What is the Wachovia Fast Track Solution Program?
Wells Fargo, who purchased both Wachovia and World Savings Bank, has determined that it makes more sense financially for everybody involved to create a streamlined program to facilitate market value sales on loans that were issued by Wachovia, World Savings, and Golden West. This program was tested in Northern-Central California in 2009 and was introduced statewide in 2010. Typical approval times for these sales have been 10-14 days. This is amazing when considering that the average short-sale approval time for most banks is 2-3 months, and for some of the larger banks it is 4-6 months. Simply put, this program creates a very friendly solution for Wachovia borrowers who are underwater.
Can I take advantage of the Wachovia Fast Track Solution?
If you owe more than your home is worth and have a Wachovia or World Savings loan, you now have a great option to get out of your over-burdened property without having to risk having a foreclosure or missed payments ruin your credit. You can sell it for the current value, gain a full release from Wells Fargo, and be free to move-on. You will avoid having a foreclosure put a huge black-mark on your credit. You will no longer have to lose any sleep about your over-debted property and mortgage. Simply put, you will live to fight another day and be able to buy a new house at current market prices before your current house returns to the amount that you owe.
Are there any other benefits to the Wachovia Fast Track Solution?
Wachovia is offering each homeowner either $2,500 or $5,000 as an incentive...even if the property is being used as a rental. Also, Wachovia waives their right to pursue the deficiency (difference). Many lenders do not waive this right.
How does the Wachovia Fast Track Solution process work?
While many banks have far-away call centers set up with layers of bureaucracy to work through for short-sales, Wachovia has introduced local managers to our area who we have direct access to. Once your property is listed, it is placed in the program. Upon receiving an offer at fair market value it is submitted for approval. Within 10-15 days we should either receive approval or be told of an acceptable price!
How did Wells Fargo come up with the Wachovia Fast Track Solution for Wachovia and World Savings Mortgages?
Wells Fargo has determined that it would be less costly to work out short sales on these loans, which were acquired as part of the acquisitions of Wachovia and World Savings, then it would be it proceed with costly foreclosure processes. Wachovia has had an unusually high default rate on their loans, and since Wells Fargo acquired their portfolio at a discount, they can afford to write these loans off of their books.
How does the Wachovia Fast Track Solution compare to short sales with other banks?
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Wachovia Fast Track Solution |
Most Other Banks |
Criteria for eligibility |
10 minute interview with a Wachovia Fast Track Solution Manager (either in person or by phone) who has complete authority to issue approval. 1 main question: "Why can you no longer afford to make your payment and keep this property?" |
Vaguely defined "hardship"…usually looking for job loss, divorce, medical issues, etc. |
Must be late on payments |
The Wachovia Fast Track Solution does not care if the borrower is completely current on payments. This allows the seller to keep credit in tact. |
Most banks will not consider a short sale unless the borrower is at least 60-90 days late and on the verge of foreclosure. |
Verification |
The Wachovia Fast Track Solution does not ask seller to submit any financial documents |
Typically require last 2 years of tax returns, bank statements, paystubs, financial statements of all assets |
Review & Approval Process |
The Wachovia Fast Track Solution Manager who interviews the borrower has complete authority and is the only person who reviews the file & issues approval. |
Many banks send the file through a maze of "negotiators" who ultimately are unable to make any decision without getting approval from the private investor that owns the note behind the loan. |
Timeframe to get approval after submitting offer |
The Wachovia Fast Track Solution issues approval within 10 days. |
Average is 3-4 months. A few large banks average 6 months, and some cases have been known to take 12-18 months. |
Deficiency Debt (Difference Between Sale Price & What is Owed) |
The Wachovia Fast Track Solution Waives & Forgives Deficiency |
Many Banks will legally reserve the right to pursue the borrower for the deficiency at a later date |
Seller Contribution to Sale |
The Wachovia Fast Track Solution does NOT ask for any seller contribution. |
Many Banks ask the seller to contribute money to the sale or ask the seller to sign a promissory note for all or part of the deficiency |
Seller Incentive |
The Wachovia Fast Track Solution will pay the seller $2,500-$5,000 as an incentive. |
Completely unheard of for any other bank to allow the seller to get any money out of a short-sale |
Non-Owner Occupied Properties |
The Wachovia Fast Track Solution treats 2nd properties & rental properties exactly the same as primary residence properties, including the $2,500-$5,000 incentive |
Most banks are even less cooperative if the property is not the seller's primary residence. |
Credit Verbiage |
The Wachovia Fast Track Solution reports "Paid in Full, Settled for Less Than Owed". This is the friendliest verbiage possible and usually results in only a 60-100 pt FICO movement |
Many banks continue to report the balance of the loan as being owed and past due, further damaging credit |
Flexibility once bank has given initial approval and buyer has opened escrow |
If a buyer backs out, Wachovia Fast Track Solution will honor their approval for a new buyer. |
Most banks will make the process start all over again if the original buyers backs out. |
