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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
I would very much like to join the class action. Wells Fargo put my wife and I through the ringer for nothing.
How can can I join the lawsuit from Ohio
Me too, I have ALL the paper work they have asked for in 2 years ,I am still being asked for more!!!!!! Who can I call??”
Have been going thru this sh*t with W/F for over three years. My job moved out of the country, and I took a new job, with a $6 a hour pay cut. Went thru their process four time, denied because of missing paperwork, did not get paperwork in fast enough, made too much money (behind by 6 months). Went to several workshops, spoke with several reps, forms foilled out, paperwork sent (my file must by now be over two feet thick). Finally a rep sent our application to Freddie Mac/Fannie Mae, They approved our L/M had to make three months of payments on time (done). Was calling every two weeks, my rep never answered, ALWAYS ended up speaking with a different person. Our file was in review (why, my L/M was approved by Fannie Mae). I made note of every call, who I spoke with, time, date, what was discussed. I have the phone bills to prove the calls. Then yesterday, I get a letter from W/F stating that our L/M had been disapproved, been withdrawn at our request. I have a file of everything W/F ever sent me, every phone call for last three years, everything. Remember, Wells Fargo does not own your morgage, they are the server, they do not have the right to foreclose on you, because they do not own your mortgage. Call them, tell them you want copies of your loan documents. I found out recently Freddie Mac actually owns my loan. I am going to straight to them, and ty to work out a L/M with them. Go to Freddie Mac/Fannie Mae website, and find who has your loan, go straight to them. Request a new server (do not use BofA, Citibank, they are just as bad as W/F), (PNC is a great choice). I only want two more years here, then mama retires and we sell. Anyway, fight back, don’t give up. DUMP WELLS FARGO!!!!!
We went through the HAMP scam and are now trying to short sale. I am a social worker and fight for people’s rights every day and feel like I can’t fight this. This is because, Wells Fargo has taken my rights away.
I too am a victim of this scam. I was told that I could be modified. I was also told that I only had to make minimal payments during the review process, which followed a forebarance, only to be told after the 4 months it took for the review, that I had to bring the loan current of nearly 13k within 60 days or lose my home in foreclosure.
How does one get to join this lawsuit.
I too want to join the lawsuit if not too late. I am from Minnesota and contacted Wells Fargo to see what they could do for me because in July of last year Minnesota government shutdown.
Wells Fargo had me do an application for the HAMP program. Months went on and in November I was contacted to say that we were denied but that Wells Fargo was going to see what they could do. I was given a fax number and I faxed all of my paperwork back to them. Three weeks went by when I finally got a hold of my loan officer’s assistant. When I gave him the fax number that I was given he stated that it is not a reliable faxe number and I was told that they never received my paperwork.2 days later they sent my mortgage into foreclosure.
I found this site when checking to see if there were any suits against WF.
I fees SO SORRY for so many of you…it is incredible that so many are still suffering. Luckily we have worked our way out of it by the grace of god, but if it were not for the luck of both my wife and I finally getting decent jobs again after being laid off we would now be living in the street.
My wife and I earned well into 6 figures, and perfect credit. I made the bad decision to leave my job to start a new business. The business started off great and was breaking even within 6 months, and of course I had my wife’s 6 figure income to back up the business. We had invested nearly 100k into the business.
Then came the financial crisis and my business lost nearly 50% of our revenue that month and got steadily worse.
Then the worse case scenario happened…my wife’s company went into bankruptcy and they began laying off, and she was soon given notice. We went from 6 figure income, to ZERO in days. We spent a year trying to find work but nothing and we lived off of our savings. Finally a year later we had to make a decision to either default on Credit card payments or not make the mortgage payment any more as we were getting close to the depletion of our life long savings.
We defaulted on credit cards, some of which we used to start the business. AM EX, DISCOVER were relentless they would not negotiate and they sued us. We had no choice to settle with them using an attorney who luckily was able to negotiate a settlement under threat of declaring bankruptcy.
