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Wells Fargo: "they don't talk to us" & "giving us the run around"

Here is an email I received this evening. Unfortunately it is not unusual and I frequently get emails, calls and comments on my blogs from frustrated homeowners seeking HELP from their lenders. Here's one that clearly wants to keep their home. I don't know their situation, but surely if Wells Fargo has had their package since December, Wells Fargo would be able to tell them definitively if they can help or not, right? Well, at least you'd think so.

SO now, intead of saving their home, they want to do a short sale. Unfortunately, they are not in an area I serve, but I will try to help them find someone who can help.

"I am interested in doing a short-sale. I have talked with my lender, but they are giving us the run around. Wells Fargo said they had our file in their Loss Mitigation department since December 1st. Every time I call they say they don't have any information for us. We are going into the fourth month behind on our payment. They said they have started the Pre-foreclosure process. I asked them can we qualify for the Help for homeowners program, or any program that would help us keep our home. They say we are looking at the situation and leave it at that. Every time I call they loss mitigation department they never give me any information. I don't know how to proceed. I always here the saying, "talk to your lender", but they don't talk to us. Do lenders talk to you?"

Anyone at Wells Fargo care to comment?

Posted by Catherine Myers, Walnut Creek, CA Real Estate on 01/28/2009 09:21 PM

Comments (17)

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17 Comments on Wells Fargo: "they don't talk to us" & "giving us the run around"

JAN

Catherine, I've talked to several homeowners in the same situation. It's so sad. From my past experience, the folks on the local level are worthless when it comes to situations such as this. They give you the same 800 number that they give everyone.

Hey, lenders hardly talk to me either even when I've brought them a perfectly acceptable short sale offer! :(

It's very frustrating and until the banks HAVE to play ball, our real estate problems will persist!

Good luck getting a comment from someone at Well's Fargo! This is one of many similar stories. Banks have proven themselves to be unworthy custodians of real estate. Banks are not serving their customers nor the communities where they foreclose, take possession of homes, then let them fall apart. People looking at short sales should contact a local realtor the minute they start falling behind in their payments. The realtor can tell the owners what they need to send to the bank, put the property on the market immediately (with the disclosure that it is a short sale and offers must be approved by the lender), and follow up with the million of phone calls and emails getting the bank to respond will take.

This is just such a train wreck from so many different angles.

And even in the event where lenders do help with loan modifications, 60% of those are defaulting after 8 months.

Jay yup, I unfortunately know that 800 number by heart :) I just don't understand the banks. Its a drain on their bottom line, it is a bad debt on their books, why not do whatever you can to relieve it. Now I won't ask them to pretend to care about the actual people, but even from a business point of view wouldn't it make sense to take swift action? Well ok, I'd really like them to CARE too, but that.. unfortunately has proven so far, too much to ask for.

Ron you're right - even when we have a "solution to their problem" its an exercise in patience and determination. My escrow rep told me today they feel everyday like they're on Mr Toad's Wild Ride, and you know, she's right.

It's so sad. I hate that so many people can't even talk to their bank about their situation and their options. It seems that we are all helpless.

Maria you are so right. People do need to consult with an attorney and a realtor as soon as they know they can't make their payments. They should be as proactive as possible. A short sale takes time and a lot of persistence. They happen though. I'm doing several with Wells Fargo right now. Mostly they work out "ok" but I have one that has fallen thru every crack they have. Its a disaster. Now, they take so long to approve I have two with Wells right now that aren't now appraising for the buyer, so its like going back to the drawing board with Wells. Its a disgusting mess.

Mark, I have read that stat, because without a MEANINGFUL loan mod, most find themselves in the same situation - usually, nothing had changed. And I worry its going to get worse as some can't even qualify for a loan mod due to their job loss or loss of hours or salary. Sad situations abound.

Kelsey, sure would be nice if they could at least be reachable. Would be nice if these homeowners could know in a TIMELY basis if they had any options to keep their home. RIght now, the worst part is the unknown, and the run around, and the non answers and ultimately the non help.

We are hearing the same stories here. But, I did hear of a real estate broker who's bank was willing to work with her; they reduced her interest rate for a short term enabling her to stay in here house. Unfortunately this is not the norm.

JAN

Hey Catherine, that's a bummer. It seems as if agents waste more time dealing with short sales than they are productive with the entire process. How frustrating!

I can offer a solution to your frustration. I work with a team that negotiates short sales for free, we make cash offers to the bank, and we have averaging about 1 closing a day nationwide.

If I can relieve some stress from your real estate life, please let me know.

JAN

Catherine, I've got IndyMac Bank and they finally got around to contacting me but unfortunately, it was too late. The buyers already walked. I sure wish we could get the banks to respond faster so that these buyers that we do get, we could keep.

FEB

JD, negotiate short sales for free? low balls offers? option contracts?

FEB

Maybe Titanium Solutions can help them, or go to the CEO of the company and work your way down.

FEB

It's sad to hear so many stories of how bad these banks are dropping the ball. Until these banks get their act together and all get on the same page this problem will persist. I did read that March 4th FDIC and such would come out with standard loan modification guidelines that all the banks and lenders will have to follow in order to have some sanity in all this. Let's wait and see.

I don't think the lenders will HAVE to follow any guidelines. After all, in some cases they didn't even follow Federal LENDING guidelines.

When it comes to loan modifications, one size does not fit all but ANYTHING is better than the chaos we currently deal with.

Last Friday Flagstar told me it will take them 60 to 90 days to ASSIGN the file, that's just to have the darn file assigned. That is preposterous! Heck, the property could go to auction before they even get the file assigned.

WOW, AR looks all different now! Anyway Wendy, you're right it could go to auction and the sad thing is that they don't care if it forecloses. Somehow people got the idea the banks actually care - they don't...

MAR

Everyone is right about Wells Fargo. They can care less about you. My so called loan modification put me in a worst position then pre modification payments. when I wrote the executive dept. to ask for a more affordable one, their answer for denial was our investor gives one loan mod for the entire life of the loan.

I don't know why they thought they were helping me out by raising my payment 700.00 thus making my mortgage payments 80% of our monthly income. It is very obvious that they don't care about homeowners that struggle.

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