Wf/asc - Update

lorifrank

LoanSafe Member
Apr 17, 2013
48
1
8
Hi Everyone -

Just posting a lesson learned -

As advised when we listed and got an offer for our SS, we stopped paying our loan modification. Well, on Friday, WF/ASC took it upon themselves to post a 2 month payment amount (6k) to our checking account without our authorization.

Because I have alerts set up on that account, I was notified immediately by the bank - I had to go in and sign a document that I did not authorize this payment - the officer of the bank actually got our home preservation specialist on the phone while I was there.

Because she could not produce the "authorization recording" - the bank refused to release the funds! The bank officer immediately asked for and spoke to the specialist's supervisor. By the end of the day, we learned that specialist was no longer on our account.

Has this happened to anyone? To be on the safe side, the bank is now changing this account number for me - but seriously?

Lesson learned. Keep your bank in on the loop for all ACH transactions -
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,851
467
1,000
49
Southern California
www.loansafe.org
Hi Lori,

The bank has a legal clause where they can actually take money from your bank account and it's called the right to "set off." It is that small fine print in your account agreement with the bank.

Are you in California? Because California has the "one action rule" and the "security first" rule, the bank would lose their lien on the property if they exercised the right of set-off because the mortgage then becomes an unsecured loan. There was a decision in California Supreme court which affirms this.

Here is a good link on this: Introduction to California’s one-action and antideficiency rules
 

lorifrank

LoanSafe Member
Apr 17, 2013
48
1
8
Thanks! I am not in California - but I was not about to let them have any more money!