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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
WOW! uation is somewhat different, they told me the loan I signed was the temporary 3 mo. loan, and when I contacted them back in 3 months, they had no record. When I gave them the date of the telephone call where I was told this, they denied the call. When I subpoenaed the phone records and it showed we talked for 2 hours on the date, they saud “oh well”. When I filed with the Office of the Comptroller of the Currentcy and presented all this information I had record of. I received a call from the Wells corporate offices and was strung along for 2 months. When the smoke cleared, after I appealed the first decision. I was told by a Treasury Department investigator in Dallas TX that they only worked on procedural issues with making loans, and if I had a dispute of fact, i would have to prove it in court. If anyone is willing to organize in their area, we should come together. No one can ignore hundreds of complaint letters from dozens of communities. My phone is not listed, but you can find me on LinkedIn. Contact me if you want to start something that will bring those lying cheating subhumans to justice. There are a lot of us, and we just need to stand shoulder to shoulder…
Its nice to know that I am not alone, referring to the comments on this site. Trouble is, there seems to be no one listening. I contacted a national law firm, and they said they would see to it that I got a loan modification, if I would pay them a huge chunk of money. I don’t have ANY money, that is why I am in this predicament in the first place. It seems to me that there should be an attorney willing to file this class action lawsuit, but I guess they are satisfied to suck us dry by offering to help for a fee, In other words, selfishly taking advantage of people about to lose their homes, for a profit. Shame on them.
I have been trying to get a loan modification since October of 2010. My husband and I fell behind about two months on our 1st mortgage but kept up our second mortgage. In November of 2010 we started the process of filing for Bankruptcy. We decided to do it because we didn’t want to loose our home. Our attorney was able to make it so that our late payments and fees on our mortgage and all the other debt we owed would be included together in our bankruptcy payment. I know people don’t want to file for bankruptcy but that may be the only way to save your house if this option is still open to you. At the same time we have still tried to do the modification so that when we come out of bankruptcy that our payments are lower and affordable for us. We are getting the same run around as everyone else and I am interested in this class action law suit as well. Wells Fargo should not be allowed to give it’s clients the run around and send them running in circles filling out numerous sets of paperwork spending money and time they don’t have to sped this paperwork. Then the paperwork is sent or faxed back to Wells Fargo and they are saying stuff is missing. My husband works for Fedex and checked that it was delivered and it had been but because it hadn’t been scanned into the system the lady tells me she will contact the central receiving address and ask them to put it into the system and and if they don’t she will have to send me more forms. I contacted my lawyer and am waiting to here from my lawyer. I don’t know if my bankruptcy lawyer can do anything but if not and I have any recourse through this class action I certainly want in.
We have been trying to get a loan mod since early 2011,wells fargo asked for all the docs they wanted,and we quickly complied,and months went by with out an answer,even with my constant badgering.
Finally,I bothered them so much,they said send all that stuff in again because now its to old,so we did it again ,and once again,they just drug their asses.its all smoke and mirrors,lies and complete
Bullcrap,they have nooo intention of even remotely trying to help any homeowner,and with the laws that have been passed to make sure that doesnt happen,its criminal on their part.they filed for a hearing,went in front of a Palm beach judge,a judge lewis,female judge,and forclosed on us,and auctioned our house right out from under us.its no wonder people wig out and kill attorneys,judges,and bankers,all they give a crap about are themselves.nobody wants to be in this morass,and that includes me.where is all the money from these banks that have lost the lawsuits over this very thing,now im in a nasty predicament,haveoto move out of my house fast,cant find another house to rent in my area.this sucks,wells fargo sucks,and my attorney sucks.
Mr. Harris they did the same thing to my sister while we were on vacation they sold her house while she was still in it. she waiting on a loan modification and they sold it 3 months before they evicted her…Something needs to be done
I have the same problem…Donald has….2 names…?…what is that….how can they do that…?…:(….I have been faxing the same things to them for 3 months…..and they seem to always be missing something….and they have closed my loan mod twice…!…its a joke…I feel they dont care…because…they already got bailed out….and..its not there house….so…they really dont care:(….so…can we really get help here…???..I would really like to know….because I just got a Trustee’s sale letter this morning @ 3am…yep…3 AM…they r snakes…..
Wells Fargo is a fraud they pull you in to make you believe they will help and after multiple times of sending in documents they claim there is nothing they can do. This is one bank that should be shut down. They are a disgrace and the Banking Dept. should get involved.
I am in New York and want o know if anyone is having the same problems here
I have trying to get my mom a loan modification for over a year now. My dad died 3 years ago and her social security doesn’t even cover her mortgage payment. I keep getting told that the loan is going to the underwriters and then I get a letter stating the loan specialist has changed and more information is needed or the form that has been sent has expired. Lots of lip service no action! How corrupt can you get!? The repeative statement of “This is and attempt to collect a debt and any information collected will be used for this purpose “. They deglect to state that its their only purpose. Track your income!
I would like to speak to someone about Wells Fargo modification program. They have been string me along for years now, every time I get to the end they cancel me so then I have to start all over. My loan specialist I found out has 2-names. Right now I am in court they are trying to forclose on me. Please contact me if their is steps I can take.
They have done the same thing to us. They gave us a temporary forbearance. We made the payments on time. Then they foreclosed on us we fought with them for almost two years. We also had to file for bankruptcy. They have since given us a modification, but they have added an addtional 25,000.00 to the mortgage. We know that this is not right. We would like to know who to contact about this lawsuit, because we know that we are being cheated out of our money.
Hi- I’m curious to know what happened between the time you made the last payment under the forbearance and when Wells Fargo actually foreclosed on the home Did they foreclose on the home immediately after the last payment you made on time under the forbearance or was there a period of nonpayment due the increase that occurred after the forberance ended? I’m considering filing for forbearance but want to fully understand what it could mean in the longrun. Thanks.
I am from Kansas and just got off the phone with Wells Fargo. I complied with all of the terms of the loan forebearance and now the gentlemen is informing me that i have to provide additional documentation of income and expenses and there is a possibility that I could be foreclosed. My original mortgage payment was around 1,250 and according to the forebearance agreement they dropped it to 800 for a year. Now they want somewhere around 7,000 to make my loan current.prior to receiving a permanent loan modification. I am not certain if anyone is responding to the above post, but if someone is please contact me so that I can take the appropriate measures so that I do not lose my home to this bank. From what I have read, I am beginning to distrust their intentions when originally agreeing to this process.
I am in the same situation and looking for the right attorney. Does anyone have information on how to join this suit? We are in California