Wells Fargo Home Equity Refuse to accept $5,000 to release 2nd lien in short-sale; would spitefully rather have $0.00 Des Moines Iowa

Wells Fargo saw the light and took the $5,000 instead of Zero. Wells Fargo incurred a $123,999.61 circumstantial "short-fall."

My hats are off to Wells Fargo in that they did accept the only option they had in this case, even if it was reluctantly. Tough measures are required in a tough real estate market!

Wells Fargo saw the light and took the $5,000 instead of Zero. Wells Fargo incurred a $123,999.61 circumstantial "short-fall."

My hats are off to Wells Fargo in that they did accept the only option they had in this case, even if it was reluctantly. Tough measures are required in a tough real estate market!

Wells Fargo saw the light and took the $5,000 instead of Zero. Wells Fargo incurred a $123,999.61 circumstantial "short-fall."

My hats are off to Wells Fargo in that they did accept the only option they had in this case, even if it was reluctantly. Tough measures are required in a tough real estate market!

Wells Fargo saw the light and took the $5,000 instead of Zero. Wells Fargo incurred a $123,999.61 circumstantial "short-fall."

My hats are off to Wells Fargo in that they did accept the only option they had in this case, even if it was reluctantly. Tough measures are required in a tough real estate market!

You want them to loose $126,000. Your clients wants to just walk away without paying the bill. You say it is a win win situation, it seems to be the only person winning in this situtaion is your client. Why don't you come back to them with a real offer, like half the outstanding balance of hte loan. You want the bank to eat 96% of this loan. Lets say you work for a company, you provide labor yet the company only payes your 3% of your wage. I am sure you will not tolerate that. Your client a house that they should not have now they want somebody to bail them out. The bank will sue your client for the loan, and they will win the law suite becasue your client owes the money.

Melonic,

Good Luck. Well Fargo claims to be a AAA lender. I had a banker tell me less than two weeks ago that they pride themselves in not getting into the sub prime market. I am only amused by the fact that I see they are in the losing end of it. I apologize but I have no sympathy for the FARGO.

Try to understand this logic:


The mortgage industry saw opportunity during this latest housing boom. Mortgage Brokers are at the highest fault level in this crisis. It is easy to blame the individuals because they have very little voice in fighting what we hear by the industry, politicians and the media. It seems by the media that people got into loans they couldn't afford. I say they did this unwittingly. Brokers on the other hand knew what they were doing as well as the banks.

The majority of sub prime loans were done through brokers and their respective representatives. They were so hungry many of these companies would go to any length to sell a loan. I personally witnessed mortgage booths in several home and garden shows and state fairs.......Some brokers (I know of one personally who by the way convicted felon selling loans, sold me a 13.87% interest only loan) Many of these brokers specialized in B paper or sub prime loans. They brokered deals with A paper or prime lenders for phone numbers of those who were turned down by the A paper lender. After Joe B Paper was turned down by the A lender and email would be sent to the B paper broker. They used funding companies like Secured Funding to secure a loan.

The shell game I like to call it went like this. The A paper lender turns Joe B Paper down. The B paper broker uses a funding company to get a loan. Promises on the onset a rate that is fair (for example: 5.75% fixed 30 year). An offer is set on the table for the house, and Earnest money is given to the Realtor to add security to the transaction. Now while the house is in escrow Joe B receives a call from the broker that the underwriters need some information that you provide and a few days later get another phone call from the broker that they can not get you the 5.75% fixed, however they can get you an interest only ARM or a 3yr fixed ARM at 5.25% for three years. Naturally you ask quesiton like what will the rate adjust to after three years. The Brokers response is then to say "Prime plus a few pionts, but when your rate adjusts you can refinance and get a fixed rate".

Now, you think about it, run the numbers and agree.....What the Broker didn't tell you is that there is a good chance that based on market history, by the time your mortgage adjusts the banks are not going to refinance cause the market is leveling off and even if you can by the time you pay your pre payment penalty you will then have a Loan to Value that is too high and therefore not eligible for a loan.

