Comments on: Wells & Wachovia Suck! The Mortgage Servicing Follies Continue…

By: Fred lorocco

Fred lorocco — Mon, 07 Dec 2009 06:32:17 +0000

Wells Fargo = White collar fraud!!! I asked for a mortgage modification from wells Fargo and after 6 months of waiting my mortgage was reduced by $90.00 per month. How did they do it?? They increased my mortgage term from 30 years to 40 years. These people are garbage.

By: claudio saavedra

claudio saavedra — Tue, 29 Sep 2009 05:36:54 +0000

Same situation than everyone here. Fighting with this guys for over 7 months trying to get a loan mod. Everyday I call they have different kinds of answer. Let’s call FTC. Anybody having problem with wells fargo denying loan mods and giving us a run-around should file compliant with FTC 877 382 4357. They say if lot of people complain there will be investigation and follow up with class action suit.

By: rick

rick — Sat, 29 Aug 2009 19:17:28 +0000

my wife and I purchased in sacramento, ca. in 1997 for $92,500. re-fi with world savings 2006 home was worth $350K. my wife lost her job in july 2008, receives unemployment. wachovia did a temp bandaid in 8/08 but we can not afford payment any more!
last payment we made was 1/2009, have heard nothing from them, they will not lower to fair market value of 115K, we could afford payment on that. I have been working/paying taxes since 13 years old, they got a lot of my tax dollars from the bank bailout, but eventually (i guess) will take our home and end up with not much!

they say to call but we just get customer service and they say to apply for another mod. what the sam crappy mod you gave us before? we feel bad enough already and they will give us a unafordable 40 yr loan! i don’t think so!

Will be renters again I guess, hope we don’t end up on street!

By: Jennifer S

Jennifer S — Sun, 23 Aug 2009 00:21:54 +0000

Hi,
I dont know Florida but I do know Ca and what you are dealing with is called “recourse”. In Ca any loan that is not an original purchase loan on a primary residence or a loan that was used “to construct or “substantially” improve the primary residence (I still scrtach my head on the “substantially” part) has post-loss recourse. The lender will send you a 1099 for their losses and you will ahve to pay income tax on that loss unless you can document insolvency. Go on the IRS website and down load that worksheet and talk to a tax person. Many websites and loss mitigation poeple will give you bad advice like “one they send the 1099, they can not enforce the recourse and you wont be responsible for the loss”. Well last time I checked the lender and the IRS are two different entities. According to one of my favorite CPA/Tax Atty/ RE atty’s David Hellman, that is correct and the taxation and liability issue are seperate. However, and I am happy to share the FAQ we have on this, according the Hellman, the IRS considers that post-loss 1099 for debt relief that the lender sends you is supposed to be a “final” document. But what if the lender sells the post-loss debt to a collector for pennies on the dollar? If the lender or any assignee of the lender collects money from you via wage attachment, etc., they have to reissue the 1099 to be less the amount that they collected. Then you would have to amend your 2009 return with the amended 1099. So this boils down to an accounting issue really. If I were a collector that was going to make my primary dollars off of this, I would just hire an accounting staff to accomodate the mess. What I do not know is if an assignee can actually amend a 1099 for the original creditor or not and if there is a statute of limitations on the number of years they can collect. They can collect post-loss, and post debt relief 1099, but will they faced with the accounting consequences? Lets not leave out the collection companies that wont care about the process victimizing people who dont know the requirements and who can afford to hire an attorney to solve the problem. I expect this to be a big problem in the coming years. Please make sure you dont have capital gain on top of all this as many folks do. The IRS will charge you tax on the difference between your sale and your basis. Your basis is not what you owe on the property; it is what you paid + cost of improvements – depreciation. Again a tax person is really integral in making these decisions. Often foreclosure is the better alternative if you have gain that could be reduced by a cheap auction sale though that is a risk too because you never know if a buyer will buy at a reduced opening bid at auction or of the property will revert back to the bank. Lastly, I have person at Wachovia who approves our short sales in 7-10 days. She ALWAYS lets our customers our of recourse liability as a part of the settlement. Maybe I can hook you up with her counterpart in your neck of the woods. PS: if your loan is < $729,750 and the true investor on your loan is Wells Wachovia they must abide by the HAMP non-GSE contract they have with Fannie Mae and must use the HAMP standard waterfall to assess a modification for you. You will not clear the Fannie Mae NPV test due to non-owner status, however page 34 of the HAMP guides specifically include non-owner properties under HAMP. It is likely that if you know your rights under HAMP you could get a fixed step-up rate modification that will cut your payment by some random amount not to exceed 50% of what it is now. If they need to forbear an amount at 0% on your loan to get you to a 31% DTI, the interest-bearing portion of the loan must have an LTV of 100% or greater. And there is only one dept we know of in the country so far that is HAMP-based for Wachovia. They only started intake on non-GSE on 8/3. My background is a Sr. Loan Underwriter. Now I counsel people on HAMP mods and short sale. You have options. When called in for your mod did they tell you you didnt qualify for "the govt. program" or did they tell you "we are not doing mods call back in two months"? The front line people only have a flag on their computer screen that says wether or not you qualify. If the little flag is not on, no soup for you. That flag is driven by the other govt program, the FDIC NPV model. With any lender that uses the FDIC model in its truest sense, borrowers will always receive a decline if they are not 60 days down. Once you are 60 days down at Wachovia, your little flag goes on. The HAMP product is a better mod but you have to understand it because the bank does not understand it or they dont care. And the California Department of Real Estate doesnt think consumers need any assistance with their mods. I invite them to work here for a week. Good Luck.

