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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
I have been denied a mod through Wells Fargo and almost lost our home, me and my husband had to barely intercede them and file for Bankruptcy, some type of way Wells Fargo paid off the money that we owed them in the Bankruptcy and came after us to and our attorney did not even have knowledge that Wells Fargo had did this. We had to go back to court and fight Wells Fargo tooth and nails they had done something underhand to get our home and last year they told us we have no equity in our home which we have been paying high mortgage for over 20 years.
I’m really not surprised these details are finally coming out. The structure of the loan modifications set fourth by our government gave hope to families in need. We had struggled for years while our family was growing to keep up with our mortgage. During this great recession my wife as an RN had her hours cut by the hospital as they mandated there staff to go home if they had low census. Through these few years of struggle and watching your neighborhood slowly leave there homes, we too weren’t left with much value in our house while our debt was rising. Our debt was rising because we could no longer recover keeping up without getting a loan modification. In 2014 we applied for a short sale with wells fargo as we met all of the guidelines with our only hope to start new somewhere else. For over a year I would have to resubmit docs as their staff would constantly lose docs and not return calls. I did everything right. I had the house sold for almost 50K more then what it foreclosed for. I’m guessing they would calculate the numbers based on what would continue making them money instead of really supporting the customers that needed it. We lived in the house for 10 years. I had fixed just about every issue with our little brick house. Well they blew it down. It’s been 5 years since. I could go on and on how that time almost killed me emotionally. It’s not easy to explain to your children as a father that you are struggling, and I eventually needed to seek help. They took my house, pride, and credit with them because of how they abused the process our government set fourth. They are the biggest mortgage lender in the world and should pay the price for cheating all of the victims affected. Seriously value 10 years in a house lost!!! 5 years of struggle and put a number on it. They should feel the effects as much as we did!
Lost my home in 2012, due to Wells Fargo not doing the home modification. My Ex-husband could not pay child support for about 6 months for being off of work sick and then I lost all bonus in 2012 due to the company I worked for was not doing good that year. I ended up losing my job and Wells Fargo made me lose my home of 13 years. They mailed me a check for $300 for the damages caused in my life.
lost my home in 2011 to wells fargo please add me
same thing happened to me.
I had applied for no.e mod from them and was denied because they said I didn’t .make enough of money I not only lost my home but also the reason for applying was my husband passed away he passed away in 2008 and tryed in everything to keep it I was never sent any papers until it all started they left a note and said it was abandoned I still had electricity at that time in the home. I even tryed to get it refinanced they said no because I had been 1 day late and I called them to tell the reason why I would be late and they cared about was the money and the reason I called to tell was because my first husband had just passed away and I was trying to get things I done he had passed away the week prior to me calling.I could not get any help from them at all so therefore I had to let it go.
I got sick in 2008 and was out on disability from my job of 20 years. I got behind in my bills. I applied for a home modification in 2008. It was when the home modifications were first offered. I was in the approval process and the foreclosure kept moving forward. During this time you just had to wait. You had no point of contact. I was called with a denial 5 days before the foreclosure date. In a panic I closed my 401k to pay the back money owed. This was a horrible time and I ended up having to file bankruptcy because of the lack of concern or attention paid to my case in the modification process with Wells Fargo. I am 60 now and do not have a retirement account. Wells Fargo sent me the $6,000 which doesn’t even touch the damage they did to me personally.
I was also treated unfairly when pursuing HAMP modification. Was making a reduced payment while waiting for approval. Told the HAMP servicer would stay in contact with wells Fargo….something went South and my home of 12 years was foreclosed upon after only 6 months of payment troubles. Had 12 days to find a new place to live and move. How did I not have any equity? Thieves!
Those ppl not only caused my home and I about lost my mind!
Add me
I was denied a loan modification under the federal program in 2012. Wells Fargo is a bunch of thieves and imbeciles.