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Wells Fargo Financial / signed us up for a mortgage, now pulling out and says they will not renew

1 Coquitlam, British Columbia, Canada Review updated:

Just received a letter from Wells Fargo Financial Corporation of Canada, Missisauga office

Subject "Wells Fargo Financial Corporation Canda discontinues residential real estate lending

Dear nnnn,

You are a valued Customer of Wells Fargo Financial customer and we thank you for your business.

Please note that effective July 30th, 2009, Wells Fargo Financial Canada exited the residential real estate loan market. therefore, we no longer accept applications for residential real estate loans, We will, however, continue servicing your real estate loan.

These are the only changes occurring at this date on your loan. The other temrs and conditions remain intact; your interest rate will remain the same and you are still required to make monthly payments as indicated in your loan documents.

Please take a moment to determine the maturity date of your loan. You will need to make arrangements with other than through Wells Fargo Financial in the event your loan reaches maturity with us.

Again, thank you for your business. If you have questions, please contact us at [protected].

Sincerely,

Corporate Customer Relations
Wells Fargo Financial Corporation Canada

====================
To make a long story short, in in 9 months I will be forced to look for someone to refinance my $620k mortgage that is costing me $4200 a month to pay off, and with the market as it is the assessed value is about that amount. Go figure what are my changes.

To add injury to insult, if I try to sell now and pay off the loan from the proceeds of the sale before the loan matures, I have to pay a $24k prepayment penalty.

From the get go I asked the branch manager for assurances that, as long as there is no default situation, the mortgage will be renewed, there will not be a problem. When all the sub-prime crisis started I called the local branch manager again to confirm the renewal promise...again no problem.

Now that manager is no longer with the company, and I get the above letter. I THINK ANY REASONABLE PERSON WOULD AGREE I AM BEING SCREWED BY WELLS FARGO.

MY ADVICE...AVOID THEM LIKE THE PLAGUE.

DUE TO THOSE ###, I MAY HAVE TO SELL MY HOME, POSSIBLY AT A BIG LOSS IF I CANNOT GET ANOTHER MORTGAGE, AND WORK IN REAL ESTATE FEES AND BASICALLY MY LIFE SAVINGS GO DOWN THE TUBE.

I HAD AN INTUITION I WAS MAKING A DEAL WITH THE DEVIL WHEN I TOOK OUT A HOME OWNER EQUITY LOAN WITH THEM, BUT THEY GAVE SUCH A GOOD STORY THAT IT WOULD ALL WORK OUT. IT COULD HAVE, EXCEPT FOR THIS LATEST DECISION BY WELLS FARGO NOT TO RENEW EXISTING MORTGAGES.

I have seen articles quoting WF Canada that they will continue servicing existing loans...but what was not mentioned is that they would not renew those upon maturity.

SHAME!

Le
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Comments

  • Wf
      24th of Sep, 2009
    -1 Votes

    Managers were not aware a decision to cancel mortgages was coming. Wells Fargo will do everything possible to help people refinance there homes. In many cases Wells Fargo will be taking a loss to help people out. Wait till maturity, see a mortgage broker, if that doesnt work Wells Fargo will most likely do a short term re-finance till your credit situation improves. Wells Fargo is not responsible for the declining real estate market.
    -An employee for WFF

  • Co
      24th of Oct, 2009
    0 Votes

    I have taken steps t0 launch a Class action lawsuit against Wells Fargo, We are in the same boat as you, thier early payout penalties can and should be waived if they inform you to seek other lenders on your maturity date, basically they are instructing you to payout your loan when you are not in default.

    The usual payout penalty is more than half of what they ask, but they want you gone, this was all just a cash grab, take your interest for however long was your term was and goodbye

    if you want to join in e-mail me for details

    Cody32007@hotmail.com

    Together we can make a change and save innocent peoples properties and assests

    Wells Fargo should be avoided at all costs

  • Wf
      15th of Mar, 2010
    0 Votes

    There are no penalties if you payout your mortgage at maturity. Not sure what a lawsuit would be based on??? And WFF will renew your mortgage if you can't get financing elsewhere... Hopefully for the period you had the mortgage you got your credit back into shape and can re-finance at a bank for a much better rate.

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