Due to the corona virus pandemic, and the subsequent job layoffs, there are many people who will suddenly not be able to pay all of their bills. Unemployment benefits are not even enough to pay for food. Is Wells Fargo ready for this mass loan and credit card default event that will very soon, or already is, happening? What is their plan to address this impending loss situation?
9 replies (most recent on top)
Banks should start requiring 1-3 months escrow of mortgage payments at closing since evidently no one is responsible enough to build an emergency fund before becoming a homeowner, and be able to absorb even a couple weeks unemployment.
Things are changing daily. Best to wait and see what the stimulus package looks like before making decisions.
To the previous responder re telling your friends to default on their mortgages, it sounds like you definitely shouldn't be advising your friends....
2 friends called WF since March 9th and continued to call every week to report cut in their hours, thus a severe cut in pay. One works for Hilton, the other for United Airlines.
The first few calls they were told there is no assistance. They were both sent a Hardship Package and Hardship Modification by mail. I told them to call back and beg for a deferral of 3 to 6 months, fee free, and take on the missed payments to the back of the mortgage.
This past week they called again, and both were told they had to default on their mortgages before any assistance was provided in the form of not starting foreclosure proceedings.
While both friends told me the that the Customer Service Reps were kind and nice, the CSRs had ZERO information to relay or any new programs or processes to assist them. When they inquired about how that would affect their credit score and if they would incur any fees, the CSRs were completely at a loss for words.
At this point I’ve told them to default. The entire nation and the entire world is going to default. They can’t foreclose and evict everyone at the same time in one city, county, state, nation or worldwide. It’s going to happen to everyone, everywhere. They can’t process car repossessions at the same time, there aren’t enough tow trucks. Some states and Sheriff’s Departments have stopped servicing foreclosures and evictions, but not all.
Both friends have attempted to apply for Unemployment. For 2 weeks the system has crashed and they keep trying to apply. Friend from Hilton had to lay-off entire staff. Friend from United is waiting for furlough and lay-off notification due to entire flight schedule being canceled internationally. Everyone is scared.
What does this question have to do with layoffs? Take financial questions to finance websites.
You're pretty much hit and miss with who you get answers from over here.
good for you and your family paying off your house. i think wells fargo paying for people's mortgages because of the virus is nice of them tho
we just paid our house off this january. no more mortgage for me. funny our mortgage was with wells fargo and they just sent our money to us that we had in escrow. our mortgage wasn't with wells fargo at first but man glad we don't do business with them anymore.
It's a good time to buy because social pressure on banks, insurance companies and the government means they will cover my mortgage and expenses for me. That is awesome. Looking at Zillow right now!
It is also a good time to take out a student loan! The government is paying off at least $10,000 in student loans with the bailouts!
Silver lining to the coronavirus!!
They’re suspending foreclosures and repos as I imagine most institutions will. Nobody wants their name on removing someone from their home during a global pandemic...