Sunday, March 25, 2012

My HARP 2.0 Application was Rejected by Wells Fargo

Let me start with some background about my situation.

I have never missed a payment or been late on a payment.
My home is owned by Fannie Mae.
I originally put a 20% down payment on my Home.
I have had the same Job since 2008.
I have a 770 median credit score.
Wells Fargo services my current mortgage.

My application for Harp 2.0 was rejected by Wells Fargo because I am too "High Risk" due to how underwater my home is. LTV is too high!

The whole purpose of Harp 2.0 was to finance people who did the right thing but were underwater for no fault of their own. Wells Fargo is criminal. They are ignoring the government guidelines and refusing to refinance Harp 2.0 loans with a LTV more then 115%. That is not even as good as Harp 1.0. (which they would only refinance up to 105%).

Even if I would have have been refinanced I would have had to pay a 5% interest rate when rates were hovering in the low 4% range due to how underwater my home was (about 170%)

This whole thing is criminal, and ridiculous. They do not want to refinance me because they are making money off me already and do not want to lower their profits.

Why even claim to participate in the program if you really are not following any of the guidelines?


Anonymous said...

Same thing that happened to me with same credit, job history etc. I even went through with trying to refinance with original Harp and my LTV acording to my Comps were good but Wells Appraised my home $50,000 lower and took my $500 for appraisal. Told me to Wait for Harp 2.0 and now won't refinance or refund Appraisal fee though e-mail state they will. I have to refinance to get my ex-husband name off and time is running out. They are going to end up with a house that is worthless because i have to refi our sell.

Chris said...

Anonymous its criminal what they are doing.

Do you know of any outside lenders that can do Harp 2.0? or are we still stuck with Wells Fargo?

Anonymous said...

I also got rejected by Wells Fargo for a HARP refinance. I have good credit, never missed a mortgage payment, have had the same job since 2006. I have a condo that I bought in December 2006. I am paying 6.375 interest rate. I put 20% down (40K) when I bought my condo. My servicer is Wells Fargo and my mortgage is owned by Fannie Mae. My LTV WAS 80, but I lost 30K equity in my condo when the economy tanked. Now my LTV is over 91 and I was still rejected for a HARP refinance.
My condo complex was built between 2006-2008. When the economy tanked, the builder was left holding 7 units he could not sell. In 2009, the builder sold all 7 units to one investor who now rents those units out.
Wells Fargo rejected me because of that one investor who owns more than 10% of the units in my complex.
Because of that, I was rejected. Rejected over something I have absolutely no control over and that has nothing to do with me or how I pay my bills. Wells Fargo blamed it on Fannie Mae and said it was Fannie Mae's rules...not Wells Fargo's.
It was the worst four months of my life trying to deal with Wells Fargo, only to get rejected 11 days before Christmas.
I am unable to do a conventional refinance because my LTV is too high (through no fault of my own I might add). I am unable to do a HARP refinance because some stranger owns 7 units in my complex. I am completely stuck paying 6.375 interest. All of my utilities have increased since 2008, the cost of food has gone up since 2008, my property taxes have gone up, sales tax in my state has gone up, my common fee at my complex has increased,gas prices are through the roof, the cost of fuel oil has increased, and my company rolled my salary back 4% in 2008. My company also took away all of my bonuses in 2008 and never reinstated them. I did not buy more house than I could afford. I had a prime mortgage. I am a responsible person who pays my bills. Yet, I cannot even get the help I need right now. I am not even asking for a principal reduction or anything like that. I just want to refinance to the lower 4% interest rate and I can't even do that. That's my story. Thanks for reading.

Anonymous said...

Just because Wells was your servicer does not mean another lender follows the same guidelines concerning the same person now owning the 7 should shop around as my company could do this loan if the information as stated is correct

Anonymous said...

I too was rejected by Wells Fargo, though i have great credit and have never paid my bills late.

The Wells Fargo in Daytona Beach are not concern about their customers. I have been banking with Wells Fargo for 8 years, you would think they take care of their own!!! I was rejected because I don't have $50,000 in the bank...But who does?

Anonymous said...

I am in the same situation and my LTV is not an issue with the first and 109 if you include the home equity loan - still way below that of the government guidelines.

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