With a short sale you may have the option to sell your home for less than the amount owed on your mortgage. By doing this, you may be released from your obligation to pay back your primary mortgage under its original terms. And as your mortgage servicer, Wells Fargo Home Mortgage may accept the proceeds of the sale as payment in full. This option can help you avoid a foreclosure sale and may be considered even if the foreclosure process has started.
Depending on your situation, you may be eligible for a short sale through the federal government’s Home Affordable Foreclosure Alternatives program, or through a different program.
As the homeowner, you:
- Avoid a foreclosure sale — in some cases the foreclosure sale may be postponed once a written, signed offer is received and approved by Wells Fargo Home Mortgage
- Can live in your home until the new owner closes, giving you time to make other living arrangements
- May be released from your obligation to repay your mortgage balance
To get the process started, call to discuss a short sale with a Wells Fargo Home Mortgage representative. Here’s what you can expect:
- You provide us with your financial information, explain your situation and why you are unable to make your mortgage payments.
- We review your information and determine if your mortgage qualifies for a short sale.
- If your mortgage qualifies, we’ll work closely with you and the real estate agent currently helping you (or one who will be helping you) to determine an acceptable sales price and the amount of time you have to list and sell your home. Together, we’ll work through the details and steps to sell your home at an agreed-upon price so you can avoid a foreclosure sale. Please keep in mind that the buyer of your home may not be anyone you have a close relationship with, including family or friends.
Review the Home Affordable Foreclosure Alternatives (HAFA) eligibility matrix (PDF*)
Review the Income Document Requirements for HAMP and HAFA (PDF*)
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Wells Fargo Bank, N.A. is required by the Fair Debt Collection Practices Act to inform you that if your loan is currently delinquent or in default, as your loan servicer, we will be attempting to collect a debt and any information obtained will be used for that purpose. However if you have received a discharge, and the loan was not reaffirmed in the bankruptcy case, we will only exercise our right as against the property and are not attempting any act to collect the discharge debt from you personally.