd say run away.

bargainhigh · 05-28-2010, 07:43 PM

Thanks for the response! Here was the entire email

[SIZE=2]"We are doing everything possible to get this through. I have a short sale negotiator working on this. We have been wrangling with a 3rd party authorization form that Wells Fargo needs. My clients are doing everything need to do in order to get this sold."

Our realtor told us she has closed short sales before, and she has hired an outside negotiation team. Should we still be concerned? Our agent did grill her in the beginning, when the sellers acceptd our offer to find out how she handle short sales, and he was pleased...

Thanks!
[/SIZE]

Brandon Hoffman · 05-28-2010, 08:15 PM

Go back and ask for a list of docs the seller has given the list agent and what list agent has submitted. They may not be willing to discuss those details with your agent but they should already have collected and submitted with offer at least: ERS, Listing info, 3rd party auth, contract, disclosures, wells fargo arms length and short sale disclosures, seller hardship letter, 2 most recent pay stubs/tax returns/bank statements, financial disclosure, copy of earnest money, copy of buyer pre-app letter, pre-lim HUD, list of necessary repairs.

That's why I say if they are stuck on the 3rd party authorization, the agent isn't even able to discuss the ss with the bank yet. That should have been submitted prior to offer. It makes me wonder if the agent(s) really know what they are doing. I'd be concerned.

bargainhigh · 05-28-2010, 08:35 PM

Thanks for the info. Could you tell me how an inexperienced short sale Realtor could cause a short sale to be denied? Or would the process simply just take longer? We really love this house and nothing else has come on the market as of yet, that we do like...

Silverfall · 05-28-2010, 08:41 PM

Wells Fargo might not be the holder of the note. I just had this happen where I had to redo the authorization form because it needed to be made out for a different party. In my case the mortgage holder subcontracted with another service when a house was close to auction for foreclosure services. While I had an authorization form for the original bank, I didn't for the mortgage company subcontracting out the foreclosure process...and I needed to talk with them too. While, it was irritating, I wouldn't call it wrangling.

They might be in a similar situation where they need to have multiple authorization forms.

bargainhigh · 05-28-2010, 08:55 PM

Quote:

Originally Posted by Silverfall

Wells Fargo might not be the holder of the note. I just had this happen where I had to redo the authorization form because it needed to be made out for a different party. In my case the mortgage holder subcontracted with another service when a house was close to auction for foreclosure services. While I had an authorization form for the original bank, I didn't for the mortgage company subcontracting out the foreclosure process...and I needed to talk with them too. While, it was irritating, I wouldn't call it wrangling.

They might be in a similar situation where they need to have multiple authorization forms.

Thank you for the information!!