Well, I'm screwed.

[Pab Sungenis]

Wachovia Bank manages my Grandfather's estate and trusts. For the past year, their monthly statements have been projecting a payout of $400,000.00 due yesterday. With that knowledge in hand, and no contrary statements from them otherwise, my partner and I committed to buying a house (having sold our old one to developers and, knowing the money was coming, paid off debts with the proceeds) somewhere in the neighborhood of $280,000.00.

Yesterday, they sprung the fascinating news on us. It turns out that the statements they've been mailing to me have been lying. With no indication anywhere on them of this fact, they've been mailing combined statements for both my mother's trusts and mine. So, yesterday, they made a trust payout of $209,000.00.

With settlement on the new house coming in late December, purchase agreements signed in August based on their assurances, and construction already underway, it's too late to back out of that deal. I now have about two months to make up a $71,000.00 deficit and no way to do it. Not to mention other things (like much needed dental work) that are going to fall by the wayside thanks to this.

If you pray, please pray for me now. And if you do business with Wachovia, do yourself a favor and FIND A NEW BANK RIGHT NOW. The next person they screw over could be you, and they'll get to you eventually.

[helderheid]

1. Expect a miracle - I am sending positive vibes your way!

[Midlodemocrat]

2. Would your mom help you by lending you the money?

What about a conventional mortgage?

Good thoughts headed your way. I had my own bank nightmare this week with Bank of America.

They all suck.

[Oleladylib]

9. I had my own with a local NYS bank..

Daily phone contacts and personal visits..Am sticking with them though..after 50 years of bank dealings..seems we have to keep on top of everything..Good Luck!

[Totallybushed]

42. BOA sucks!

big time.

[AndyA]

3. Sending good thoughts your way.

Have you made an appointment to sit down with someone at the bank and ask them to explain this mess they've created for you? You deserve at the very least an honest explanation.

[Pab Sungenis]

13. My lawyer's working on it.

But we doubt anything can be resolved before December. This bank has been dragging everything out as long as they can, trying to get us to drop a lawsuit we filed over two years ago. We went into "mediation" in April, and they've been asking for and getting delay after delay after delay to keep them from getting back to the table. They've been stonewalling our efforts at discovery to the point where our attorney is preparing filings for contempt.

[CountAllVotes]

17. was this a "blind trust"?

If it was a "blind trust" I rather think you might be screwed. :(

I am sorry to read about this. I guess there is a lot to be said for the old saying, "Don't count your chickens before the eggs have hatched."

:kick:

[Pab Sungenis]

25. It's not blind.

We get reports of everything that's in it...mostly (85%) their own (Wachovia) money market funds. There's also a couple municipal bonds, some stock, and two mortgages where the payees have been in default for months and they won't foreclose.

[CountAllVotes]

29. ah well that is the problem - the two mortgages

and they lied about this?

Damn, this really does suck.

I'd try some different places for a mortgage. Maybe you can try a credit union?

I bank with a credit union myself and have been with the same place for 25 years. Luckily, my late mother joined this same credit union and when she passed away her estate was no problem luckily.

However, it has been a several years since she and a few other old people in my family died and things are still coming up.

You might want to check "unclaimed property" on your state's website. I just found $3,000.00 and it had been unclaimed and belonged to my uncle/father.

Look around. That house is worth at least $70,000 and the mortgage holder will most certainly know that.

Best of luck to you and I am sorry for the awful stress this is causing you.

[Pharaoh]

4. Wow! sorry to hear that

I'll pray for ya!

I pray that things will work out for you in some unexpected way and that you will be in good shape again in 2007

:party:

Peace!

[Kazak]

5. That sucks!

I'm *hoping* for you. :) I know all about the dental part of your story. I've been needing dental work for a few years now, but with no way to pay, who know when/if it'll ever get done (not to mention that I'm scared to death of actually getting it done and what it might involve...).

[Arugula Latte]

6. I hope you can get this straightened out.

I'm sending positive thoughts your way ...

[ThomCat]

7. Good Thoughts.

I hope you can come through with a loan of some kind to get you through.

[Autumn Colors]

8. Uh, apply for a mortgage?

Maybe I'm misunderstanding something here, but you were planning to buy this house with the payout from the estate so that with that money the new house would then be paid in full and you used the proceeds from the sale of the other house to pay off debts. So you were planning to have a fully paid for house and no debt.

Am I right about that?

Now you are going to have a discrepancy of $71,000?

Why don't you just do what most of the rest of us do and just apply for a mortgage for that $71,000 difference?

