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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
Yes, another unreal story. My was also foreclosed. Lost so much. Add me
I had to file bankruptcy after they foreclosed on my home to save my home. I attempted to modify and was denied. I spent thousands on an attorney trying to work with them to no avail. I finally gave up and filed bankruptcy.
I lost my home to foreclosure by Wells Fargo. They claim through multiple letters that my foreclosure was not part of the faulty math lawsuits and denied payoff. I have maintained all my documents through modification meetings and correspondences. I would appreciate some legal assistance in this matter. What personally hurt me, is that the foreclosure sale of my home, was nearly half of what I owed.
They did me wrong and caused me to lose my home.
Need info desparately
Need info
Similar experience
need info in wells fargo suit; similar circumstances
I lost 2 homes to wells Fargo evil
add me
Yes I did same scenario as many on here since my Nov was 180000 wanted me to sign a hamp over 300000
Wells Fargo foreclosed 2 properties in the consequent years 2009 & 2010. Initially I didn’t had the mortgage with Wells Fargo. In 2007 one of the Loan Officer from Wells Fargo invited me to do the Refinancing of the loan and told me you can get money out as a equity. At that time it was hard for me to understand the mortgage games. U=I went through a very much hardship when I lost my own Italian Restaurant in May 2009 and is that I lost my job as well. Lost house in July 2009 when they are promising that modification will be done and Foreclosure was couple of hours away. Wells Fargo kept promising that it will be postponed because you have submitted all documents.
The another property was foreclosed in 2010 when even they modified the loan and they send me the agreement to sign but had some mistakes on the agreement so they told me to send it back and we will send you the correct one, I send the documents back and kept waiting for the correct one but never received and the property was foreclosed. I wrote 2 times myself but their response was negative. I couldn’t hire an Attorney to fight my case. I have all the proof from Wells Fargo that the loan was modified in the second one. In 2009-2010 everything was a mess in the banking system. Loan modification were so much behind that No Body knew what was going on. Almost every month I had to submit the documents again and again. I definitely need some help in these matters.
Because of the hardship when I was unable to pay the mortgage and my checking and saving accounts were also with Wells Fargo. I received some money and unemployment check, as soon as I deposited in the checking account,Wells Fargo just took away everything without my permission.
I never can think of that Wells Fargo would do that kind of cheap attempt. It’s like a Cat and Mouse game. I had this money to pay some bills so all my checks bounced. They did that 2 times then finally I closed all my Accounts with Wells Fargo. This incidents were happen even before the Foreclosure.
Off course I have a proof of that too the money was taken away this way.