Is Wells Fargo Evil?

25 Replies

I’ve been working with a woman who bought a duplex ten years ago. She bought it from Wells Fargo and got her mortgage through them as well. According to her she was told that there were some taxes that needed to be payed, but the bank would pay them after closing. 6 months after she closed she claimed that WF dropped 30K in taxes on her. She filed a class action lawsuit against WF and was working with a lawyer who had 3 other clients with similar stories agains WF. A few months into the process her lawyers car “mysteriously burst into flames” with all of their records in it and the clients got scared and just walked away. The woman I’m working with said that she “walked away from the property.” She hasn’t payed her mortgage or taxes on it in 8 years, but it hasn’t gone into foreclosure. Today I went to the tax assessors office and got all the tax information that they had. What I discovered is that WF has been paying everything since around 2010. My concern is that they’re just paying everything waiting for another sucker to come along so that they can dump weird fees on them. I’ve done a little bit of research and there’s a ton of claims against WF doing crazy stuff like this. What should we do?! We are going to talk to a legal professional and we love the property, but we also don’t want to get stuck in a nightmare situation. Thank you in advance for all the advice.

Crazy story! Do the numbers look good? If you want to press forward I would lawyer up. Are there any lines on the property?

@Anthony Rodriguez I'm not sure about all of it. From what she told me she bought it for around 100,000 but she hasn't payed a cent in eight years. She just wants to get it done with. She would hand it over for a dollar if she could, but with the way Wells Fargo has handled the situation with her i'm not sure how that would go. She said that she tried to do a short sale years ago and they said no. I'm hoping that since we know what has been going on it will be a little easier for us. She had no idea about any issues with the taxes or anything before she bought it.

Most of the large mortgage servicers are getting sued. Mortgage servicers paying taxes is common as they don't want a tax lien placed on the property that could foreclose and take senior position.

Wells Fargo likely services millions of loans that things like this don't happen on. 

Why'd they say no to the short sale before? Who's the investor or insurer on the note?

@Brett Goldsmith The "Evil" part may have been a bit dramatic haha. I know that the majority of loans that Wells Fargo issues are fine and those people don't deal with things like this woman has, but I don't think it's a coincidence that there are many stories like hers. I can only assume they said no to a short sale because they wanted her to pay the taxes that she didn't want to pay. The only parties I have knowledge of being involved in the process are this woman and Wells Fargo. I don't know any information past that.

Trust me, this is all a crock of sh$$......people make up all kind of things to justify or excuse their own behavior/actions.

@Wayne Brooks Why would Wells Fargo continue paying everything on the property then if there was nothing weird going on? Wouldn't they just go into foreclosure on her?

all banks are evil ;)

Banks always pay taxes for properties they have mtg.s on.  Why they haven't idea, but paying the taxes doesn't let them "stick the next owner with a bunch of fees".  Either get a short sale started or forget about it, and don't believe everything sellers in distress tell best deals have all involved an owner in distress due to some some perceived "injustice", mental/drug/alcohol issue, etc......and trust me, it was Never their fault.

@Wayne Brooks I completely understand your viewpoint! Trust me, I would love it if it was her fault because it would make things a lot easier for us. The property isn't listed and she's not even trying to sell it. My wife and I walked by it the other night, I found the records on the tax assessor's website and reached out to her. I asked her if she owned the property and her response was "I don't know, I haven't payed anything on it in 8 years and told WF I wouldn't." I hope it's a clear cut issue, but the few RE people i've talked to around here think there's something weird going on. We will talk to a lawyer and then most likely approach WF directly.

@Tim Moore The owner should ask for a payoff statement from Wells. If you don't have written authorization from her, Wells isn't going to talk to you.

@Tom Gimer Someone I talked to suggested getting a quit claim deed from her so that I could talk with the bank, but wouldn’t that leave me liable for the taxes etc? 

@Tim Moore Quitclaim will just add you to the eventual foreclosure case, among other things. Get a borrower authorization form signed by your girl and submit a written payoff request ... you'll need a FAX number or they'll snail mail it.

A QCD does not get the bank talking to you, just gets you named in the foreclosure as @Tom Gimer mentioned.

This is a shortsale (particularly with the years of non payment).......there is no other choice, other than waiting for an eventual auction.

Why no title insurance claim filed? O.o

The taxes should have been paid at closing, not after. The title company would have had all of this on the HUD when she bought it from the bank, so something is weird. Taxes are very black and white when it comes to closing on a property. This is not something that is dropped on you "later". Something is very off with this.

Yes, wells fargo is perfectly evil

and this sweet old woman is perfectly good, has never made any mistakes, and doesn't deserve to be in this situation.


I work for a bank, weird stuff happens all the time. The likely reality is that both parties emotionally absolved responsibility, blamed the other, and it never got fixed.

Not sure if they are evil, but they are the worst bank that I have ever dealt with. 

I think the burning car story is a bit far-fetched. However, Wells does not exactly have a good track record of honesty and maybe dealing with them is in fact cause for pause. Remember how they created thousands of false accounts not so long ago? Remember the robo-foreclosure scandal before that?  Those were not urban legends and not small little ethical boo-boos either. I'm not saying I believe the homeowners story, but when you put it all in perspective, there is certainly legitimate reason for pause. Too much drama for me - I would walk.

Seems to me there are houses in every direction. Why not just find another one?

@Merritt S. I agree about the car situation. If it did happen I highly doubt the bank had anything to do with it. There are definitely houses all over the place. The issue is I want a 2-4 unit which my wife is fine with as our first purchase as long as she likes the location. It’s been hard to find one that isn’t in a shady part of our little city. 

@Chris Mason I’m not sure. Again, all of my information is coming from one source so it’s been hard to find an unbiased opinion on the situation. 

@Wayne Brooks is there no way to talk directly to the bank about the property? This woman said she’s done with the property and the bank. She said she’d help, but doesn’t want to get dragged back into it since it’s been eight years since she’s had anything to do with the house.

@Tim Moore You can go to WF's website and get Their ATR Authorization To Release their short sale package.  Once the owner signs this and sends it in, the bank will talk to you...but basically just the total balance due, and tell you a short sale is the only way to go.  But for a short sale, the borrower needs to be a willing, active participant.  She will have to complete the sort sale package, provide current, and updated pay stubs, etc. on an ongoing basis.  If she won't cooperate you are dead in the water.

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