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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
I had home modification with Wells fargo.
reduce my loan payment for 3 months
and waiting for modification to go permanent.
After have been waiting for months.
All suddenly came with the large amount money balance,this bring my house down for forecloses.
I lost my house.
I want to join this Wells fargo law suit
Please send me information on how to join this law suit. They have put me through the same thing and now my home is upside down. Please any info will be helpful. Thank You
I was working for the modification department of hsbc when my ex-spouse informed me of her mortgage with this company after speaking with them they offered a modification she filled out the docs. waited and waited and waited , they state still being evaluated and on day 57 we called they stated she was denied I went bullestic told them that they were forcing her into foreclosure (at which time she would have to pay attorneys fees, My ex had 1 of the few properties that were not upside down) thats what some of these companies do the want the properties that are not upside down but will accept any arrangements when you are upside down.
Please send me information on how to join this lawsuit.
I forgot to say our home is in Pensylvania.
How can we get into a class action suiit against WElls Fargo/Wachovia/US Bank?
We have been trying to get a loan modification for over 6 months. They keep asking for the same documents over and over. I have been to court 4 times and each time it was contiuned becasue they claim they need such and such. HELP !! In addition I have had open heart surgery and this stress is killing me.
All of you that have commented here have suffered a lot. I had similar experiences with a different lender and and after two years of stress, filing ch13 and trying to modify, I ended up losing my job. Long story short..lost the house too. PLEASE contact the Office of the Attorney General (that is what is is called) for the state that you live in and see if there is any class-action suit available to join against WellsFargo Mortgage. They will know if there is and tell you what you need to do if there is a suit available to join. Also, as an FYI-the payments in these suits usually are not that much. So don’t get your hopes up.
I APPLIED FOR HOME MODIFICATION. THEY GAVE ME THREE MONTH TRIAL. AFTER THAT THEY GAVE ME A SIX MONTH TRAIL. THEY LOST MY APRIL PAYMENT AND SAID MY MORTGAGE WAS IN DEFAULT. I SENT THEM COPIES OF MY CANCELLED CHECK. THEY STILL SAID MY TRAIL WAS IN DEFAULT EVEN THOU THEY FOUND THE PAYMENT.THEY ARE NOW TRYING TO FORECLOSE ON MY PROPERTY EVEN THOU I HAVE NEVER MISSED A PAYMENT ON THE TRIAL NOR HAVE I MISSED A PAYMENT BEFORE THE TRAIL. SEEMS AS IF THIS WAS AS SETUP TO GET FREE MONEY FROM THE TRAIL AND STILL I AM STILL RESPONSIBLE FOR ALL BACK MORTGAGE PAYMENT. I HAVE CONTACTED THE ATTORNEY GENERAL OFFICE IN STATE. THEY NEED TO DO SOMETHING ABOUT WELLS FARGO. THIS BANK IS A FRAUD. HOW DO WE GET RID OF THEM AND ALL OTHER BANKS THAT ARE NOT FOR THE PEOPLE.
The sad truth is WF are just front men for there investors! and they do not haft to give you a loan mod! reguardless of what there front men say…I was 6 months into my vain loan mod attempt when i found this out! a nefarious bunch of rascals that ever walked the earth!! our only hope is that the pending class action in cal is successful! AND THEN THEY WILL GET THERE JUST DESERTS!!!
I live in Wenatchee WA. Wells Fargo stole my home too. We had to declare bankruptcy in 2007 because of medical bills, but had ALWAYS paid our mortgage on time. In 2010, my husband lost his job and I went right away to Wells Fargo to tell them what happened. I immediately was told to pay as much as I could and to apply for a Home Modification.
Through the next several months I got all the paperwork and went through countless hours talking on the phone and jumping through their red tape hoops. I thought it was worth it to get my interest rate down to 2% from 8.5% and saving the hundreds of dollars a month and still stay in my home. In filling out the forms and writing the hardship letter, I specifically told them that although my Husband was now getting a retirement check, he worked 9 MONTHS out of the year as a substitute custodian at a school district. I had proof of it too.
To make a very long story short, Wells Fargo DID approve the Loan Modification, HOWEVER they calculated my husband’s supplemental income INCORRECTLY. The problem was that they multiplied the monthly supplemental income by 12 to get a HIGHER gross income, then divided by 12, instead of multiplying it by 9 and dividing it 12 to get an ACCURATE monthly income. They miscalculated enough that we were no longer “qualified” for a 2% loan but a 4.5% modification. We were still going to pay more than we could afford by about $300 monthly.
I quickly got on the phone and spoke to the person who was supposedly “helping” us. She was so rude and unhelpful. I explained to her that the miscalculation was not right and it needed to be re-done. She said “it’s set in stone. You can’t change it” and most horribly, “It’s not OUR problem that your husband is seasonal labor”. She was snotty about it and was completely ignoring my tears. When I asked about talking to the underwriters, she said that NO ONE talks to the underwriters and they don’t “even have phones”. WTH!!?? She said the only options were Foreclosure or Short-Sale. I tried to explain what good is it if they get less for the house if WE could pay it ALL off if the interest was lowered? She just said “It’s not our problem”.
I tried talking to other people in the short sale department and told them of the horrible treatment from this witch. While they were more sympathetic, they were no more helpful.
A few months, later, my house sold for $60K LESS than the amount of my original mortgage contract, and the people now in my house pay LESS than what I’m currently renting for now. I am heartbroken and may NEVER again have a home of my own. WELLS FARGO IS EVIL!!! and they didn’t even TRY to work with us and ACCURATELY depict our income.
My experience with Wells during this process is and was: The miscalculation was NO MISTAKE, but deliberate on there part. I am currently suing Wells on my own, but would love to participate in a class action too. The discovery process has uncovered deliberate number manipulation to not approve modifications. I live in the Seattle WA area. Because of the States involved, doesn’t this class action suit need to be United States VS Wells?
how can I join the suit
I too need to be apart of this suit…. Any infomation?
I would gladly participate in a class action against Wells Fargo. I’ve been going through hell with them for years! I could bring to the table…Harp and Hamp problems with Wells, HELOC problems, my mortgage was not on my credit report for years. They told me various times to sell my property or be delinquent on loan to qualify for a modification, I did that…they apologized for my mis-information, still no modification, refused subordinations. Its affecting my health, its that stressful!