Not eligible for Refinance , any suggestions?

Question

Ean - 29 - Baltimore . 1 Flip , 1 rental

I bought a short sale property in the Baltimore area over a year ago for $38,000 and own it out right. Since then i have fixed it up myself and it is now worth over 100k . I currently rent one room and plan on renting all three out and the basement as soon as i fix up the basement. This would bring in around 2k a month.

A few months ago Wells Fargo froze my bank account for over a month due to a ( what they thought was ) a fraudulent charge , therefore preventing me from making other CC payments for the month and dropping my credit score 200 points making me ineligible for a refinance or HELOC etc.

My question(s) would be , is there any suggestions anyone has on how to get a refinance or anything similar ( pulling money from the home to pursue other properties ) other than a standard loan that checks credit ? My second question is does anyone have any suggestions as to how to deal with the bank? I already have Lexington Law and have written many letters , Wells Fargo even wrote an somewhat admittance of guilt letter but will not fully admit the correlation between them closing my account temporarily and me not being able to transfer funds to other accounts to make payments . This is a huge deal to me because i wish to continue investing in real estate but this will be difficult with such a poor credit score . At this point my ambition and career is on stand still while i wait for this to be resolved

Thank you

Frank Jiang · Answer

Wells Fargo is such a piece of shit bank.

Have you tried getting restitution from them?

George Taylor · Answer

@Ean McNaney From a HML point of view... We do not lend in MD so this isn't a solicitation for business. With that being said.. on our end we wouldn't need any bank statements or tax returns and it really doesn't matter what your credit looks like. Yes it will be at a higher rate but once you develop a good relationship with a HML the rates will go down. Another plus is that there is no prepayment penalty and the loans are typically interest only with the origination points wrapped into it. Most of our clients who refi just send us the paperwork, they pay for a BPO, and then pick up their check at closing. Hope this helps give some insight..

Kari Piecuch · Answer

First action item: find a local credit union. There is a huge difference between banks (for profit) and credit union (you are a member/owner).

Second action item: If Wells Fargo has not offered any resolution, file a complaint with the CFPB. If the credit card was not a Wells Fargo credit card, write a letter requesting a goodwill adjustment (google goodwill letter to creditors for ideas).

Nick C. · Answer

You can refinance through a hard money lender. You will have to pay a higher rate, but at least you will get back your ability to invest.

Brandon Sturgill · Answer

Damn @Ean McNaney sounds like a nightmare...

George Taylor · Answer

Not a problem. In the HML world it's all about how much you have to put down and how much experience you have. Glad I could help.

Ean McNaney · Answer

@George Taylor . thats interesting , i did not know that rates go down with a HML over time based on relations , good to know . I have never worked with a hard money lender before but it sounds much simpler than some other options .

Thanks for the input its much appreciated .

Ean McNaney · Answer

@Kari Piecuch - Ok that is a good idea , i know there are great with loans and usually much more personable , I just haven't gotten around to applying .

I have filed with the CFPB before, companies really do respond to them quickly , i was waiting to do this after i get my report back from Lexington Law to see how they respond to them first .

Yes there are CCs with and outside of WF . A goodwill letter is a good idea

Thanks for all the input its very helpful.

Ean McNaney · Answer

@Brandon Sturgill - I am trying to pull about 70-80 percent value of the home for repairs to the house and other investments , i have already applied to Quicken ( when i had a good score {720} before W.F. ) and was pre approved then later approved but they pulled out last minute not sure why .

The account was frozen in mid December of last year because i was talking to a banker and told her there was a small charge that i was unsure where it come from and she then told the Fraud department and they shut down all 6 of my accounts with WF . For a month and a half i could not get ahold of the person in charge of my account so i ended up visiting the branch manager 4-5 times , when he reached  out to the fraud dept they sent a letter which i sent back filled out still nothing changed , 2nd 3rd and 4th time i came back we tried different angles still nothing worked until the 5th visit when the higher ups got involved . At this point it had been a month and a half and 5 payments were missed ( even within my WF accounts ) because i was not able to withdrawal , deposit or move money. My online account was also unaccessible . The Manager wrote a brief let explaining and asked for errors to be removed but it was so brief it did not do anything for the credit bureaus .

Today i applied for a Harp 2 loan , they sounded optimistic about it so i hope it works .

thanks for your reply .

Ean McNaney · Answer

@FrankJiang - This is true! . I am looking into opening a case with them i just haven't found a lawyer yet , the amount of money from the fraudulent charge is small i am more worried about the damage this has done to my credit and fees from all the other banks that i missed payments with . Thanks

Not eligible for Refinance , any suggestions?

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