Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Judge Approves Calif. Wells Fargo Mortgage Settlement on Third Try
By Matt O’Donnell
A California federal judge yesterday finally signed off on a $500,000 class action lawsuit settlement between Wells Fargo and California homeowners who claim they were misled into making payments on homes headed into foreclosure.
On April 18, 2013, U.S. Magistrate Judge Joseph Spero preliminarily approved the Wells Fargo foreclosure settlement after previously rejecting it twice. Last month, Judge Spero told attorneys he needed more information before he could approve the deal, including how many Class Members are likely to make claims under the settlement, which is capped at $500,000 under California’s Rosenthal Fair Debt Collections Act.
“Obviously, it’s one kind of case if the [$500,000] is being paid to 25,000 people, and another if it’s paid to 1,000 people,” Judge Spero said at the March 22 hearing.
The settlement will resolve a class action lawsuit accusing the bank of sending special forbearance letters to delinquent borrowers that tricked them into believing they could delay foreclosure by making payments. Plaintiffs said Wells Fargo didn’t always follow through on its promise to modify their loans if they made more payments and that its forbearance-to-modification program was merely a ruse to get money from delinquent customers.
Class Members of the California Wells Fargo foreclosure settlement include borrowers who received these special forbearance letters between March 12, 2009 and October 31, 2012.
A settlement website will be established and notices mailed no later than May 31, 2013, according to court documents. Class Members will have until July 19, 2013 to file a claim.
Keep checking Top Class Actions for details on how to file a claim once they’re available, or sign up for our free weekly newsletter below.
The California Wells Fargo Mortgage Class Action Lawsuit Settlement case is Gustavo Reyes et al. v. Wells Fargo Bank NA, Case No, 10-cv-01667, U.S. District Court for the Northern District of California.
The plaintiffs are represented by Steve W. Berman and Thomas E. Loeser of Hagens Berman Sobol Shapiro LLP, by Peter B. Fredman of the Law Office Peter Fredman and by David Pivtorak of the Law Office of David Pivtorak.
Updated April 19th, 2013
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
5 thoughts onJudge Approves Calif. Wells Fargo Mortgage Settlement on Third Try
I did just as they asked. Dates of trial payments ,six in all registered mail to them Have heard nothing from wells regarding anything. all I have is the registered green tag given to me by post off .after sending this form in. some suggest something for me . How do I proceed , should I once again be waiting to here from the devil itself ( Wells Fargo) please help,thanks
Does Wells Fargo own Aurora Bank or GMAC? I received a claim form in the mail.
How do you know if you qualify for this? Will Wells Fargo mail out postcards or notice letters?
I didn’t likehow wellsfargo didn’t always follow through on it’s promise to modify the loans if they made more payment.
Send info and a claim form thanks.