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Resources for Agents — REO and Short Sales

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We repair most of our properties so they’re easier for your clients to finance.

Our approach

We want to see foreclosed properties become owner-occupied homes. Real estate agents play an important part in this process, so we support you in a number of ways, including:

  • Maintenance and repair: If needed, we prepare properties for sale by painting, replacing floors and carpets, and even installing new appliances.
  • Prompt responses: We respond to offers within two business days. If there are multiple bids on a property, the process may take longer.
  • A unique financing option: Financing options do exist for customers who want to buy and renovate a home. For example, our Purchase and RenovateSM program allows your clients to finance both a mortgage and home improvements in one loan. Talk with your Wells Fargo home mortgage consultant for more information about this program and other choices.

Wells Fargo process overviewShow Details

Preparing an offerThe buyer’s agent should discuss any offers with the listing agent. The listing agent will explain any required documentation, such as a fully executed contract or proof of funds/financing.

We price our properties in line with the local market and expect them to sell at market value. As with any property listing, our asking price considers the home’s condition as compared to the local market.

If your client wants to buy a property to occupy as a main residence, you’ll be able to make an offer on a Wells Fargo property during our special Homebuyer Priority timeframe. The Homebuyer Priority period allows prospective owner-occupants to have their offers considered before investment buyers.

Our calendar includes the following:

  • Calendar Days 1-7: No offers will be considered during the first 7 days .
  • Calendar Days 8-15: We will consider offers on the property only from NSP buyers, municipalities, non-profit organizations and buyers who are purchasing a property as a primary residence.
  • Calendar Days 16+: We will consider offers from all buyers.
NOTE: This policy does not apply to properties in Marketing in Eviction or Marketing While Occupied status.
Making an offerMake sure to include a fully executed contract and any other requested documentation. All offers must include one of the following:

Cash buyers don’t need a prequalification letter, but may be required to provide proof of funds.
Offer responsesOffers submitted to the listing agent will receive an acceptance or a counter-offer within two business days. If there are multiple offers on a property, the listing agent will notify all bidders and ask for highest and best offers.

If you haven’t received a response to your offer from the listing agent, you can call 877-617-5274.
Accepted offers
  • Encourage your clients to arrange for a home inspection from a qualified inspection professional. If the inspection uncovers a problem, we’ll consider further negotiation.
  • If your client is financing the property with Wells Fargo, we’ll order an appraisal.
Preparing for closing
  • Wells Fargo guarantees clear and marketable title on all properties.
  • We start the title search before even listing a property. In most cases, we can clear the title by the time we enter into a contract.
  • We set realistic and reasonable closing dates to reflect our title guarantee and to reflect the buyer’s type of financing.
  • If any issues remain, we’ll work with the buyer’s agent to set a new closing date.
  • If the appraisal or other underwriting issues occur, we’ll consider further negotiation.
At the closing
  • We’ll work with the buyer’s agent to decide on a closing location.
  • The listing agent will be present to represent Wells Fargo at the closing table.

Financing information for REO propertiesShow Details

The Purchase and RenovateSM program helps buyers finance a mortgage and home improvements in one loan. The loan is available for REO properties and traditional-sale homes. Because the loan amount is based on the home’s value after closing, buyers may qualify for additional funds. Since the home improvement costs are included in the loan, buyers can begin renovation efforts immediately after closing.

  • One loan to purchase a home and make renovations and repairs.
  • Conventional or FHA 203(K) options.
  • Available with a fixed- or adjustable-rate.
  • Includes single-family, one-to-four units, planned unit developments, and condominiums.

  • Increased financing potential: The loan amount is based on the home value after improvements, so buyers may qualify for more funds.1
  • Lower monthly payments: Costs are spread throughout the term of the loan, so customers’ monthly payments may be lower than with other financing options.
  • More choices: Gives buyers the opportunity to look at properties they wouldn’t otherwise consider, such as REO homes or properties that need significant repair.
  • Speed: Customers can start improvements right after closing.
  • Tax deductibility: Interest may be tax deductible.2
  • Financing may not be available for luxury items, such as a hot tub, pool, or spa.
  • The Purchase and RenovateSM loan requires that buyers hire a contractor.
Myth. My buyer can't get financing for a foreclosed home that needs repairs. Truth. Your buyer can purchase a home and finance repairs with one loan from Wells Fargo.
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To report any concerns with a listing broker/agent or to report any property condition or other concern needing escalation, please call 1-877-617-5274. Please note: We’re not adding agents to our network at this time, but we do appreciate your interest.

