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Wells Fargo Home Loan / poor service and misleading /scam

1 United States Review updated:

Mr. Harry Schaefer, a retired consultant for Wells Fargo with 39 years experience in the mortgage business advised me to contact Wells Fargo about thier 3 step program in an effort to lower my current interest rate. He is currently working for another Mortgage Company. I have a current home mortgage loan with Wells Fargo in excellent standing. I contacted them on 3/20/09 to inquire about lowering my rate. After a 2 hour phone call pre-qualifing me, I was told I was pre-approved for their 3 step program, meaning no cost to me for any of the standard closing costs even the appraisal. My credit score is 802, my loan to value is only 63% and my debt ratio is only 30%. They were to lower my interest rate from 6.25% to 5.125%. After many phone conversations and repeated faxes for additional information and a phone consultation with Mr. Harry Schaefer it was determined that they were not calculating my debt correctley. I own my primary residence in addition to 4 rental houses. Two of the rental houses showed a small negative cash flow in 2007 due to remodeling 2 kitchens in 2007 and the other 2 houses showed a substantial positive cash flow netting a total positive cash flow of over $7, 000 for the 4 houses. Your underwriter is not properly calculating this income by showing the debt on the two mortgages with a negative cash flow instead of bracketing them as they are all four rented with verified leases on all. Futhermore, no major expenses were done in 2008. Also, my payment is being decreased by over $1, 000 monthly for the new finance.
1. Credit Score - 802
2. LTV % less than 65%
3. Debt ratio 30%
4. 2007 Tax returns supplied with 5 k1's completed for 2008 which show ample income alone without spouses income supplied yet as an extension has been applied for 2008 returns.
This is the most incompetent staff I have ever dealt with, I am in the Real Estate business for 25 years. I just called Customer Service to find out the status as no one has had the decency to call me back. I was told by a Linda White that she had no one I could talk to, not a supervisor or anyone and when I questioned why she responded that she was just a temporary agent and that she didn't really care what I did. I am appalled to say the least and if this is not rectified immediately I will post this incompetency on the local news as well as newspaper and what ever other relief I find available. Is this just a scam by Wells Fargo to mislead people to refinance and not approve anyone? If I can't be qualified I'm not sure anyone could be by your Comopany. By the way I have 3 loans with you all in excellent standing obviously with an 802 credit score.
I gave written authorization for my loan processor and her supervisor to contact Mr. Schaefer regarding this loan process and neither one bothered to call either of us and as I am closing this letter I still have not received a phone call back as I put 2 messages in first thing this morning.

Very Disgruntled Customer

Sherri Apakian Offer #[protected]
Harry Schaefer [protected]

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  • Gk
      30th of Apr, 2009
    0 Votes

    I am currently doing the same 3-step refi by wells fargo. I sent everything in and I am waiting for their Underwriters to get back with me.
    I hope I do not get the run around...


  • Gk
      4th of May, 2009
    0 Votes

    Well, I just learned they denied my app as well. Due to temp work and obligations. Why is there a program like that at Wells Fargo? Isn't it to reduce the likelihood of missing payments? If I can afford to pay the current payment, how could I miss or not make $300 LESS payment?
    I tried to talk to their underwriting, they said I cannot. I am calling back the loan officer who took my app...

  • Ve
      6th of May, 2009
    0 Votes

    I was told all that WF needed to close on my loan was for WF to be furnished with my HOA's insurance binder and if I could do that within that day my loan would close on that day itself. (This request came 3 weeks after the appraisal of my home.) I immediately requested for a copy to be sent to WF.

    A week later (end-April 2009) I received a call from my loan processor telling me that the underwriters are now requiring additional documentation (such as W2, paystub, etc) because these are new conditions imposed on all loans closing in May 2009. We could have closed early April 2009 had WF not dragged its feet on the application. So what happened to the minimal hassle 3-step re-financing process? I do not have a problem with furnishing additional documents, but I resent the fact I started the loan application process in March 2009 and furnished all requested documentation on WF from the outset. I had even offerred to furnish them my pay stubs and W2, but was told that that was not necessary.

    I am just stupified by the actions of this bloody bank. My husband and I even have our savings account with WF. I asked to speak to the underwriters, but was told that she did not know who they were. I wrote an email to my loan processor and she told me that she forwarded the email to her supervisor whom she said was going to give me a courtesy call. It has been over 2 weeks already and I have received no call to date.

    We are pulling our funds out of WF and will be banking with another bank. We are also looking to refinance the mortgage with another lender. Honestly, we would rather pay the originating fees and closing costs than continue to pay ingrates.

  • Ti
      3rd of Jun, 2009
    0 Votes

    I have had nothing but problems with Wells Fargo since the beginning of escrow. It is now week 7 since the owner's of the property accepted our offer and WElls Fargo initially told us that we needed to only put 20% down then 6 weeks into the process they did a bait and switch and changed it to 30%. Of course this gave us no time to get another bank involved. We came up with the 30% and now, 2 days before the end of escrow, they tell me that they forgot to lock in my rate. We were initially given a 5.25% rate which changed to 5.125%. We were told that we would be locked in at 5.125%. They would not tell us what rate they are giving us today but the current listed APR is at 5.5%. What a bunch of scammers and incompetent employees they have. The whole process has disgusted us. Who do I go to issue a formal complaint? Aren't there rules and regulations in that industry?

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