Somehow, I think I'm missing something about this or the solution wouldn't seem so obvious to me.

[Pab Sungenis]

15. Our credit is less than stellar.

We had been looking into mortgages a while back, hoping to buy an existing house in June and just carry a mortgage until the October 16th payout. The best we were able to get lined up would have been 15% APR.

Now, with the housing bubble burst, we've been told it's going to be even harder to get a mortgage; no one is going to want to write a mortgage for a $280,000.00 house that will be worth $250,000.00 next year, and $200,000.00 by the time Bush is done with the economy.

It might be our only hope, but I have a sneaking suspicion that IF we get one, it's just going to make our situation worse.

[LostinVA]

19. I would be very surprised if you can't get way better than 16%

My sister got a mortgage only 1.2% over the rate with a Chapter 7 less than two years old.

And, you're not getting a mortgage for +$200,000, you'll be getting one for $71,000.

It is doable, you just have to get a good mortgage person.

[Bunny]

31. But why do you have to get a mortgage for $280K when you only

need $71K? You'll have a hell of a lot of equity upfront to use as collateral on the $71K. Even with crappy credit, you should be able to swing this. If your interest rate is a little high now, you can always refinance the loan when you get the situation straightened out (hopefully in your favor) with Wachovia.

Is there more to this that I'm not seeing? :shrug: I'm sorry that it hasn't worked out exactly as you planned, but it seems like you have some options.

[Pab Sungenis]

37. We don't.

Even a $100,000 loan (the lowest most places will write) is pretty much out of our reach.

[Xithras]

38. Whoever told you that is full of it

Banks only balk at writing mortgages for more than the property is worth. A $71,000 mortgage on a $250,000 house? That's what bankers call a "sure bet". If you default, the house will be worth nearly $180,000 MORE than you owe. Very few banks would turn that down.

If I were you, here's what I'd do. Take out a mortgage that covers the discrepancy + your major outstanding debts. Your initial interest rate will suck, but paying off your major bills will improve your credit rating. Pay your bills on time for the next year, and in 12-15 months refinance the mortgage with another company. Do NOT take any money out, just refinance it. I guarantee that if you pay off your major bills and show a year of good payment history, you'll get a far better interest rate the second time around.

[Pab Sungenis]

41. Thanks for the advice.

I'm going to have to cast my net wider, then.

[DURHAM D]

44. Did you ask Wachovia for a mortgage loan?

After all, they have you money and your family's money.

I hate trusts/banks. If you were in Oklahoma I could recommend a really good attorney. She is busy right now though, helping my friend remove six family trusts from Bank First. It has taken four years to date and she will have three more trials after the current one.

Banks see trusts as their money - not their client's once it comes inside the bank. Obviously Wachovia feels the same since you seem to be invested mostly in Wachovia.

[Sammy Pepys]

10. Is it too late to get a mortgage? n/t

...

[meisje]

11. gee I'm sorry you had a couple of 100 thou coming and you blew it

I'm sure all of the DU'ers who can't even pay their heating bill will shed a tear for you

[Midlodemocrat]

14. That's not necessary.

People's personal problems effect them based on their own reality.

[Pab Sungenis]

16. Not to mention the amount of charity work I have done.

I've given to charities regularly. I've HELPED people who couldn't pay their heating or electric bills. I've paid for people in bad situations to keep health insurance. I've done numerous benefits at my theater to help people in trouble.

Ironically, if I had only been greedy and worried about myself, I might not be in this situation myself.

[Midlodemocrat]

20. I hear you.

"If I had a dime for every dime I gave away"...

But, giving and helping is what we're supposed to do.

I wish you the best in this situation.

[annabanana]

28. thank you.. . . . . .n/t

[babylonsister]

18. That's pretty rude; the OP gets screwed by a bank, and

that's all you can come up with?
I don't feel any animosity towards him/her, or anyone in different financial straits than myself.

[Gabi Hayes]

21. really..what a jerk

let's begrudge someone's 'good fortune,' while ignoring malfeasance by a fricking bank.

interesting choice, yes?

[Midlodemocrat]

24. But, but, didn't you know?

If you aren't starving you aren't a true dem? :sarcasm:

The attitude on this board to people who have been fortunate financially is really hard to bear.

[Flying Dream Blues]

27. Yes, it is hard to bear. Thank God all dems arent impoverished, or

we'd be even more screwed than we are already.

[WilliamPitt]

40. Yup...this train's never late.

I scrolled through the comments looking for something like this, because sadly, I knew something like this would be in here.