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1 Restrictions apply.
2 The interest on any portion of credit greater than the fair market value of buyers’ property is not tax deductible for Federal income tax purposes. Buyers should consult their advisors regarding tax deductibility of interest and charges.
In a short sale transaction, Wells Fargo works with the listing agent designated by the homeowner as an authorized third party. We provide process information for listing agents, but you’ll also find important information for buyers’ agents in our helpful tips, resources, and answers to frequently asked questions.
Light bulb icon.Pursuing a short sale workout may not stop foreclosure proceedings, so it is very important that the homeowner and listing agent complete requested tasks as quickly as possible.

A short sale lets a homeowner with a documented financial hardship sell the home for less than the total amount owed on the mortgage. Upon final approval, a short sale may help a homeowner avoid further collection activity or foreclosure action.

Listing agents:

Initiate a short sale — login to Equator®

Short sales guide for listing agents

Our short sale reference guide (PDF)* provides comprehensive details about our process and workflow, as well as information on estimated timelines.

  • To start the process, the listing agent must initiate the short sale via the Equator® system.
  • If the loan is not currently accepted through Equator® , start the process by calling the Wells Fargo short sale team at 1-866-903-1053.
Light bulb icon.To save time, get Wells Fargo involved early in the process. Initiate the short sale in Equator® as soon as the listing contract is signed.
Myth. My seller has to have an offer first to get a short sale approved. Truth. In most cases, the seller can be approved for a short sale before receiving an offer.

Wells Fargo short sale process overviewShow Details

Be aware that there are many more participants involved in the short sale process than on a typical real estate transaction.
All parties must be aligned before the home can be sold, and the decision to accept an offer ultimately rests with the investor.
Once a short sale has been initiated, we’ll work with you and the homeowner to complete the five phases of our process shown in the high-level overview below.
Mortgage - Real Estate. Participants involved in approving a short sale. The decision to accept an offer restes with the investor.
Phase Listing agent tasksWells Fargo tasks
  • Initiate short sale process
  • Submit complete application package
  • Check eligibility for the government’s Home Affordable Foreclosure Alternatives (HAFA) program
  • Order property valuation
  • Work with homeowner to gather requested documents
  • Submit all requested documents
  • Review investor and mortgage insurance (MI) company requirements
  • Request and obtain all required documents
  • Submit highest and best offer
  • Provide fully executed purchase contract
  • Submit estimated net sheet or HUD-1 settlement statement
  • Work with Wells Fargo and the homeowner on offer negotiations
  • Review and analyze offer when submitted
  • Verify the HUD-1 settlement statement is correct, facilitate offer negotiation with investor if necessary
  • Request investor, junior lien, and MI approvals (timeline varies based on the investor)
  • If approved, send approval letter and closing instructions to listing agent
  • Work with Wells Fargo, the homeowner, the buyer’s agent, and the buyer to facilitate the closing
  • Confirm closing date, verify all documents and confirm all approvals obtained
  • Obtain estimated final HUD-1 settlement statement
  • Issue closing package and get documents signed
  • Coordinate the home transfer with the homeowner, buyer, and buyer’s agent
  • Collect real estate agent commission
  • Verify wire amount and confirm all steps completed
  • Process the payoff and close out the foreclosure system

Process improvementsShow Details

We welcome your feedback and are continuously working to improve the short sale process to better serve you and our customers. The short sale process is a settlement of debt, so it is more complex than a regular purchase transaction; however, our aim is to simplify and streamline as much as possible through the following:

  • A team of short sale field managers to provide local assistance to real estate agents in distressed markets
  • New Equator® technology to automate the process and provide direct portal access to real estate agents
  • Training and educational tools for real estate agents, providing steps for successful transactions.
  • Continued efforts to streamline the documentation required to complete a transaction


