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  1. #1
    Join Date
    Aug 2013
    Posts
    4

    Default Bank Wants to Switch Legal Description to Fix Their Mistake

    My question involves a mortgage in the state of: PA


    Short version:

    When I refinanced my Vacation Home in 2005, they Bank placed a lien against my Main Residence. The "Legal Description" in this Note uses the Deed from the Vacation Home but in certain other places the description adds the mailing address of my Main Residence. In 2005 and before, the Vacation Home did not have a mailing address but some other documents referenced one of two nearby towns. That was confusing since each of those towns are in different counties while the Vacation Home is actually in a third county. I have pointed out their error to the Bank and all they want to do is change the description in the Note to my Main Residence since the Vacation Home has been sold. I believe I should be able to leverage their error into more favorable terms on this Note.

    Separately, I had asked the Bank to refinance a different 6.5% Fixed Mortgage and they said that it did not qualify for any of the government programs because they held the note itself. In order to refinance, I would need to submit an application and pay the same fees that any other customer would pay.

    Long version:

    Recently, I had 4 outstanding Home Equity Loans, 2 fixed and and 2 HELOCís on my main residence and vacation home. All were issued by Wachovia Bank, which was purchased by Wells Fargo Bank so they were all converted to Wells Fargo Loans. I believed these were as outlined below with the current balance, APR and time remaining and original year:

    Main Fixed: $140K, 6.5 %, 8 years - 2006
    Main HELOC: $400K, 3% Interest only - 2004
    Vacation HELOC: $140K, 4.5% Interest only - 2010
    Vacation Fixed Refinance: $25K, 5.19%, 2 years - 2005

    About 6 months ago, Wells Fargo converted the Main Fixed from their Equity Department to their Home Mortgage Department, but that does not affect this issue.

    While in the process of selling my vacation home, the title company advised only the Vacation HELOC was a lien on the vacation home. The Vacation Fixed Refinance loan was not filed against the deed to the vacation home. I then did research and found that during the refinance of my vacation home mortgage in 2005, the Bank filed the lien against my Main Residence. My reasons for saying this Loan was for my vacation home are as follows:

    Wachovia Bank sent the proceeds of this Vacation Fixed Refinance to Washington Home Mortgage to pay off their mortgage on the Vacation Home.

    The appraisal performed to qualify the Loan was of the Vacation HomeVacation Home.

    The LEGAL DESCRIPTION page of the Loan describes the deed of Vacation Home

    I spent over two hours on the phone with the Bank alerting them of the error. They said there was no error and the Lien was properly placed on my Main Residence. I also told them we would proceed with the sale without paying off the Vacation Fixed Refinance. They said they would forward my concern to their research department for review.

    Wells Fargo has replied saying there was indeed an error but the error was including the description of the Vacation Home in this Loan. This is not the case, but because the Vacation Home has been sold, changing the collateral to my Main Home is the only way for them to secure this Loan even though it would give them 3 outstanding Loans against my Main Home.

    Wells Fargo wants me to sign the revisions and is only willing to reimburse me the Notary costs and have not offered anything else in return. I do NOT believe their error is grounds to forgive the $25K outstanding balance but, I believe the interest rate would have been lower than 5.19% had the original Vacation Fixed Refinance used my Main Residence all along as security.

    Is it reasonable for me to propose the original 5.19% would have been something like 3% and recalculate the number of payments remaining using 3%? That would eliminate the last 14 payments.

    An alternative would be to propose they replace both of the fixed loans with one new loan at the current rates and a new time period without submitting an application and/or payment of application fees. Is this also reasonable?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Bank Wants to Switch Legal Description to Fix Their Mistake

    If you don't like the interest rate you accept when you are offered a mortgage or HELOC, your remedy is to look for a different loan with more acceptable rates.

    If you want to replace your loans with a different loan, the process is that of refinancing.

  3. #3
    Join Date
    Aug 2013
    Posts
    4

    Default Re: Bank Wants to Switch Legal Description to Fix Their Mistake

    Right now, the bank has an unsecured note. I guess as long as I keep paying it, they won't have a problem with whomever they sold it. If I miss 90 days, they will have a problem.

    All I'm saying is I think they should offer me something to fix their mistake and secure the note.

    The interest rate was based on the collateral. Different risk, different rate. If they want to change the collateral, I want them to change the rate.

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Bank Wants to Switch Legal Description to Fix Their Mistake

    I then did research and found that during the refinance of my vacation home mortgage in 2005, the Bank filed the lien against my Main Residence.
    how is it unsecured if there is already a lien against your primary home?

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