Joe the Realtor has Bank Account Raided by Wells Fargo
Posted Apr 25, 2009 @ 4:10 am, Viewed by 1896 Visitors, Read 1928 Times.Homeowners Facing Foreclosure Beware
Apparently there could be situations that legally allow your lender to automatically drain your bank account if your home loan and bank account are with the same financial institution.
Click on the following Link to see what happened to one Tempe, Arizona REALTOR in financial distress and facing foreclosure:
Wells Fargo Drains Bank Account of a Homeowner facing Foreclosure
According to a statement from Wells Fargo... Federal and State Laws allow this "common" practice.
The sad part is that the money that was put in there was given to him by his mom to help pay for his upcoming wedding.
I think it's pretty safe to say that Joe the Realtor will not be referring any clients to Wells Fargo for a home loan anytime soon...
Will thIs be a PR Nightmare for Wells Fargo that is in an industry that already has an image problem?
Paul Francis, CRS
Prudential Americana Group - Realtors
Las Vegas Real Estate
702.592.3058
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Wow that is brutal. Of course this might happen with other banks too, not just Wells Fargo.
That is really harsh. Also it is one more thing to tell people when trying to list a short sale.
For an Update.... I talked to an Executive with a bank and according to them.... a bank can raid the clients account if that client is in default on any loan. Home loan, HELOC, Car Loan, Credit Card, etc...
While it's not normally practiced... (for now) ... it is legal.
(Thanks to whoever is handling the SEO for a Las Vegas Real Estate Company with a Baloon as a logo and Central in it's name for spamming this post. It reminded me to update it with the information above while I denied the spammy comment.. 
)
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Paul Francis, CRS specializes in the Master Planned communities of Las Vegas including Summerlin Real Estate, Lake Las Vegas and Green Valley Real Estate. Read More
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Ouch! But I'm torn on this. In fact, if I were in Joe's shoes, I probably would have wondered if I had my checking/savings in the same bank as my mortgage (or 2nd mortgage as it sounds like it was in this case), I would be fearful enough that this might happen that I would have switched my checking/savings to a different bank if I was handing the place back.
On one hand, I'm surprised they can just help themselves, but then you owe them that money. So many people think that going into foreclosure or a deed in lieu or short sale erases your debt. That isn't always the case.
I don't think I'd be too excited about marrying Joe right now...