BiggerPockets

Wells Fargo Kills Transactional Funding Deal

Wednesday, January 13

I am seeing more and more lenders kill short sale deals and wholesale flips.  I guess this is no surprise to most people reading the BiggerPockets site, but thought I'd share the bad news and ask if anyone has found solutions.

Just today, we had a deal right at the finish line that Wells Fargo killed.  We had already funded the Side A-B purchase for the investor, and the end buyer was at the title company ready to sign!  Wow.

I am trying to get more details from the escrow agent to find out exactly how and what reasons were cited.  It was set-up as a simultaneous close, but the lender ahd received all documents and disclosures.  I suspect that the "final" approval of the HUD was reviewed separately from the original approval for closing.

I know Bank of America has been on a rampage lately against double closings, but this is the first time we've been stopped by Wells.  Anyone else have this experience.