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wells fargo financial and bankruptcy

Discussion in 'Wells Fargo Home Mortgage' started by livingsimple, May 20, 2011.

  1. livingsimple

    livingsimple LoanSafe Member

    We foolishly refinanced through wells fargo financial in 2008. We have since filed bankruptcy and reaffirmed our loan. We continued paying on our mortgage throughout the bankruptcy and thereafter. We got our statement 3 months later saying we were "paid" up for the next three months. I called and talked to a "real estate representative" and was told since we had a fixed rate we would not be charged any fees or interest. Well, this was around Christmas, so I didn't think too much about it and made payments 2 months later. We then got a "statement" stating that we owe 1500.00 in interest. They tried to explain the reason they charged the interest, but, sorry I really thought that a fixed rate loan was a fixed rate loan and if you paid ahead, you were ahead. So now I am trying to play catch up on the interest charged so they will start taking off the principal each month. We are stuck for another year at least before we can even start thinking about refinancing. But my main question is.. If wells fargo financial closed down, who actually owns our mortgage? We talk to a different person every time we call. We were told that we can not go to the "wells fargo branch" to make a payment. Does anyone have an answer? Thanks
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi livingsimple,


    Welcome to the forum and thank you for joining.............

    The interest you pay on the mortgage is paid in arrears meaning for the month before so if you paid three months ahead you would still be one month behind on the interest. Why are they telling you that you are unable to make the payment at the branch?
  3. SurfwhenUcan

    SurfwhenUcan LoanSafe Member

    livingsimple, that's quite the confusing post, but Welcome to the forum!

    I'm not sure who explained that loan to you but they didn't do a very good job. I"m confused by the statement that you "wouldn't be charged any fees or interest" - such a thing doesn't exist (at least at WFF). Having a fixed rate means nothing more than your rate is fixed. It has nothing to do with whether or not you're charged fees and interest.

    If you have a standard fixed rate mortgage, your payment will automatically include some interest and some principal each month, weighted more for interest on the front end. This is called amortization. Some fixed rates are Interest Only but I assume if this was the case you would have mentioned it.

    I'm hoping that by saying you are paying ahead, you don't mean paying ahead to avoid being charged interest.

    No, you cannot go to the Wells Fargo branch to make a payment on a Wells Fargo Financial loan - you are talking about two different (very different) banks.

    WFF is not going to close down, but if they did they would simply be bought out by someone else (or given a free lunch and ticket to the races by the current administration). You loan is just being serviced by them. An investor owns your Note.
  4. Cat Damiano

    Cat Damiano Mortgage Wars

    Surf, Ahhh, good catch, I did not even see that.
  5. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    In my opinion one of the worst mistakes is to reaffirm a home loan. The mortgage company still will consider you in bankruptcy and add any charges it can, to abuse you and then foreclose on you. Katheran Porter of the Ohio College of Law wrote a paper on this and Wells Fargo was the main culprit.
  6. SurfwhenUcan

    SurfwhenUcan LoanSafe Member

    "Financial" always stands out like a neon sign to me because I absolutely hate dealing with WFF lol

    I'm still trying to figure out what livingsimple was trying to convey.
  7. livingsimple

    livingsimple LoanSafe Member

    Sorry to be so confusing...

    I am so confused dealing with WFF. That is why I came here, hoping to get some insight on how to deal with them.

    After the bankruptcy, we continued to make our payments. We never got a statement during this time. We called the "bankruptcy department" within WFF and made the payments by phone. Our lawyer said they would not send statements while in bankruptcy, so we continued to make payments.

    She also told us we needed to reaffirm our mortgage, so we did. We did not want to lose our home. But it seemed that all of our payments were reducing our mortgage quite a bit during the next months that we were in "bankruptcy" within WFF. Meaning, anytime we called to inquire about our loan, we were referred to the bankruptcy department.

    When we finally got a statement, it said that we were paid ahead, and I called and talked to someone in the "mortgage dept." and she said because we had a fixed loan, we were paid ahead nothing would be added to our loan.

    The strange thing is, that when we got our first statement after bankruptcy, our balance was at least 1500 dollars more than what they were telling us we owe over the phone.

    So, I am quite confused. This is the first mortgage company that I have dealt with that has pretty much charged you what they want to and it bothers me that you really don't know what you owe and who you are really talking to when you call. Calling them seems to be the only way to get any information.

    All of the Wells Fargo Financial offices in my area have closed down. That is why I asked the question, who actually owns my mortgage? Will they send me verification that they own my loan if I ask? How do I do that?

    Thanks for listening and for all your answers
  8. livingsimple

    livingsimple LoanSafe Member

    Thank you for the reply. I was wasn't sure if we should reaffirm the loan, but our lawyer told us we should. We thought that was the only way we could save our home.

    I will look into the paper you spoke about. I just hope that when we are able to refinance, that WFF will not give us any problems.

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