*sigh*

[bluestateguy]

12. "Well, if the liberals would let President Bush get rid of the estate tax"

Oh, never mind. It doesn't apply in this case.

In fact, it doesn't apply in most cases.

[hedgehog]

32. I don't think the estate tax would apply

This was money that was supposed to be coming out of a trust. Besides, the amount involved wouldn't trip an estate tax in any case, even before Bush started screwing around with it.

[timber84]

22. Get a mortgage!

[MissB]

23. That does suck.

Hopefully you'll be able to get a construction loan for the $71k you're short, and then turn that into a normal mortgage upon completion of the construction. Construction loans have higher interest rates, iirc.

Even with shitty credit, you should be able to find a bank that will write a mortgage. You're walking in with a huge downpayment.

[MadHound]

26. Go over these trust statements carefully

Go back and re-examine every single pertinent document. If there is no mention of these statements being the combined record of both trusts, you have a nice little lawsuit. You could probably force a settlement, especially if you start bringing down people from your state AG office down on them. Contact the SEC and the Office of the Comptroller of the Currency at [phone]. These are the two federal agencies that regulate banks. Your state also has an office, titled some like the Comptroller or the Currency or some such who can be a valuable source of information, and even a rule enforcing body if the bank is chartered in your state. If you start bringing down the full force of the law down on them, they'll cave quickly and settle with you. Granted, this is going to be a lot of work on your part, and it's a long term solution, not a short term one. But that's the way this has to go down. For the short term, I really can't help you other than saying as others have, look into getting a mortage in order to make up the difference. Perhaps you can attach that onto the amount you sue for or the settlement.

Above all, hire a savvy lawyer now. Good luck, I wish you the best:hi:

[CountAllVotes]

30. excellent advice!

Thanks for posting this very good advice for this person! Find a lawyer is right and find a good one. Get one lined up before you dump the one you have however.

:kick:

[hedgehog]

33. Maybe Wachovia would be willing to set up a reasonable

mortgage in order to avoid a law suit?

[MadHound]

35. Frankly, if I were in the OP's position

I would absolutely have no other business dealings with Wachovia. Besides, paying them any sort of interest after such a screw job is not justice. If they're sending out wrong and misleading statements, then they need to be brought under control, now. A lawsuit, coupled with bringing down the Feds and other regulating agencies will insure that Wachovia straightens their shit out quick. Settling for a quicky low cost loan simply allows Wachovia to continue to screw over other people.

[CountAllVotes]

36. you are right!

I had a friend that recently inherited money via a "blind trust". She is dealing with Merrill-Lynch and she did not end up with nearly the amount she had thought she was going to get.

She referred to them as her "bank". I told her that Merrill-Lynch is NOT a bank, it is a company that has the majority of it's holdings in the stock market.

I advised her to get the money out of there. I don't know if she can is the problem it seems.

They play all sorts of games with her too. They told her she could not buy a new car because it is illegal.

I just hate these places!

:kick:

[lumberjack_jeff]

34. I need to make sure I understand what I'm being asked to pray for

On anticipation of a $400,000 inheritance, you:
a) deferred dental work
b) began construction on a new house
c) sold your old house, using the equity to pay off $280k(!) in (presumably non-mortgage) debt
d) recieved the unwelcome surprise that the $400k you anticipated is co-owned by your mother.

This sounds uncharitable, but financial suggestions all address the symptoms, not the problem.

I honestly hope it works out for you. To start, I would suggest reading the book; "your money or your life".

[Pab Sungenis]

39. Actually, no.

Our old house sold for $75,000.00. That was used to pay off old debts.

When we started looking for a new house (part of the deal with the developer lets us live here until the end of the year, with taxes and insurance held in escrow for that period) we used the statements from Wachovia, even running things past their attorney (who is quoted as saying "your numbers look right to me") as a basis for planning a purchase. We decided to purchase new construction from the same developer. (This was part of what got us the right to live here in the meanwhile.) The last $13,000.00 of the $75,000.00 went to a down payment.

As for what to pray for, just pray for my sanity after all this.

[Kingshakabobo]

43. I'm a mortgage loan officer.....

If I were you, I would have my credit re-pulled. It should have improved significantly if you payed off your debts...... Most lenders sell loans on the secondary market to fannie mae or freddie mac - these are the most efficient and cost effective loans. The loan shouldn't be all that hard to qualify for given a 25% loan to value - even with low scores. A low loan to value will go a long way to help your case.

You CAN get a loan for 71k but you may have to pay a SLIGHTLY higher rate due to the decreased profitability of servicing a smaller loan....or you can pay a point to keep the rate at market.