What condition are the properties in?
We want to provide properties that buyers want to live in, so we evaluate each home and repair many of them. If needed, we paint, replace carpeting, or even install new appliances. If a home needs further repairs or renovation, buyers can ask a Wells Fargo home mortgage consultant about our Purchase & RenovateSM loan. This unique option allows customers to finance a mortgage and home improvements in one loan. The Purchase & Renovate loan also considers the home’s value after improvements, so buyers may be eligible for additional financing.
Are all your homes sold in as-is condition?
We make a significant effort to maintain and repair the vast majority of our properties. Encourage your clients to arrange for a home inspection from a qualified professional. If the inspection uncovers a problem, we’ll consider further negotiation.
Is pricing negotiable?
Yes. We use comparable local properties to set prices, but we consider all offers sent to a listing agent and negotiate as appropriate for the market.
How can I submit an offer on a property?
To avoid delays, be sure to include all requested documents with the offer. All offers must include one of the following: A prequalification letter from Wells Fargo; a credit approval letter from the Neighborhood Assistance Corporation of America (NACA); or a credit-decision approval letter from another qualified lender. Cash buyers don’t need a prequalification letter, but may be required to provide proof of funds.
How long does it take to get a response to an offer?
Offers submitted to the listing agent will receive an acceptance or a counter-offer within two business days. If there are multiple offers on a property, the listing agent will notify all bidders and ask for highest and best offers. The listing agent will request additional information if necessary and can also provide status updates on offers.
How can I become one of your agents for REO properties?
Due to lower volumes of foreclosed properties, we aren’t currently adding agents.

Short Sale

What are the homeowner benefits of a short sale?
A short sale helps the homeowner avoid a foreclosure sale and provides a planned exit strategy. The path back to homeownership is generally shorter from a short sale than from a full foreclosure. In certain situations, a homeowner may be eligible for a relocation incentive upon completion of a short sale (depending on investor requirements and eligibility).
Who are the parties involved in approving a short sale?
There are a number of decision makers involved in a short sale. These include the homeowner, the listing agent, the buyer, the buyer’s agent, the mortgage servicer, the investor who holds the mortgage, and in some cases, a private mortgage insurer and junior lien holders (such as a second mortgage holder or a local municipality or Homeowners Association that is owed money). All parties must be aligned before the home can be sold.
How should my customer / buyer make an offer on a Wells Fargo short sale?
All offers have to be submitted by the listing agent via Equator® or if the loan is not eligible to be processed through Equator® , the listing agent must contact the Wells Fargo short sale team at 1-866-903-1053.
Where do I find information on the Equator® process?
Equator® is a third-party platform that provides various options for mortgage servicers. Listing agents can use Equator® to initiate, manage, and process Wells Fargo short sale transactions. For more information about Equator® , go to For login support, contact Equator® at or 310-469-9167.
What happens when an offer is received and how long does it take to get a response?
Wells Fargo will only review one offer at a time on a short sale. The listing agent submits the highest and best offer. We will acknowledge receipt of the offer and provide information on next steps within 48 hours. Wells Fargo presents the short sale offer to the investor, but ultimately the decision to accept an offer rests with the investor. The timeline for offer review and acceptance or counteroffer varies by investor.
Is there a benefit to being eligible for the government’s Home Affordable Foreclosure Alternatives (HAFA) program?
Eligibility under HAFA means that the homeowner can be approved for a short sale prior to an offer being received. The investor provides a minimum net proceeds amount they’re willing to accept, which helps to speed up the decision process once an offer is received. In addition, the outstanding mortgage debt is settled through the program and no legal action can be taken to collect the debt after the short sale has occurred.
How are commissions paid?
A commission rate of 5 – 6% for real estate agents is generally allowed. However, this may vary based on investor guidelines. Commission fees are confirmed during the negotiation process and are paid by Wells Fargo Home Mortgage at settlement.

Neighborhood Assistance Corporation of Amercia (NACA)

The Neighborhood Assistance Corporation of America (NACA) is a non-profit, community advocacy and homeownership organization.

Hours (Premiere Asset Services)

Mon – Fri: 8 am – 7 pm
Central Time
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