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A 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
Promised modification after making timely payments still denied modification with the hamp program
Wells Fargo misrepresented information regarding my situation to obtain a loan modification in the state of Alabama. As a result I lost most everything and ending up short sale just before foreclosure.
Twice I was promised loan modification and send down the path of deception. I have full documentation.
Never missed payment since W/F bought mortgage city over valued home by 80000 taxes went up payment went up sent regular payment oops wrong amount we don’t accept partial payment.how do I get in on lawsuit
I want justice to. Wells Fargo submitted false document’s and foreclosed on me. I had 5 years remaining on a 30 year note
We originated our Wells Fargo loan, March of 2006, interest only 10/20 loan. We did everything right, purchased below appraised value, put 20% down of our own money. We were told we would be able to streamline into a fixed 30 year at any time as long as we made our payment and keep good credit scores. We have always made our payments on time for 10 years and had high 700 to 800 credit score. Starting in 2008, we attempted to refinance to a fixed mortgage rate. But with the collapse of the housing market our house was worth about half what it was in 2006, making it impossible to appraise above the owed amount. With that we couldn’t sell it and no other mortgage company would refinance us with a property worth less then we owe. That left us with only being able to work with Wells Fargo. At which point we contacted Wells Fargo in attempts to do a streamline refinance, to change, modification or to convert our mortgage to a fix rate at current rates. We have made several attempts every year since then. Right up until February and again in April of 2016, to work something out with Wells Fargo. To no withal, we have not been able to obtain a modification or refinance, all request for help have been denied on all accounts. Told over and over, are payments are current and we can afford our current mortgage payment as the reason for denials for refinance and modifications.
Do to my health I lost my job in April of 2016, coupled with our interest only mortgage maturing in June our payment jumping from $2768 to $3786. We , As much as we would love to stay in our home and retire here, our continuing financial struggles and both our health declining makes it so we cannot sustain a home mortgage of $3786 to Wells Fargo. In June, we missed our first payment to Wells Fargo and applied for modification, which Wells Fargo denied; we appealed and they denied that, saying we could afford the $3786 mortgage payment and that should come first.
Wells Fargo pushed us into either going to foreclosure or Short sale our home. Well, short sale it is, they have accepted an offer $130,000 below what we owe on our mortgage. I feel like our house was just stolen right out from under our feet. We have lost our $120,000 down payment and another $80,000 in first year renovations.
We have been told over and over that HARP and Modification were set up to help owners just like us but they haven’t down one thing for us or in our best interest.
We sincerely appreciate your understanding and help in this matter. If there is anything further you should need from us, please contact me personally.
WF called us and were congratulations you are qualified for a mortgage modification we are going to be lowing your interest rate and saving you so much money yada yada. Turns out it was a HAMP, well we applied qualified then they tell us we need to stop paying our mortgage even though we had never missed a payment or ever been late on a payment. We were nervous about it but luckily we held onto the two mortgage payments they told us to skip, we got the trial payments and made the 6 payments they requested, but then they sent us a letter telling us that we had been denied because our mortgage had pool insurance placed on it. I questioned that as we did not have pool insurance and they claimed Freddie Mac added pool insurance to our mortgage. I contacted Freddie Mac and turns out they did not even hold our mortgage Fannie Mae did, upon contacting Fannie Mae they told me my mortgage did not have pool insurance, and that was an excuse that Wells Fargo was using a lot to disqualify people. When I called Wells Fargo back they hung up on me then sent me a letter stating because we were behind on our mortgage the two payments they told us to skip, we were now in default and they determined we could not afford the modification payment even though we paid them all on time and had been paying nearly $200 more for our normal mortgage payment. Furthermore they told us we had 12 days to catch up on our mortgage or they would start a foreclosure. I immediately paid the mortgage up to date, only to be informed we were behind 6 months. On looking into my escrow it quickly became obvious that Wells Fargo had been taking my money but for 6 months had applied none of it to my mortgage. To add insult to injury they required a certified letter requesting they take my money they had stolen and actually apply it back to my mortgage.
Lots of helpful suggestions and similar comments on Facebook pages “We Declare War on Wells Fargo,” and “I Hate Wells Fargo.”
My story is the same with Wells Fargo. Trail periods whole nine yards. They have Forclosured & brought my house back at Sheriff sale. I also would like to know who to get in to the class action lawsuit.
How do I become a member of this class action? (Wells Fargo Mortgage Modification Class Action Lawsuit )Wells Fargo was my mortgage company and they took me through the Phony modification process before foreclosing on my home!
Wells Fargo was unwilling to work with me to bring my mortgage up to date. Once I went to court, they told me I would need $ to bring my mortgage current. I paid it and later learned that eight of the were double payments. Payments from March 2008-October 2008 are double payments of $ plus they have included fees and other monies that goes all the way back to 2001, I don’t know anything about these fees! nor do they have anything to do with the foreclosure process. I was told if I did not pay this entire amount I would not be able to save my home. Payments were made. I have all my letters to them!
Wells Fargo has destroyed a many families because of their business practices!
After all that (bankruptcy, fake modification, over payments/double payments) they still foreclosed on my home.
Please let me know if I can be included in this class action? Thank you!
I want in on an additional class action lawsuit concerning WF, state has already sued them but they continue their unethical antics. Ive been through the misplaced docs, resubmission of financials etc… Ive even gotten a lawyer… I have also recently contacted the AG in my state. I am a taxpaying citizen… our dollars bailed them out, now its time for them to have compassion on us.