Finally we both obtained jobs but at half our income.
We knew we could survive if we just got a loan mod, and all we needed was refi from our present interest rate to the current 3% and that would have made us solvent.
At the same time we entered the loan mod program we had to deal with the suits with credit cards, and we told Wells Fargo that we needed to go behind a couple of payments in order to fund the settlements.
They told us that they cant advise us either way if it was ok to do so or not, but they said that any delinquencies would be rolled into the modification program. THey alos told us we were the perfect candidates, and that it would take between 60 and 90 days.
That is when the nightmare began. We constantly were sending paper work in…over and over and over again. They would claim they did not get it, yet we had proof they did. Then there was the times they said what was sent in was dated and they needed updates, or that in one case we simply did not check off a single box on the app, and now we had to totally redo the paperwork.
This went on for months, each time I would ask how much longer….and the answer 60 – 90 days. Eventually we were 9 MONTHS INTO THE PROCESS, and each month we would get behind a little more, because we had a 900$ month shortage in our household income to pay our bills. I kept pleading with them, showing them that if they would ONLY refi the two mortgages at the present rate, that would REDUCE our monthly payments by over $900 and make us TOTALLY SOLVENT!!! They kept saying just a little longer.
The other thing was we were assigned a specific person to contact for any issues during this process. BUT whenever you would call, or if they left you a message to call them, you could call back 5 times a day and leave a message, and you would not be able to reach that person for a week or more!
Finally in the 10th month after being told our application looked good and after being told that our file had finally gone over to the department who processes it, one week later I get a letter in the mail that simply said “were sorry but your modification has been denied due to you having too much income”
I WENT NUTS!!!! I come from a financial background, it was as clear as crystal that we had a shortfall and that it could be corrected with a simple refi at 3% interest without changing any other terms.
I called them and for perhaps the first time in 9 months they picked up the phone on the 3rd ring. I told them about the letter and they simply verified that there was NOTHING THEY CAN DO, and “by the way, you will need to call our collections department because your second mortgage is NOW IN DEFAULT and you need to pay it OFF”
I nearly threw up! I had been working for months with these people, they led me on for 10 months telling me we had a great file, I entered the Mod program on THEIR advice…and now they pull the rug from under my feet and DESTROY OUR CREDIT!
I would go on with the rest of the details but through a miracle NO THANKS TO THEM we were able with help from relatives to work our way out of this through a painful process.
But…..We have NEVER been treated so badly, and by such STUPID PEOPLE and LIARS who led us to believe that this process was legitimate.
I honestly believe that the whole program was either fraudulent or so ill conceived that it was doomed to fail and management MUST have known how bad it was.
My story…and I will pray for the rest of you who are still suffering.
I have been trying for 2 years to get a loan modification from Wells Fargo and have gotten everything from I make too much money to 90 days later that I did not make enough money.
When I lost my job, I called and begged the bank to be proactive with me so I would not fall behind, but it fell on deaf, stupid ears. I have tried to short sale my home when I still had good credit (over 720) but they truned down the short sale. 90 days later they turned me down again for a loan modification and they suggested I should consider a short sale.
I am still working with them to try for a modification, I have gotten help from my congressman, but even this has not resulted in any relief. I am getting ready to hire an attorney to assisit with the modification but I want to sue this bank so badly I am willing to travel to Washington DC to try and appear before the house banking committe.
Where are all the programs our president has said exisit and where is the money?
We sent from the Federal reserve 17.2 trillion dollars to Europe and China but not to us.
Guess who won;t be getting my vote this year.
I would also like to know how to join this lawsuit. I also applied for a loan modification back in May 2012 at which time I submitted all the required documents. I was told it by the specialist (April))that it would be processed in 30 to 60 days . Well, I call them in September because I didn’t hear from them after leaving several messages and they told me it was cancelled and that I would have to submit all the documents again! I asked what happened and they said the documents are old? I am foreclosure now trying to get it modified thru the foreclosure court with the help from a housing counselor. Please provide info on joining the lawsuit.