i have new tree house, but not in a good way

Posted: Wed Apr 27, 2011 03:26 am Post Subject:

I think you are on unfirm ground on this one. If the garage was on the property when you bought it, in working order or not, it probably comprises some part of the "security" that the lender took to issue the mortgage, ready to fall down or not. The fact that you repaired with your own money not the lender's is probably immaterial at this point.

Who told you that the insurance money will be doled out in three increments? This is highly unusual. Unless the loss was a "total", the lender has no interest in the check, they simply need to sign it and forward it to you. Likewise, the insurance company is only permitted to withhold the excess over ACV until repairs are completed (at the latest). So from them you should not get more than two payments under most circumstances. (There could be language in your contract that contradicts this.)

Posted: Wed Apr 27, 2011 02:17 pm Post Subject: more info

The lender is Wells Fargo Home Mortgage. They will forward us 1/3 after several business days of red tape once they get the check. I have to schedule their adjustor 2 weeks before the contractor is 50% done to arrive when he is 50% done, then they will start the process of giving me the next third of the check. When I schedule their inspector and he confirms the garage is repaired, they will give me the rest - which would include the 1/3 balance of the original Allstate ACV check plus any other checks Allstate issues me to recover depreciation (they don't care how much it costs, but we must prove beyond a resonable shadow of a doubt the garage was fixed before they will release money rightfully ours).

What's interesting is they call themselves the mortgage servicer, not the lien holder - they seem to recognize with the collapse of securitized mortgages, no one probably even knows who own the lien - they broke every mortgage down into so many pieces and sold them off so many times, they aren't even claiming to own the house, just claiming to perform feduciary duty on behalf of whoever does. Makes me mad.

Posted: Wed Apr 27, 2011 07:58 pm Post Subject:

Well, well, WELLS! They hide behind their Federal Regulator, the Comptroller of the Currency, to get out from under every state's banking and insurance regulations, knowing that the federal regulator performs almost no regulation. It's been upheld more than once in federal court, and it's obscene. Rat bas****s.

Sorry to hear that. You can try complaining to the Dept of Insurance, but it probably won't help.

Posted: Tue May 03, 2011 04:59 pm Post Subject:

Posted: Tue May 03, 2011 05:01 pm Post Subject: hows this

How is this for the start of my crusade against this unfair practice? I know people here defend this practice but they have never been in my shoes. It just places too much of a burden on someone in their time of need and seems cruel and unnecessary. Just because it's industry practice does not mean the industry can't be wrong - just ask the millions affected by the financial crisis. This is what I have come up with:

Wells Fargo and the mortgage industry as a whole have gone too far in attempts to avoid negative outcomes. The illegal and irresponsible behavior of the minority of customers has catalyzed WF into creating a burdensome process that bestows unnecessary hardship on ALL of it’s customers.
Considering Wells Fargo follows 'KNOW YOUR CUSTOMER' - SECTION 326 OF THE USA PATRIOT ACT, this should not be necessary. The Federal Reserve states:
- One of the most important, if not the most important, means by which financial institutions can hope to avoid criminal exposure to the institution by ‘‘customers’’ who use the resources of the institution for illicit purposes is to have a clear and concise understanding of the customers’ practices. The adoption of 'know your customer' guidelines or procedures by financial institutions has proven extremely effective in detecting suspicious activity by 'customers' of the institution in a timely manner.

LOAN TRANSACTIONS
It is important to realize that relationships with a financial institution that take a form other than deposit accounts can be used for illicit purposes. Loan transactions have become a common vehicle for criminal enterprises that wish to take advantage of the proceeds of their illegal activities. Therefore, prudent financial institutions should apply their 'know your customer' policy to customers.

For example, if Wells Fargo knows me as a customer, they would know:
- I have $130,000+ equity in my home
- I have a job
- I pay ALL my bills on time, including the mortgage
- I contribute extra money to the principal on my mortgage each year
- I have a nest egg larger than the insurance check.

The conclusion you can draw from the above knowledge is that:
- I am not going to abscond with a $50K insurance check and stop paying my mortgage.
- This would not be considered enough of a windfall to start engaging in fraudulent and illegal activities.

I don't need to be treated like a small child and given an allowance by my mortgage company. What do they want to know next, how many squares of toilet paper everyone in the house uses?

Posted: Tue May 03, 2011 10:03 pm Post Subject:

No argument from me. The banks have nothing but greed on their minds these days. Their vaults have been filled with TARP proceeds -- ostensibly to use for loans -- and that's where it sits, not stimulating anything but their own bottom lines.

The USA PATRIOT Act has caused all of us in the financial services field to change our ways -- today I have to ask to see a person's driver license to make sure they are not a money launderer. As if it's printed on their license.

They have no business doling out your insurance check as you describe, nor do they really have the authority to tell you how to proceed in the repair of your property. Your building code probably does not require a garage, but simply "covered, off-street parking." So a carport would suffice (as might a tent).

The problem is, simply, the fact that there is probably no one -- as a regulator of Wells Fargo Bank -- who will listen to your complaint and assist you in any manner. The best you could hope for is an attorney willing to take on a class action against them and possibly get you some punitive damages. But that's a long row to hoe.

Posted: Thu Jun 02, 2011 06:15 pm Post Subject: gSLgChQcVMpUvw

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