Screwed Over By Wells Fargo And Want To Do Something About It! Too Late?

by Ashley
(Rochester, MN USA)




It would take me forever to share my Wells Fargo story so here is the short version:

Applied for modification in March 09. After making all trial payments, I received a different agreement than I had already signed. The terms were not beneficial to me so I denied it. That was in Oct. 09.

After hours, dozens of phone calls, and sending at least 7 faxes with information that they "never received", I finally got in contact with the Office of the President of Wells Fargo in May 2010.

I was reassured that everything would be taken care of. Then, I get a call from loss mitigation in June notifying me that I needed to pay $6000 in back payments and interest and I told her about the modification and she tells me that the modification was denied. We had made 13 trial payments at this point. She said we had to start the process over.

I get my new agreement (this would be the 4th) and they lowered my interest rate to 4.25% (they can go as low as 2%) and extended my loan to 40 years!! I tried to argue it but I was told by two different women at the Office of the President that they "had to" extend the loan.

On the Freddie Mac website, it states that the loan should be extended if lowering the interest rate to 2% did not make the payment affordable. I was told that Wells Fargo could only lower it by 3%.

I was told I had to sign the agreement or my modification would be denied. Because of the modification, I had accrued over $5000 in interest and escrow shortage because they kept screwing up, delaying the modification. I made 11 trial payments I believe under my normal payment so of course I have to pay that back.

That was finalized as of Sept. 1 2010. I am wondering if it is too late to go back at Wells Fargo and complain about the shady practices they are involved with. I was screwed over by Wells Fargo and I want to do something about it!

Wells Fargo Mortgage Loan Modification Answer:

by Wells Fargo Mortgage Loan Modification Expert - Dan North

First start filing complaints on your bank/servicer:

Escalate the Case to Senior Management at Wells Fargo Then Directly to Freddie Mac

Since you went to the Presidents Office your case was already escalated to senior management.

So now it is time to go to Freddie Mac who is actually the enforcement arm for the HAMP program. Here is their Phone: 1-800-FREDDIE (for more information go to Case Escalation for counselors)

Extending the loan before lowering the interest rate to 2% is a violation of guidelines. I checked the new guidelines, effective on 10/01/11, and the sequence of modification will not changed.

Here is the on-line Freddie Mac Single-Family Seller/Servicer Guide drill down through Servicing Nonperforming Mortgages for the guidelines on HAMP (see also Workout Options).

Here are the Freddie Mac training materials on Loss Mitigation

Related Wells Fargo Loan Modification Questions & Answers:




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Screwed Over By Wells Fargo And Want To Do Something About It! Too Late?

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Rating
starstarstarstarstar 		Reporting wrong info to Credit Bureaus re a Modified Loan NEW
by: finicky but frugal

About ten month(s) ago Wells Fargo Home Mortgage did a loan modification (Permanent Principal Reduction)to my Home Mortgage.
The prior loan was a "Negative Amortized" loan with 7.50 interest. But I was never late in paying my monthly mortgage amount.
Now, since I started to pay new Bank instructed lower monthly payment (with new interest rate, term and reduced principal), the W F bank started reporting every month to all three credit bureau(s) that I wasam late in my payment and also I wasam paying less than the required amount both of these information are utterly untrue. I never paid late and always paying the exact amount directed by W F Bank (sometimes may be more).
These false reporting of "Late" and "Less than required" payment are ruining (impacting negatively) my credit standing (Score) permanently.
In this situation, I will never be able to refinance this property with historic low interest rate in near future (my current interest rate is 6.50). Or if my income situation improves in near future, I will not be able to buy a new home.
Wells Fargo Bank is doing this (reporting false negative information) intentionally, so that I will not be able to do refinance with them or any other Bank in future.
Rating
starstarstarstarstar 		Ruthless Wells Farg NEW
by: Anonymous

To Whom it May Concern,

Aprox 2 months ago we started the process of trying to modify our home loan on our primary residence. What followed was the typical exhausting task of having to hunt down updates on our own, no return phone calls, and the constant list of items need even though most had already been sent multiple times. At one point the processor did an initial review of the file, decided it was incomplete, and canceled the loan without so much as contacting us to request what it was she felt was missing. After complaining to her manager the file was reviewed and the items in question were in the file.

About 2 weeks after starting that process we applied for a loan modification on our investment property. This was with a different team and much smoother. Within a short period of time and a couple of simple communications from the processor our file was submitted and approved for modification.

We assumed this meant our primary home would be approved as well but we were wrong. We were denied because our current payment was only 18% of our gross income and the new payment would be less then 10% of our gross income and it was determined our current payment was affordable. we were told it was an investor guideline and that Wells Fargo could do nothing about it.

So we contacted Freddie Mac…they informed us that as the servicer of our loan Wells Fargo had complete authority to approve the loan.

We find this confusing and disheartening since the loan that was approved was clearly a much lower % of our gross income then the loan that was denied. So this lead to a new series of questions….what was different.

The modification was approved for the investment property and the LTV on that property is upside down.

The modification on our home was denied and that home has more then $100k equity…..this leads us to believe our investment property was approved because Wells Fargo would lose money on the foreclosure and that our primary was denied because Wells Fargo could make a substantial profit on the foreclosure.

After a few phone calls we spoke to a Wells Fargo loan modification specialist who informed us that it is not uncommon for modifications where the property has 20% or more equity to be denied. This is not within the spirit or intention of the loan modification or home preservation act.

We would like out modification on our primary residence to be reviewed…our home…the place where we raise our family to be reviewed and explained why it was denied while an investment property was approved.

Thank you

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