Watch Out if you have Wells Fargo HELOC

[catleg]

[StartingOver08]

Wells seems to be having a great deal of problems. They are absolutely one of the worst when it comes to loss mitigation negotiations - they want the property to foreclose.

I had one of my rental properties with Wells Fargo (actually a subsiderary - which is ASC) the LTV was less than 75% at the time of issuance. Last year when I was 45 days late the collections dept calmly informed me they would take no more payments - they were coming after everything I owned. Naturally this just made the BK decision easier - but at the time I could not understand why they would not allow me to catch up on the mortgage (they said "pay all or none"). No work out program, nothing.

Well, they got the house. Now it is upside down - I surrendered.

Turns out the only way Wells will get out of the mess they are in is if a bunch of people default and they collect MI on everyone and then sell the asset. The MI is anywhere from 19% to 35% of the original loan plus they get the asset (property). If they sell the property they get out with very little actual loss - really none if you count the TARP funds!

Sounds like they are pushing all their HELOC loans to perform or bust out NOW - rather than a little at a time.

[deadbroke99]

Oh Great. My rental that an investor is supposedly buying is thru Wells Fargo with a Wells Fargo HELOC. Good thing I am going to surrender in the bankruptcy.

[albacore44]

I bought my new home in 2003. The builder was using Wells fargo, and made it very difficult to buy since they had a waiting list for houses unless you agreed to buy using Wells as your lender. well with each phase they raised the base price by about $100k untill the last homes built were sold at close to $1M . now the base started at $400K in 2003. that hugh price increase occured in a 3 year span, and Wells under wrote the whole thing. My last appraisal was $890k in May 2007. I received a Zillow report in my e-mail yesterday showing my house worth $480K. I paid $500k for it brand new before landscaping etc. and it's still going down. think I'm pissed.........you bet.

Wells is losing their Azz around here. many of those who bought are giving the homes back and walking. Wells has a brokerage who takes their forclosures, puts them with a local realtor, who resells them. Last week the house 2 doors down that was a forclosure finally sold, $525K...........original loan balance $900K. so all that $$ was written off. and there are many more like it.

think the banks are in trouble ?? we haven't seen anything yet.