Now you are at the signing table at some Title company like First American Title, that took 67 days to perform a 30 day escrow, blamed it on the broker who then blamed in on the title company. You now have now made arrangements with the impatient seller to increase the earnest money, you make all arangements to move again after cancelling once and losing money only to find out the your loan papers do not contain the same number you were told by your broker (5.25% ARM). you see the rate is (6.25% ARM adjustible by prime plus ALOT more than Mr. Broker told you) At the signing table you are now given a choice: Back out of the loan and lose $10,000 or maybe $50,000 dollars, OR sign the loan trusting your broker to refinance at a better rate after three years. Most people in this situation did the latter.

Now Stage Three of the shell game. You find out within a month that your loan was sold. Guess what, there is a good chance that Mr. A Paper lender just bought your loan as part of a package of loans. You now are writing a check monthly to someone that 4 months earlier told you that you that they could do anything for you.

NOW The final stage of this Shell Game.....Your loan adjusts, you try to refinance and your lender says. Sorry but your Loan to Value is such that we can not refinance you.....You start the vicious cycle to getting behind, trying to catch up only to fall further behind. Now you go to a B Paper lender and learn that there is nothing they can do becasue you house is worth less than you owe on it and unless you can come up with oh say $118K there is nothing they can do for you. Your credit score is now spiraling down hill, Using credit card to help pay a mortgage on to realize the futility in this thinking. The economy slows and you lose your job due to lay off, outsourcing, insourcing or have your hours or salary cut in half...There is a word for this and I can not say it in this forum..

Want to feel even better now? While your phone is ringing all day long, every ten minutes with credtors calling you and making threats. You sit down and do the math....The Media reports COUNTRYWIDE has a 20% sub prime forclosure rate, the overall rate with all lenders is probably around 14%. The media reports that 45% to 60% of the loans in are ARM loans. so now you do the math.....Let's say to make math easy 200 people get a loan, 50% prime and 50% sub prime. Let's say that each loan is for $200 to $300K, and with a normal distribution of borrowers within these limits..Mr. A PAPER borrower is going to pay between $1150 to $1700 per month at a rate of 5.5% less taxes and insurance. This is fixed....Mr. B PAPER now has a ARM rate starting at 6.25% ARM that adjusts to some prime plus whatever rate, he is going to pay between $1250 to $1850 per month to have their rate change in three years to $1500 to $2300 dollars per month...Now going back to the 15% number in the forclosure market we can summize that nearly 100% of the prime market can afford their discounted loan as well as 85% of the sub prime market. Although most of the sub prime people struggle cause their loan jumped by $400 to $1000 dollars per month. 15% can not afford this increase especially in the case of unemployment caused by a slowing economy, casued by a housing market crash.

Now the banks here are looking at 50% of the loans are no risk, 50% of the loans have 15 percent default rate where 85% of those people make up more than four times the payment default rate and the banks get to take the house and sell it for anywhere from 100% LTV to 65%LTV...Any way you calculate it properly, the Banks are cleaning up on this so called market crash

And to add insult to injury...OUR TAX DOLLARS are going to bail out these banks and not the people that were suckered into these loans.....I know I have a second mortgage at 13.87% interest only that was supposed to be a 7.5% fixed in the beginning...This SHELL GAME was played on the vast majority of the sub prime borrowers and the only ones being blamed are sub prime borrowers and the only one hurt are sub prime borrowers.....

Most people can not understand the legal wrangling in the hundreds of pages required during the purchase of a home. The title companies sneer at you when you start to read the pages then you finally give up reading the foreign language called law. A language that requires a Juris Doctorate to understand and yet most people can not afford and attourney to buy a house...

Final note sir. Do you really think that Wells Fargo cares one bit about $5000 dollars, knowing they will place this amount in the bailout and do a special write off to cover their losses they are getting reimbursed on during the bailout. Then come after the borrower for the full sum knowing they have already been compensated twice on the loss, in the same attempt to get a more compensation from the borrower all the while destroying all the borrowers financial credibility for the next 10+ years....I don't think Well Fargo cares one bit...I wonder how many 35 dollar overdraft fees the borrower paid trying to save their dream home.


Regards, Steven