Wells Fargo Home Reaffirmation
Posted: Mon May 13, 2013 3:45 pm
I have had personal experience with Wells Fargo treating a refinance as a
new loan: they were requiring my client to get a subordination of an IRS
lien notice to their loan modification. IRS refused, saying that it
doesn't subordinate to a refinance of an existing loan, but Wells Fargo
insisted that the transaction was actually a new loan to record (although
it wouldn't produce the purported new loan documents for signing or
subordination). The experience was so irrational that I fully expect that
Wells Fargo will take the position that a reaffirmation creates personal
liability where it didn't exist before.
John D. Faucher
Faucher & Associates
*818/889-8080*
On Mon, May 13, 2013 at 7:33 AM, cdcbaa wrote:
> **
>
>
> Shannon, et al:
>
> Is a reaff a refinance? I take it you are saying that a purchase money
> loan, when reaffirmed, becomes a personal liability? If none of the terms
> are changed?
> Isn't a reaff just a statement that the debtor continues to agree to pay?
> That seems substantially different than a new loan taking out an old loan.
>
> What are the requirements for losing the purchase money designation?
> There is no new money loaned when the reaff is signed.
>
> I don't know the answer.
>
> Lou, anyone else know?
>
> D
>
> "Anti" is a prefix. Antideficiency
>
> On May 6, 2013, at 10:07 AM, "Shannon Doyle" wrote:
>
>
>
> What if the reaffirmation includes the loan modification? Not just a
> promise of a loan modification but as part of the reaffirmation agreement
> itself. I suspect the banks are using the lack of reaffirmation agreement
> as an excuse for denying the loan mod. In any event, it still violates
> California anti-deficiency laws so even if debtor gets a loan mod as a
> result of reaffirming but still cant pay the mortgage, they are now in a
> position where they have signed personal liability for the loan.****
>
> ** **
>
> Shannon A. Doyle****
>
> Attorney at Law****
>
> ****
>
> 100 N. Barranca Avenue, Suite 250****
>
> West Covina, CA 91791-1600****
>
> Tel: (626) 646-2555****
>
> Fax: (626) 332-8644****
>
> www.blclaw.com ****
>
> ** **
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com]
> *On Behalf Of *Havkin Stella
> *Sent:* Friday, May 03, 2013 8:13 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* Re: [cdcbaa] Wells Fargo Home Reaffirmation****
>
> ** **
>
> ****
>
> I have helped at the reaffirmation hearings for several years. I can tell
> you that the Valley judges, will not reaffirm mortgages. I only saw two
> in two years and they involved principal reductions. So definitely an
> issue. I will tell the judges this month. See what they say.****
>
> ** **
>
> -----Original Message-----
> Sent: May 3, 2013 7:42 PM
> To: "cdcbaa@yahoogroups.com"
> Subject: Re: [cdcbaa] Wells Fargo Home Reaffirmation
>
> Stella:
>
> This is an interesting problem for us. When we do not reaffirm, we put our
> clients in the position that they do not have any contract to modify.
>
> We need to rethink if we are going to tell people to reaffirm mortgages.
>
> dennis
>
> Sent from my iPad
>
> On May 3, 2013, at 1:18 PM, "Stella" wrote:
>
> > I am getting calls from clients who were dischraged in Chapter 7 several
> years back and who are trying to modify their home loans. WF is insisting
> that they reopen their bankrupties and get a reaffirmation approved before
> they modify their loans. I keep telling my clients that it is not going to
> happen, but WF is insisting and will not modify the loans without a
> reffirmation. Is anyone experiencing the same thing? Is this some sort of
> violation under the new program?
> >
> > Stella Havkin
> >
> >
>
> ****
>
> ****
>
>
>
I have had personal experience with Wells Fargo treating a refinance as a new loan: they were requiring my client to get a subordination of an IRS lien notice to their loan modification. IRS refused, saying that it doesn't subordinate to a refinance of an existing loan, but Wells Fargo insisted that the transaction was actually a new loan to record (although it wouldn't produce the purported new loan documents for signing or subordination). The experience was so irrational that I fully expect that Wells Fargo will take the position that a reaffirmation creates personal liability where it didn't exist before.
John D. Faucher
Faucher & Associates818/889-8080
On Mon, May 13, 2013 at 7:33 AM, cdcbaa <cdcbaamailbox@gmail.com> wrote:
The post was migrated from Yahoo.