Accidentally violated covenant (insurance, loan, credit, loan)

[cbluciano]

First time home owner here. I have a covenant in my mortgage where I agreed not to replace a leased car after the lease expired. That was a year ago. My lease expired last week and I decided to purchase the car and took out a loan to pay for it. Wells Fargo contacted my on Friday to talk about it.

I landed a better paying job 6 months ago and can easily afford the $390/m payment and insurance. The new job gives me another $1400/m gross.

Any predictions on how the bank will respond when I call them back on Monday? If they are logical about it, my added income should allow it not to be a problem. I realize now I should of called them beforehand but was not even aware they would find out. I am responsible in managing my money and would not of purchased the car if not for the added income. No late payments on the mortgage and +800 credit.

[Anonymous Lurker]

So when your car lease expires what do they expect you do to do for transportation to get back and forth to work where you earn your money to pay the loan?


Secondly it sure is sad that we have become so enslaved to these bankers and the entire credit system just to live under their rules. We truly are slaves.

As for predicting what the outcome will be? More than likely they will simply add some sort of penalty ($$) on the loan, after all the only thing these vultures care about is making more money.

sorry I am of no real help and that I came in to simply rant.

[SmartMoney]

Okay, why do I feel we are missing some pretty large holes here?

Why would you have an agreement with Wells not to take on any additional debt? Did they forgive interest? Modify your Note? Consumer counseling? There are no provisions that can extend beyond signing of the Note, unless there is something of an unusual nature going on. Are you certain you understood them correctly?

There could be an innocent reason for the call. Example: I pay my mortgage via my bank's bill payer website. Only one month, my payment changed and I didn't open the statement and my payment was less than the required amount. Lucky fo me they called before I was 30 days late. And what do I do for a living?

[need4speed2012]

You: I have a covenant in my mortgage where I agreed not to replace a leased car after the lease expired.

Me: I need the rest of the story, meaning the truth because this is ridicules.

[varanj_16]

Originally Posted by SmartMoney

Okay, why do I feel we are missing some pretty large holes here?

Why would you have an agreement with Wells not to take on any additional debt? Did they forgive interest? Modify your Note? Consumer counseling? There are no provisions that can extend beyond signing of the Note, unless there is something of an unusual nature going on. Are you certain you understood them correctly?

There could be an innocent reason for the call. Example: I pay my mortgage via my bank's bill payer website. Only one month, my payment changed and I didn't open the statement and my payment was less than the required amount. Lucky fo me they called before I was 30 days late. And what do I do for a living?

The story seems weird to me as well, as once the underwriter has given you what your residual income is at the time of approving the initial loan, then where does the question of making further agreements and promises on not ever owning a new car comes into the picture?

[BirdieBelle]

Probably has something to do with this:

//www.city-data.com/forum/mortg...l#post37772860

... which got NO replies.