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Wells Fargo Deceptive Mortgage Modifications Class Action Lawsuit
By Mike Holter
Wells Fargo is facing a class action lawsuit from struggling homeowners, who say the bank lied to them about being able to receive permanent loan modifications.The Wells Fargo class action lawsuit was filed by a Kansas City couple, who say the bank offered temporary mortgage modifications with no intention of making them permanent. The couple alleges in the class action lawsuit that Wells Fargo allowed them to make lower mortgage payments multiple times, only to later inform them that the mortgage was in default and that the bank would foreclose on their home.
Wells Fargo is already on the hook for foreclosure abuse charges. It is one of four other banks participating in the historic national mortgage settlement, which will provide nearly $25 billion in relief to struggling homeowners.
A federal judge dismissed some of the class action lawsuit’s claims last week for breach of contract and debt collection violations, but allowed their unfair competition claims to remain. The judge gave the Plaintiffs permission to amend their complaint to allege damages from the bank’s alleged breach of contract.
The Wells Fargo loan modification class action lawsuit is brought on behalf of all homeowners nationwide who received a trial loan modification proposal substantially similar to the TPP (Home Affordable Modification Program Trial Period) from Wells Fargo; made the payments set forth in the proposal; and were either (a) denied a permanent loan modification; (b) offered an illusory “modification” on terms substantially similar to their unmodified loan; and/or (c) who received, entered into, and complied with a Forbearance Plan from Wells Fargo.
The case is Vicki and Richard Sutcliffe v. Wells Fargo Bank, N.A., et al., Case No. 11-cv-06595 JCS, U.S. District Court, Northern District of California.
Updated May 15th, 2012
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173 thoughts onWells Fargo Deceptive Mortgage Modifications Class Action Lawsuit
Same thing with us, told we would receive a modification after our forbanance and then told we were denied or would ask for more paper work, this went on for months, they even agreed to Settle 2k less then the balance owed, western unioned the money and two weeks later received a notice from western union that the money was denied and we needed to pick it up. Called Wells Fargo and they said they decided not to settle. After all this we were foreclosed on during a forebanance ( after they filed a fraudulent insurance claim for loss and came into the home and took pictures while we were gone for the day) and we ended up getting 5k from a settlement that we should have gotten 50k from. Nothing but heart ache for a year trying to save our home, while everyone around us was getting modifications left and right and some even received 2 modifications.
All these stories sold like mine. After months and months of trying to get a loan modification and being asked to send the same paperwork over and over, Wells Fargo told me my loan modification was approved. They were just waiting for the go al signature so they could send me the loan modification approval. One week later, they told me I was denied and there was nothing they could do. I was 7 months pregnant and both physically and mentally exhausted. My family and I needed up losing out home.
I cannot tell you how many times my ex husband and I applied for a modification and either got a response saying we needed to supply more paper work(which was very repetitive asking for the same things dozens of times) or no response at all after applying dozens of times. Ultimately, ex husband abandoned, we divorced and the house was foreclosed on. My health has taken a dive from all the stress dealing with them for over 3 years trying to get a response. I definitely want to be compensated for all the trouble we went through trying to comply with a bank that was totally non-compliant with us. I’d like to know where the link is to signup for notification on when they will be paying out compensation to mortgage borrowers.
Has anybody received a response? I was also deceived by Wells Fargo and lost my beautiful home. Pls advise if more info provided. Thank you. Happy Holidays
Please, tell me how we can get in on this law suit.
Yes I too was effected from Wells Fargo mishandling the process of getting a modification and my family ended up losing our home in 8/2013 and because of the stress of it all; took its toil on me physically, I was diagnosed with Breast Cancer the same year, in October to be exact. I just heard about this lawsuit and I would be so ever thankful if I can be included because we were not treated right with the whole process and again we lost everything! It was a horrible experience and I desperately wanted to keep my home, but they just kept lying to me and not giving me answers to why I did not qualify for a loan modification and even though I wrote them and gave them the necessary hardship paperwork that we were experiencing at the time!! Please advise!!
Thanks in advance,
Mrs. Roshell Claiborne
We need help because Wells Fargo totally lied to us about our loan modification. They then handed us over to Specialized Loan Servicing to get rid of us. They told us to make 4 house payments on time for 4 months. Our payments went from about 2200.00 a month to approximately 1450.00 a month. They did NOT explain to us that we were being charged over 10000.00 to modify, that they would push our loan to a 50 year mortgage! and that Freddie Mac would drop us.They emphasized the incredible “rate” they were lowering us to, and we thought it was a good deal. We are 64 and 65 years old. We are scheduled to pay off our mortgage now when we are 104 and 105 years old.!!!! We talked to several other mortgage lenders and they say they have NEVER heard of a 50 year loan. Wells Fargo “modified” our loan, took over 10,000.00 and quickly passed us off to another (low grade) mortgage company.
How do I get in on lawsuit. Modification was so screwed up had to take it to senators office for help. Ended up getting screwed in end and almost lost house. Never kept word with modification and ended up taking it all the way up to Congressman for my state. Still no help. Wanted me to redo another modification with no promise of it being any better.
Did u get any help?
Well fargo stole our home when we went for a loan modification in 2011. They tried to evict us 5 times and the stress became so great that we packed up and moved. My husband health was effected from all the stress. I called the attorney general and we did their own investigation and concluded they mishandled the paper work. And yes we want compansation.
My fathers home was sold at foreclosure auction while still waiting to get response as to if he would better qualify for a reinstatement or a modification. WF reverted the loan back to themselves and then sold it to the VA. Auction was on the 1st of a month and VA got the deed on the 6th of the month. All this while WF was still in negotiation and a month and a half later later my father gets a letter stating that they were no longer working with him. That letter came after he had gotten a cash for key offer from the VA and questioned them and questioned WF. WF didn’t even have the deed that whole month and a half they had led him to believie he was going to b able to keep his home. He is an 80yo veteran and I have been fighting to help him keep his home and so far have had the courts rule in his favor on grounds of wrongful foreclosure due to dual tracking and have avoided eviction. After a year theVA deeded the home back to WF and they have since restarted their eviction process by offering a cash for key offer. Still have a battle ahead but not giving up for my father to lose his home. Plz let me know if a candidate for class action suit.