I am PO'd beyond belief!!!!

[krielly]

I cannot believe what just happened.

We applied for pre-approval for a purchase of a home last week. we have folks interested in buying our home, and they are going thru the same process.

We filed our 13 back in 10/2005. We are $700 away from paying it off in full, and the trustee's office said they will expedite discharge upon receipt of the final payment to them. (we could get discharge within a week).

So, our current mortgage is with Wells Fargo. We are well within FHA guidelines.. credit scores are 656 and 667 per WF. We were told it had to go to underwriting because of the 13. The rep told us everything looked good as of last week.

So....I get a call from him today saying they are declining it, due to the fact that our current mortgage was IIB. I said "don't they understand that we did not go into foreclosure, and were never never late on a payment?? (Haven't been late on anything since either. We've gotten 2 vehicle loans (approved) during our 13, and have paid everything on time.

There "reason" is because we filed and included them. I had no choice!!! I've been paying them on time every month!!!!!!!!!!

I am beyond PO'd!!!!! I said "doesn't Wells Fargo realize they have a current FHA mortgage which is IIB, which they would be getting rid of, and replacing with a FHA mortgage we are putting 20% down on, and our debt to income ratio is WELL below the recommended???????

ARGHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!

[justbroke]

I would get a letter from Wells indicating that the mortgage has been paid on time and although IIB, it is not foreclosed. Then ask to have the resubmitted to underwriting. You're so close, I wouldn't take their simple "IIB" for an answer.

Also, how many lenders did you shop?

[krielly]

I would get a letter from Wells indicating that the mortgage has been paid on time and although IIB, it is not foreclosed. Then ask to have the resubmitted to underwriting. You're so close, I wouldn't take their simple "IIB" for an answer.

Also, how many lenders did you shop?

I wouldn't think they would need a letter. They know this information... it's their bank!!!!!! UGH!!! The guy I talked to said it was going to "2nd level" underwriting, but he was sure it would be declined.

I'm meeting with another person in the next day or two...

Even if the deal falls thru with the purchase of another house, I'm planning on pursuing re-financing my mortgage, cause after this I don't want to give WF one more penny of interest for the next 15+ years than I have to.......

K

[justbroke]

Sometimes they need the letter for the "file". I share your sentiment with how WF is treating you.

[tigergem]

Yeah, I think, regardless of whether it is the same bank, I would request a "letter of credit". This could be a handy thing to have regardless of your circumstance. Keep a copy of it for yourself!

[krielly]

This is what the loan officer said about that:

"It has already been noted in our system so they will see that."

"they" meaning the 2nd level underwriters...........

[justbroke]

When it comes to underwriting, a "note" is different from actual documentation. Many loans are still sold on the secondary market. The loan will probably get sold to one of the GSEs (Freddie or Fannie). That's why underwriting has to be perfect.

I would still pursue obtaining the letter and then submit it if you get grief from the 2nd underwriting team.

[krielly]

wouldn't you think WF would rather have an IIB mortgage paid off??? And then have us in a new mortgage which is NOT discharged, with 20% down?? It boggles the mind......

especially with on time payments to them for 7 years...............

[Logan]

wouldn't you think WF would rather have an IIB mortgage paid off??? And then have us in a new mortgage which is NOT discharged, with 20% down?? It boggles the mind......

especially with on time payments to them for 7 years...............

I don't see the big deal. Wells Fargo doesn't want you so go to a different lender.

It's like going to a bar. I walk in and go talk to a girl. If she doesn't like me I go find one that does.

Logan

[justbroke]

It's like going to a bar. I walk in and go talk to a girl. If she doesn't like me I go find one that does.

Yeah, but we're talking about wanting to leave the dance with the same gal you came in with! Starting out alone, is different.

LOL

[Logan]

This is a lesson NOT to use a bank for a mortgage since a broker can shop many lenders and then this problem would be avoided.

Logan

[krielly]

Going to a broker later today......

[mom2three09]

This is a lesson NOT to use a bank for a mortgage since a broker can shop many lenders and then this problem would be avoided.

Logan

I agree! If WF doesn't want your business then forget them and move on -- I'm sure there are others who will gladly take on a customer who has 7 years of perfect payment history on their current mortg! GL and keep us posted

[krielly]

Update

So........this morning I get the following email from the WF LO:


"Good news! The 2nd level underwriter is willing to take another look at the loan. We need you to send in the following items...."

Since my original post, the folks who wanted to buy our home can't get the financing....So if this works, we are left with some options:

1. List the house with a realtor, and hope to sell it in order to purchase the other house.

2. Do a cashout refinance - we could take about 30K out to do some renovations on our home. Re-fi from a current FHA fixed rate of 6% on a 30 yr mortgage we took out in 2004. We would re-fi to at 15 year FHA fixed at anywhere between 4.5 and 5 %

I started the pre-approval process with another mortgage broker last Friday. The way I see it, whoever gives us the best rate and terms wins!!!!

The saga continues.................

K

[gophermn]

Good luck - the brokers are hungry so they will work hard to get you something. Banks, hell what do they care - they get bailed out so why sweat it.

Keep us up-to-date!