Sarah Mirando  |  November 25, 2011

Category: Legal News

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Wells Fargo LawsuitA class of angry homeowners have filed a class action lawsuit against Wells Fargo claiming the banking giant illegally refused to grant permanent loan modifications it promised to give homeowners who successfully completed a trial mortgage modification under the Homeowner Affordable Modification Program (HAMP).

According to the Wells Fargo mortgage modification class action lawsuit, Wells Fargo committed breaches of contract and violated California consumer protection laws by misrepresenting the terms of the HAMP trial periods plans (TPP), designed to be a path toward a permanent mortgage modification.

The homeowners say they agreed to a reduced mortgage payment amount with Wells Fargo, subject to a three-month trial period to allow borrowers to prove their ability to meet the new obligation. Wells Fargo sent the borrowers letters explaining that if they “make those payments successfully and fulfill all the trial period conditions, we will permanently modify your mortgage loan.”

According to the class action lawsuit, however, this never happened — it was a ruse designed to induce consumers into sending payments to Wells Fargo, even when Wells Fargo knew that it had no intention of granting the permanent loan modification it promised.

“We believe Wells Fargo used the false promise of permanent modifications to extract millions of dollars in payments from its customers,” said one of the attorneys representing the homeowners. “We will prove in court that Wells Fargo’s operations turned a program designed to help homeowners into a revenue stream for the bank.”

The Wells Fargo HAMP class action lawsuit is seeking restitution of the payments homeowners made as part of the agreement, as well as to recover all other funds or property lost because of Wells Fargo’s alleged illegal activities.

 

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237 thoughts onWells Fargo Mortgage Modification Class Action Lawsuit

  1. Diane Welfley says:

    We were approved for a Loan Modification by ASC servicing which was a subsidiary of Wells Fargo. We paid on this modification for 18 months and had received a Truth and Lending signed and notarized to the proof of the modification. I came home from work one day and there was a orange envelope in my mail box. When I opened it up it was a letter of foreclosure on our property. We made a phone call immediately to Wells Fargo. The told us on the phone that we were never approved for the modification. I said then why have you been excepting $1259 a month from us for 18 months. They said it was being applied to our loan, which I thought was our modification. Well the fight began, I fought in mediation at foreclosure court. We went back and forth for almost a year. Proving with my paperwork that there had been a modification set in place. The court could not understand why Wells Fargo did not do this modification. At the end of this we found out that an investor had stake in our property and refused to let this modification go through. We then had to hire an attorney which through that following year in 2013 he received $16,000 from us. We fought in court and all the documentation was entered into court. This was when we found out that everyone must have been in cahoots with Wells Fargo. The denied our law suite and agreed with Wells Fargo. It was then that we got a representative from the state of Ohio who let us know about the Make a Home affordable modification.
    We even got a hold of the Investment company that supposedly had stake in our home. They said that they had no interest in our home. It was after that Make a Home affordable contacted us about assistance. Well 6 years it took to get to this point. I even had to have them get off of my credit report because my name was not on the mortgage.
    So the Make a home affordable came through, but Wells Fargo raised our original Mortgage amount to $166,000. The original mortgage amount was $144,000 which is still showing that in public records. We got a 5% interest rate, but they had stopped taking payments from me way back when this all began with the foreclosure, so we had $56,000 in payments owed. They put this as a second on my statements. We were told that, that was not a second mortgage, but yet on our credit reports it showed we owed over $220,000. Not $166,000 which was the new modification. We did received $18,000 a year for three years on the principle, per the make a home affordable guidelines, but the problem is, is that they raised out original mortgage amount to $166,000 which was $22,000 dollars more than the original $144,000. We are coming up on 5 years since the Make a Home affordable began and in the contract it says if we stay in the home 5 years they will give us $5000 towards our principle. This will be happening on Feb. 23 this year 2019. What is funny is that we will be back to our original Loan amount after 15 years in this house. Our home has been 100% profit for them and we have no equity in our home at this point, and I can’t refinance it, it will be over 85% loan to value. Wells Fargo are thieves and I got cancer from the stress of this whole thing. I hope they get what they deserve!

  2. Terri glasgow says:

    I was hurt on the job years ago, have been on wirkers compensaion since then, i modifiedmy loan also,, i had several surgeries and on alot if pain meds , Wells Fargo sent a representative to my house and refinanced my house, I couldn’t even sign my name right, it took 10 signatures to finally have it accepted, since then my mortgage is much higher then originally, i owe more in the house then i paid for it now!!!

  3. Kathleen L Nerney Kevin P. Nerney says:

    When my husband was diagnosed with a fatal GMB Brain tumor we called Wells Fargo for a Loan Modification….got the ROYAL RUN AROUND….we had GREAT credit however we knew that this would be a burden that needed to be “fixed fast”. They lied……the phone calls were abusive, mean and as I dealt with a husband in treatment, our lives were turned upside down. Bottom line that Loan Modification was MORE than our normal mortgage payment. My husband is gone and I no longer have the home….but I’d LOVE to “GIVE IT TO THE BITCHES” who miss handled our account. The loss of my husband (of 30 years) was very sad. However the miss treatment of our mortgage, and of us was a HORROR!!!!!

    1. Erika says:

      Boy oh boy do I get you!!
      In fact,I can relate to every post every post I’ve read in one way or another!!
      They really should be “OUT OF EXISTENCE” by now!!
      I fought them for over 3yrs in federal court only to be dismissed AND never see a dime back that WFM requested of me to “speed a home modification loan request along” or my payments made to the court in order to prove i could make our house payment.
      This came after we got a couple months behind following my heart attack & carotid artery “roto-rootered”!
      We lived in limbo for three years & I came to find out they never even held title lean on my home!!
      The top people need to be “tarred& feathered”…run outa business!! How are they STILL ALLOWED TO F#@K UP people’s lives like this!??

  4. Arun says:

    Lost my job last year and WellsFargo made a temporary mortgage assistance and told me that once I get a job, I could go back to my payments and they will modify my mortgage. Now since I got a job and wanted them to start the modification, they denied my modification application and told me that they will put me for foreclosure. I am ready to start my payments but they will not accept that. Where can I be included in the complaint and class action lawsuit.

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