Complaint Review: Norwest Mortgage - Wells Fargo

In 1996 I purchased a duplex in Anchorage, Alaska through a local mortgage company called City Mortgage for $208,000.00. I was to receive a fixed rate FHA mortgage at 6.75% APR. The transaction was supposed to close in December 1 of 1995, but it didn't actually close until January 3, 1996. Because of the freezing weather that winter we took early occupancy on December 15th 1995.



At the closing, while signing all the many documents, I discovered that the loan I was getting was not a FIXED RATE but rather an ADJUSTIBLE RATE mortgage. After an hour of discussions with the mortgage company, they said that I could convert the loan in a year to a fixed rate with no charges for the service. I agreed and signed and closed.

Soon thereafter, the mortgage was sold to Norwest Mortgage. When I inquired a year later about converting my loan Norwest Mortgage told that there would be a large fee to convert the loan, more money than I could afford.

By the third year into the loan I was having difficulty making the payments. I had had a tenant that was not able to pay her rent and I had to evict her. There was several thousand dollars of damage that I inherited along with several months of lost rent before and after I was able to evict her.

My loan ended up in default and I eventually was able to gather enough money to bring it back out of foreclosure. This cost me in excess of $15,000.00. My monthly payments started at $1,683.00 per month, and by the third year they were up to $1,895.00.

By the end of the forth year I had applied for a loan modification to have the interest rate somewhat lowered and fixed. I was now at almost 10% APR. Norwest was going to lower my interest rate to 9% and fix it at that rate. This was supposed to lower my payment back down by $100.00 a month. This whole process only cost me an additional $2,010.00 in fees, of which I sent them a check.

The very day that I received notification that I had been APPROVED for this loan modification, a process server was at my front door tacking up a notice of public auction. This indicated to me that somewhere within the Norwest Mortgage system something was definitely wrong.

By now I have exhausted all of my financial resources and could not afford to buy myself back out of foreclosure a second time. In 2000, I filed bankruptcy and my $200,000.00 duplex went into foreclosure. I literally lost everything except a small amount of furniture, my personal effects, a 5th wheel trailer and a truck. My credit is totally shot. I am homeless.

I have now become a real estate broker and have learned a lot about how this system really works. It has taken me the last 4 years to finally get back on my feet. I live in my 5th wheel in the summer and in my office, that I rent, in the winter. I have to borrow a shower in the winter because my office only has a sink and toilet. I cook on a 2-burner hot plate and a toaster oven.

I still have several years to go before all of these credit issues will be off of my credit report so that I can buy a home.

The amount of anguish and stress that I have gone through has been overwhelming. I am a good person and have never tried to cheat anyone out of anything. I do not think this was a fair treatment of even ethical. I was lied to and cheated out of my home and over $20,000.00 in equity, not to mention my credit rating.

If there is a class action suit ongoing with these guys, I would appreciate hearing about it.

Sue
Anchor Point, Alaska
U.S.A.