Wells Fargo Names Most of California Severely Distressed

by Morgan on February 27, 2008

Big hat tip to reader Don for sending this along. Wells Fargo has named nearly every California county a “Severely Distressed Market” which requires LTV reductions of 5% for any conforming loan over 75% LTV and also eliminates financing over 75% LTV for any non-conforming loan. The Wells Fargo Mortgage Express product (which is Wells Fargo’s stated income/stated asset program) is also not permitted in “Severely Distressed Market” areas.

Look for the rest of the market leaders to quickly follow suit. This immediately puts a huge swath of the state with increasingly limited refinance options. A huge portion of California loans are of the non-conforming variety and well over the 75% LTV mark (especially factoring in the major price drops over the last 16 months). This does not bode well for the folks in the Golden State.

Update: I’ve taken the link to the PDF down. Here’s a link to the entire PDF of the Wells Fargo product changes and below I’ve posted a list of the California counties listed in the changes.

wells fargo distressed markets california

No word on whether this is a wholesale-only change or across the company. If you know please drop us an email.

Last 3 posts by Morgan

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    wells fargo is just a bunch of greedy fat cats that wants your property and money. thats all. they don't give a rip about people period. all their bologne on their website, etc. about working with people is utter nonsense. the first thing that comes out of their mouth is " our investor doesn't modify" oh, and if they do modify they raise their payment. now you tell me how this is a " more affordable payment" sure, for them it is. I hope with this latest scandal with them all going to Vegas on our taxpayer bailout they all get whats coming to them for once. let them sweat see how they like stressing like we do, put the shoe on the other foot. I say screw them
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    We made an offer 3 MONTHS ago on a house.
    We were approved for the mortgage.
    We were the ONLY offer on a property that had been listed over 200 days.
    Our offer was accepted by the Seller.
    Then...... we understood it as a Short Sale.
    ????????
    Our contract had a written date for Escrow.

    The Realtor kept saying that, the Bank wanted the sale to go through....
    If it went into foreclosure, it would cost them a lot of money.......
    To maybe get half the value......

    We had an ACCEPTANCE by the SELLER.
    So...... we had a valid contract.

    If the Bank had the right to reject the offer.........
    then,
    why do we need a contract with the Seller?
    The Seller is really NOT the Seller then????????????????

    3 MONTHS of being yanked along...... for NOTHING.
    Just a waste of our time.
    We did so much running around on this.....

    SOMEHOW, now, for 3 weeks....... we could not reach our Realtor.
    Next thing I knew, he lied and said that the house was going up for auction.
    "He'd tell us the auction date"...
    "The Bank had refused the offer though the Seller accepted it... ?????????

    Never heard from the Realtor again.
    Found out elsewhere that it was a lie.

    It became Bank owned AFTER our offer was accepted by the Seller.

    If it was never owned by the Seller.........
    why was it contracted between Seller and Buyer?
    We are being told that the Bank took possession
    WEEKS AFTER our offer had already been accepted...

    It now became listed by Prudential.
    We saw a post in front of the house.
    We contacted them.
    They refused to give us a listed / asking price....

    A week of searching....... for the price....
    "No price yet." was said by the listing Agent.

    Then, proceeding to paint any old which way...
    Tore up the blinds. Cut up the cables........
    The house now looked an awful mess............
    Why were they covering the water damage with paint?
    That's deceitful, and illegal.

    The story gets worst....
    They hiked the price way up high..........
    almost DOUBLING the previous asking price..
    So.... now, they were telling us that our renewed offer would not be accepted.

    I thought that deceitful Real Estate gimmicks were supposed to end......???

    What is the solution in this seemingly unfair nightmare?
    We don't intend to pay TWICE the value, nor would we have the funds,
    which had been the reason for shopping along a lower property price in the first place...
    NO Bank will lend us the money to OVERPAY for anything........

    WHERE does one report this?

    We are told that
    it was illegal to post a sign, and refuse to state an asking price.

    Then..... we're told that they belong to a different Realtor Board.

    How many gimmicks must we wade through?????????

    This nonsense should be illegal.

    We are totally bewildered.
    What a let down!!!!!

    If anyone knows any solution, or law to protect our rights,
    please inform us.

    Thank you.
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    P.S.
    Prudential wants us to be accepted by Wells Fargo
    despite the fact that we are already approved by a different Lender,
    and, seek to deal with our own Lender as planned...........
    WHAT is this all about????
    Is this even legal????????????????????????????

    This can't possibly be legal.

    I assume that they'll approve us for the DOUBLED asking price,
    while our own Lender would not approve such NONSENSE...
    Banks are NOT supposed to lend for anything higher than the real appraised value....

    This whole thing seems illogical.

    WHERE do we report this?
 

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