Wells Fargo Home Mortgage Total Confusion at Wells Fargo Home Mortgage in Offering Assistance in Housing Crises Does Not Appear-called Toll Free Numbers Internet
This has been a very difficult year for many people. My wife died of cancer almost 5 months ago and I was the primary care giver for 5 months before that and unable to work. My job is in the financial services sector and on straight commission and needless to say even when I could work, there has been very little business. I had money in savings, but through medical expenses and no work, it has been depleted rapidly.
I have contacted Wells Fargo Home Mortgage several times about either reducing the rate on the mortgage and principal balance based on a conservative 30% drop in home values (based on my direct conversation with a county tax assessor and may be more than that with an epdemic of foreclusres in this area). They had no programs available for assistance and finally referred me to HUD and Hope for Homeowners. I ended up with another number that went to their collections department. They said any adjustments made would adversely affect my credit and any reduced rate of payment, the interest lost would be added back to principal.
In essence, they were offering nothing and destroying my credit rating. I have not fallen behind on my mortgage yet but on the edge. I didn't want to go into default and completely wreck my credit rating and had thought about not making a payment for 90 days, but reading through some of the other entries, Wells Fargo either doesn't get what is going on in the market or they want to be owner of the largest number of homes in the US. They indicated that there was a magical date on their calender of December 16th that they were introducing a streamlining program that might help-haven't been able to get any more information on that. People in their refinance department also have no information about assistance to struggling home owners trying to meet their obligations but find themselves in dire circumstances.
I really should have known better than to go with Wells Fargo. Before I did this large mortgage with them, my son went in to one of their branches locally to get change for a $100 bill before we went to the local farmer's market. They would not give him change for a $100 bill because he didn't have an account with them-great PR and winning business. He wasn't cashing a check. Total inflexibility and confusion on their part has lead to frustration and not knowing what to do next.
Lee
Redding, California
U.S.A.
2 Updates & Rebuttals
Mike
New York,Utah,
U.S.A.
Comments
#3Consumer Comment
Mon, December 29, 2008
"My job is in the financial services sector and on straight commission and needless to say even when I could work, there has been very little business."
In order to pay a mortgage, you need income. Not to be rude or anything, but if you have no money, how can you afford to keep a home you havent paid for?
"I have contacted Wells Fargo Home Mortgage several times about either reducing the rate on the mortgage and principal balance based on a conservative 30% drop in home values (based on my direct conversation with a county tax assessor and may be more than that with an epdemic of foreclusres in this area)."
WF services the mortgage for another investor, likely Fannie Mae or Freddie Mac (the GOVERNMENT). Typically the owner (investor) of the loan does not simply forgive principle just because tax records say the home is worth less. Hell, if that were the case, as soon as I bought a new car and drove it off the lot, the bank should reduce my car loan by 20%, right? Get in a car wreck, reduce it 100%, right? No. You made the committement to repay money that you borrowerd to buy it from someone else. WF often does not even have the ABILITY to forgive that (unless they want to get sued) even if they wanted to.
"They said any adjustments made would adversely affect my credit and any reduced rate of payment, the interest lost would be added back to principal."
Yes, it will. If you cant make your payments, it's going to affect your credit. If you modify your loan, interest will be "capitalized." This is normal. Not unique to WF. Not unique to banks in general (not to be condescending, but if you are in the Financial Services industry as you claim, you should know this).
"Wells Fargo either doesn't get what is going on in the market"
Wells is actually a pioneer in many ways for helping homeowners when they can. Compared to others, they help a significant number of borrowers whose loans they do own and do what they are allowed to do on the rest.
"or they want to be owner of the largest number of homes in the US."
When WF forecloses on an investor's (Government's) loan (again, they dont own it), the investor subsequently owns the property, not Wells Fargo.
"They indicated that there was a magical date on their calender of December 16th that they were introducing a streamlining program that might help-haven't been able to get any more information on that."
Changes to loan programs and products that affect thousands/millions of borrowers typically need to be system-programmed and tested to make sure they work right, have employees trained on what to do, etc. The big pieces, like system changes and enhancements, are typically 'implemented' at once (possibly, say, over night on Dec. 15th).
"People in their refinance department also have no information about assistance to struggling home owners trying to meet their obligations but find themselves in dire circumstances."
The internet is a powerful thing. Read the news about the programs available. Learn the qualifications and see if you meet them. Use Google to find it. The answers are out there. Hope for homeowners even has a website.
Bob Pace
Silver Spring,Maryland,
U.S.A.
Streamline Modification
#3Consumer Suggestion
Thu, December 25, 2008
This is a new program banks are utilizing for homeowners who are upside down in the mortgage. Its different than Hope for Homeowners as the bank doesn't eat the loss. Its a more fair way to keep people in thier homes without reducing the amount owed. I am of the belief that if you agreed to pay X for a home, it is your obligation to repay X or give up the home. Otherwise, they would have to reduce everyones principal, not just people w/ lack of income and negative equity. The goal is to make your monthly payment 38 percent of your gross income. They will first look to extend the term of the loan to 40 years, if that doesn't get it there, they will then look to reduce the interest rate to the floor rate...and if that doesn't get it there they may forebear principal. Meaning if you owe 500K on the house and after extending your loan term to 40 years and reducing the rate, you can still afford only a 350K loan, they will take that other 150K and put it off to the side (not gaining interest) that will be payable upon maturity of the loan.
I personally believe this is a win-win for everyone involved. I would suggest gathering your pay stubs and monthly bills and giving thier collections department a call to apply. I believe most banks are only doing this for conventional loans though. Meaning if you are in an FHA or VA loan, the chances are slim as these are insured and the company will not take a loss in the event of foreclosure.