Wells Fargo Financial / signed us up for a mortgage, now pulling out and says they will not renew
Just received a letter from Wells Fargo Financial Corporation of Canada, Missisauga office
Subject "Wells Fargo Financial Corporation Canda discontinues residential real estate lending
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].
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.
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