Do You Have any Choice Other than Foreclosure on a Wells Fargo Loan?

by Sally Lawrence

Tehachapi homeowners facing foreclosure recently thought they caught a break when  several large lenders announced their plans to stop foreclosures while they sort out whether or not they have correctly issued Notices of Default.   Yesterday, Wells Fargo announced it’s plan to  go full steam ahead with foreclosures.  Wells Fargo also said that there would be no delay of auction for a short sale that did not close before the auction date.

Frankly, I’m not sure that either position is a good one.  Lenders postponing foreclosures is only going to prolong the agony of clearing out the inventory and straightening out the real estate market.  On the other hand, pushing foreclosures through when there may be an alternative (like a short sale) in the works doesn’t make good sense either.

So, where’s the balance for Tehachapi homeowners?  Good question.  I’m thinking that moving forward by issuing the Notice of Default when the mortgage is in arrears is probably a good thing.  That can be tempered by some forbearance in time frame to allow a seller to complete a short sale.  There must ba a happy medium there.  What do you think might work?

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