'Blacklisted' by Wells Fargo for 'Flipping'?
As a realtor I'm representing an investor friend of mine who had an accepted offer on a short sale property where the lender is Wells Fargo.
The offer didn't get approved, despite it being for asking price and the buyer placing $20k in escrow, because his LLC was identified as one that the lender considers a "flipper"?
I've never heard of this before, has anyone else? I haven't seen the email which was sent to his attorney by the bank. Additionally, the seller's lawyer claims the buyer is "Blacklisted" by Wells Fargo. The only thing my friend can think of is that he did close on a property last week with the same LLC where it was a short sale with WF as the lender. But he closed successfully.
WTH?! Smh.......
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I know that not long ago, WF wouldn't finance the buyers of my flips. If I received an offer from a buyer with a WF pre-approval letter I'd ask them to switch lenders or I'd reject the offer. They simply refused to do the loan if the house was owned for less than 90 days. I don't know if this is still true (haven't had a WF buyer lately for some reason) but it sure seems that WF has something against flipping!!