By: John G

John G — Sat, 22 Aug 2009 13:05:09 +0000

I’m trying to work with Wachovia now on a short sale……got the approval quite easily, although it comes with strings…..

I bought an historic home in Florida for over 600k over 4 years ago which I planned on renovating. Put 20 percent down, took out a first mortgage with American Home Servicing. Put over 800k of my own cash into the renovation. Halfway through the renovation Wachovia contacted me and asked if I would like to get a line of credit on the place. I said yes, asked for 200k and they gave me 425k as the appraisal came back higher than I had anticipated. Finally finshed the house and drew off the line of credit for the final renovation and carrying costs.
THEN the prices began to fall and my business came to a standstill (real estate sales). Prices in my area actually have fallen over 50 percent from peak and I was in trouble. With no income coming in, I had to live off the line of credit while attempting to sell the house, along with 2 other rental properties that were loosing value daily.
It’s been 2.5 years that I have been trying to sell my properties. The equity line was spent in my efforts to maintain and market them. I was forced to offer every one up for short sale. The two rentals were sold at substantial loss. Finally, two months ago, I received and accepted a 700k offer for the home I renovated, understanding that I would loose every penny that I put into it.
We are set to close now in several weeks. The first mortgage will be paid off in full and the 2nd (Wachovia) will be paid off arond 25 % (100k). Wachoiva slipped in an agreement that they are requiring me to sign that keeps me on the hook for the deficiency for the rest of my life!
I have asked Wachoiva to release me from signing this suicide letter. I have 20k in savings to my name, no 401k, no stocks, very little income and as a 54 y/o under unemployed male my financial prospects look bleak. My attorney says they are forcing me to file bankruptcy and says F’m…..let it go into foreclosure and let them receive nothing. It all makes me sick.

