Wells Fargo Home Mortgage Wells Fargo Home Mortgage Reverse MORTGAGE Servicing, MAC D3348-018 Being in the financial world in my younger years I realized I did not want a reverse mortgage that could be sold to another company. This question I asked when I was negotiating and was one of the largest reasons I used Wells Fargo reverse mortgage as the agent assure me more than once that this could not happen with the contract I was signing. Today August 18th 2017 , I get a letter through the u.s. mail dated August 11th 2017 stating that my account is being transferred for servicing by Champion mortgage of Dallas Texas. Wells Fargo is saying that very are ending their service on August 31, 2017. Not only have they not kept their word about selling to another company they also have given their customers a very short notification of this doing. Everything about this is unethical and should be reckoned with. Fort Mill Virginia
Being in the financial World in my younger days I did not want to acquire a reverse mortgage that could be sold to another company. When negotiating with the agent of Wells Fargo reverse mortgage they assured me more than once that this contract I was signing prohibited them Wells Fargo reverse mortgage could not and would not sell to another company. Today August 18th 2017 I received VIA u.s. mail a letter from Wells Fargo reverse mortgage dated August 11th 2017 stating that my account starting September first 2017 will now be service and transferred to Champion mortgage of Dallas Texas. Not only have they deceived me about the contract I signed, they are closing account August 31st 2017 giving little time to this issue as today is Saturday and can only speak to someone doing business hours. The practice of notification and reneging on their contract, I feel as a rip off and very very unethical on their part
1 Updates & Rebuttals
Jim
Anaheim,California,
USA
Reverse Mortgage Paperwork
#2Consumer Comment
Mon, August 21, 2017
Being formerly in the financial world, you should know that any mortgage (conventional or reverse) contains a clause in the papwework indicating they have the right to sell the paper associated with the reverse mortgage. There would be no way to get any mortgage of any type without such a clause in the contract. The clause exists not only to protect them, but to protect you. Contractually speaking, if Wells Fargo went out of business doing reverse mortgages (which is what happened in this case) and they were prohibited from selling the paper as per your request, then the bank has the right to call in the reverse mortgage and you would be forced to pay everything outstanding on the mortgage, which could be several thousand dollars, based on how much has been pulled out on the reverse mortgage. You would then be forced to secure another reverse mortgage at terms not very favorable to you in order to avoid possible bankruptcy or foreclosure on your home.
I won't even get into what a bad deal reverse mortgages are. To me, that's the real rip off. However, the bottom line in your case is you may like Wells Fargo and hate the institution you're reverse mortgage is now at. However, you now avoid having to renegotiate the reverse mortgage and spending additional funds for a new reverse mortgage simply by Wells Fargo selling the paper. Best of luck to you....