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A class action lawsuit has been filed against Wells Fargo Bank by a customer who claims that the company miscalculated a mortgage modification, which led to the foreclosure of her home.
Tracy Dore states that she purchased her home in 2008 and subsequently entered into an agreement with the defendant to pay $500 a month as a mortgage payment.
She says her mortgage was guaranteed by a federal agency and a government sponsored entity was the servicer of the mortgage.
Dore claims that Wells Fargo was required to consider her for a mortgage loan modification based on the mortgage agreement and federal regulations.
In 2013-2014, the plaintiff reportedly lost her job and experienced economic hardship which resulted in her mortgage going into default. She then learned about possibly getting a mortgage loan modification through a federal program called Home Affordable Modification Program (HAMP), which was created in response to the subprime mortgage crisis of the late 2000s.
The Wells Fargo class action lawsuit states that the plaintiff applied for a HAMP mortgage modification via the defendant.
The plaintiff claims that HAMP utilizes a net present value (NPV) to figure out whether it would be beneficial to provide a mortgage modification or whether it would be better to continue with the present terms of the mortgage.
The defendant automatically calculated attorneys’ fees associated with a foreclosure as one part of the NPV calculation, the plaintiff alleges. However, Dore states that these calculations were not correct, which meant that hundreds of NPV calculations were not correct for loan modifications.
“Approximately 300 Class members continued to struggle with high mortgage payments that would have been lowered had Defendant correctly calculated their NPVs,” the Wells Fargo class action lawsuit argues.
“Due to this financial hardship, Class members have had to default on loans, take out additional, high interest loans, sell property, and/or file for bankruptcy.”
The plaintiff claims that if the defendant’s software was not faulty, or if the defendant had just used the government’s free software, her NPV calculation would have been different and she would have been accepted into HAMP.
Had she been approved for a mortgage loan modification, she would not have foreclosed on her home and would have been able to stay in her house, the plaintiff states. Dore claims that she was forced to find a new home and currently pays $1,000 in rent.
In July 2019, the plaintiff received a letter from Wells Fargo stating that her mortgage loan modification was erroneously calculated and that she should have been approved for a trial application under HAMP.
The letter that Wells Fargo sent to the plaintiff included a check for $24,700, which the defendant stated would “help make up for [Plaintiff’s] financial loss.” However, Dore claims that this payment is not enough to compensate for her significant losses.
“Defendant’s check is wholly insufficient to make up for Plaintiff’s financial loss, including the greater financial hardship she experienced when her mortgage loan modification was denied, the foreclosure and loss of her home, loss of value and equity in her home, and subsequent expense, defamation, and inconvenience,” the Wells Fargo class action lawsuit alleges.
A similar class action lawsuit was filed against Wells Fargo in February 2019 when plaintiffs claimed that they were denied a loan modification due to a software glitch.
Did you apply for a mortgage loan modification through Wells Fargo Bank? Leave a message in the comments section below.
The plaintiff is represented by D. Aaron Rihn of Rovert Peirce & Associates PC and Daniel C. Levin, Charles E. Schaffer and Nicholas J. Elia of Levin Sedran Berman LLP
The Wells Fargo Loan Modification Class Action Lawsuit is Tracy Dore v. Wells Fargo Bank NA, Case No. 2:19-cv-01601, in the U.S. District Court for the Western District of Pennsylvania.
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126 thoughts onWells Fargo Class Action Says Faulty Math Lost Home
They did the same to me causing me to lose my home! I would NEVER, EVER use Wells Fargo again for anything.
I was told I would get a modification and not make a payment. As soon as I did that they said I was denied and started foreclosure. I should at half the value to avoid foreclosure and they even fought that and for awhile refused to give payoff amount. Please add me.
I would like to participate in this Class Action lawsuit. I started a Loan Modification application with Wells Fargo in 2009 it took them until 2016 to perform a Loan Modification and at that point, the Modification was $300 more than the payments than what they were prior to the modification.
In 2016, we had a fire in our home. It took them over 8 months to release funds to us to complete repairs. We ended up running out of funds to cover our living expenses due to continuing to pay for our home mortgage and another place to live while our home was being repaired. Despite informing Wells Fargo of this on a continuous basis they continued to send disbursements in small payments that delayed the completion of our home. Consequently, we fell short on making our payments and requested a loan modification. Wells Fargo continued to act as though they were working with us. Their underwriting team continued to calculate the same information disapproving of us for a modification even though we sent updated income information. We were eventually foreclosed on based upon erroneous information.
Not only did I lose my home, any equity, credit score…I also lost my VA loan eligibility to use in the future!
I did go through 2 loan modifications with Wells Fargo and was charged attorney fees each time very high amounts.. Also about 10,000 was added to our loan each modification. They told me I needed to go into default each time also by a couple months…
I had a similar problem with them
I was denied a loan modification when both my ex-husband and I were together and suffered a hardship. I was very open and honest with them and was practically on the phone every day to them. I was told there was nothing they could do except for foreclose on the property. It was so very embarrassing and it has had ripple affects that I am still feeling today. This caused me to get a divorce, file for bankruptcy and continue to struggle because of the amount of debt that I incurred. Plus, this doesn’t even touch the emotional toll it has taken on everyone in my family. I will never, ever do business with WF again.
I applied for a Wells Fargo modification and Was approved . Later in the week they sent me another letter stating that I was denied as a result of a computer glitch .
They claimed to have foreclosed on the property in 2013 but it was still in my name in 2015.
I would like to sign up
The loan modifications did not go through the first time and I had to sell my house after short sale
Now the houses are going for $240,000 I owed $98,000. They took my life savings