By: Mainstreet

Mainstreet — Sat, 13 Jun 2009 17:06:30 +0000

Wells Fargo/American Servicing – They are a joke!!, but then again all the other banks are in that similar situation. My stomach turns everytime i here that these banks are requesting more stimulus money…where is the accountability of the first millions handed to them, big bonuses i guess, i definitely know it wasn’t used to help the homeowners, as to credit cards, those percentages banks are charging are up the Roof!!!, i called to get my credit card interest down from a 29% to an 18%, paid my credit card on time, never 1 day late, was proactive in addressing that now the payment is too High, well guess what? customer service froze my credit line and told me that they are not required to lower my interest rate, i explained to them that i can understand if the interest rate went up gradually, but from a $95 dollar payment amount up to $160 was something unexpected. Long story short – this was my comment to them – Who is the brains behind all this, is it financial business for dummies? banks rather see you go into to bankruptcy then to adjust your rate, then blame you for your credit score, same applies to loan modification, banks or investors are willing to foreclose your home loss $100,000 of thousands of dollars and turnaround and sell it for half the price, then request more bailout money because of bad loans as they call it.

We are in a no win with banks, they tell you that in order for you to qualify for a modification you need to meet several criterias, which is..get your front-end which is your net earnings divided by your current mortgage payment and see at what percentage of high risk your in, then they will take your back-end which is all your revolving debt [credit card, car payment, etc] with that total also divide by your net earnings and obtain a percentage of that. Well if we do the math which i did, my debt to ratio was under 40%, and under FHA this is not a high risk borrower, but either way i was rejected by American Servicing which is also afiliated with Wells Fargo.

Well this doesn’t stop here, not only was i rejected, a week later i got a letter in the mail letting me know that they were putting my house for short sale, i never requested a short sale, another thing to add…wells fargo had inspectors come to my home and take pictures of the condition of the property without my knowledge, o’k i said, because i acknowledge i owe the bank and they are entitled too, but it doesn’t stop there, i am being charged additional fees to pay for this inspector, the bank has been charging me.

There is no compassion, we are at an economical crisis, and unfortunately banks are taking advantage and hiking up interest rates, fees, and anything else they can think of to obtain money, this is very sad, this to me is WHITE COLLAR THIEVES!!!! AND NO ONE SEEMS TO TAKE THEM DOWN.

By: Dana

Dana — Tue, 02 Jun 2009 15:00:36 +0000

World Savings FRAUDULENTLY wrote these loans. Request a copy of your “application”. More than likely, it isn’t what you signed. Our application was completely REPLACED with a FRAUD. The loan broker changed our income- increased by $4,000/month, changed our social security numbers and birthdates. Therefore, WORLD SAVINGS could NOT have underwritten the loan! The brokers and WORLD worked together to perpetrate this FRAUD against us! They knew we would pay and pay, and then lose our homes to them!

I wrote to my Congressman, who wrote the CEO of Wachovia strongly asking him to help me. No response.

There is a CLASS ACTION LAWSUIT against WORLD SAVINGS/WACHOVIA. David Arbogast is the attorney. I understand that unless you opt out, you are a member of the class.

By: andy

andy — Sat, 30 May 2009 18:11:31 +0000

I am also trying to modify my loan with wells and getting nowhere with them still in review while foreclosure already began. i will take the advice and call FTC something needs to be done too many people suffer and lose their houses because of wells fargo simply not giving a damn about homeowners cooperating and trying their best to hold on to houses.I personally think president’s plan did more bad than good,people were under the impression that modifying loans would be easy for everybody having problems,only to be told by the banks that you have to fall behind on payments to be eligible for modification,so thats what they did only to their surprise modification was denied and they got so far behind on payments so the house is in foreclosure. what are they suppose to do now. If that is not criminal on wells fargo’s part what is? we all need to fight togheter for our houses. god bless

By: dorothy burzynski

dorothy burzynski — Sat, 30 May 2009 16:15:39 +0000

anybody having problem with wells fargo denying loan mods and giving us a run-aroud should file compliant with FTC 877 382 4357. They say if lot of people complain there will be investigation and follow up with class action suit.

By: dorothy burzynski

dorothy burzynski — Sat, 30 May 2009 16:05:54 +0000

i’m also going thorough a nightmare trying to modify my loan w/Wells Fargo my story is just like the others getting a run around from them everytime i call it’s a different story they drag the process of modifing. i think they want to foreclose on my property because i pay pmi so they will not lose either way.