SmartFit Loan from Wells Fargo Bad Loans?

One Response to SmartFit Loan from Wells Fargo Bad Loans?

1. daeve930 says:

   August 31, 2010 at 11:53 am

   Cathy

   Well, I just have a couple comments.

   1. Look up Project Hope on the internet. I have the number at work, and I’ll try to remember to come back and add it, but I’m getting old and forgetful. They may be able to help you if you’re at least 3 months in arrears.

   2. Sad news here…except for reverse mortgages, and maybe a mortgage your mother makes for you, ALL mortgages are recourse loans. When I lend you $XXX,XXX I expect you to pay me that much money. If you sell your house for less than that, you still owe me the difference. I expect you to do whatever it takes to get that money for me. Every loan except reverse mortgage works that way.

   3. The 20% loan. Your loan docs, the ones you signed, say if it’s payable in 3 years. You should have read them before you signed them.

   Young and inexperienced maybe, but you could have asked someone for help. Smartfit is a Wells Fargo product, so I don’t know anything about it. I can’t see how both loans could be considered home equity loans. One should have been a purchase money 1st and the other a purchase money 2nd. I guess WF could do something funky but it’s not the standard process. The 2nd is usually regarded as a cash out loan, but not home equity. Semantics to you maybe, but it’s important in loan processing circles.

   I’ve never liked 80/20 loans because you’re not putting any of your own money into the purchase. On an 80/10/10, you’re coughing up 10% of the purchase price, and have a greater stake in the property.

   Do you have 401(k)? You may be able to make yourselves loans from them, and then you pay them back through payroll deduction. Not a great idea, but if you’re young you’ll have time to replace what you use now