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A federal judge in California has certified a national Class of Wells Fargo mortgage customers who claim the bank denied them mortgage modifications, despite meeting the requirements for the Home Affordable Modification Program (HAMP.)
Numerous plaintiffs filed this class action lawsuit in December 2018, claiming they lost their homes to foreclosure after they were unfairly denied the loan modifications.
They allege that a calculation error by Wells Fargo caused certain fees to be misstated, which resulted in incorrect loan denials.
The judge rejected a proposed subclass of homeowners but decided that the court will look into the value of the equity lost by each homeowner on a nationwide Class basis.
“Losing your home through a foreclosure is one of the most disruptive events that you could experience,” the plaintiffs state in their Wells Fargo class action lawsuit.
The plaintiffs argue that Congress set aside $50 billion in funding for HAMP, which was created to make sure people were able to keep their homes and provide stability to homeowners during dark economic times.
The Wells Fargo class action lawsuit claims that the defendant accepted $6.4 billion in HAMP funding and developed its own tool to calculate the eligibility of the borrowers.
The bank admitted that their tool miscalculated the claims which led to more than 870 borrowers to be denied HAMP money, even though they qualified for the modification program, according to the plaintiffs
The bank also admits that it foreclosed on 545 borrowers who should have been granted HAMP funding.
Plaintiff Alicia Hernandez claims her house was foreclosed, although she should have qualified for a loan modification program under HAMP. She alleges the bank sent her a check for $15,000, which informed her of the bank miscalculation error denying her the loan modification.
The plaintiff claims that the check was accompanied by a letter explaining how Wells Fargo determined the amount of the check and assured her that the amount should “make things right.”
The judge in his order states that other plaintiffs, notably Debora Granja and Sandra Campos, are typical of the proposed Class. The court notes that Granja signed a Fannie Mae/Freddie Mac contract and Campos signed a Federal Housing Administration (FHA) mortgage contract.
The judge notes they were harmed when Wells Fargo did not tell them that they could fix a default on their homes with a HAMP loan modification, and then foreclosed on their homes.
The judge certified the following nationwide Class: “All persons in the United States who between 2010 and 2018 (i) qualified for a home loan modification or repayment plan pursuant to the requirements of government-sponsored enterprises (such as Fannie Mae and Freddie Mac), the Federal Housing Administration (FHA), the U.S. Department of Treasury’s Home Affordable Modification Program (HAMP); (ii) were not offered a home loan modification or repayment plan by Wells Fargo due to excessive attorney’s fees being included in the loan modification decision process; and (iii) whose home Wells Fargo sold in foreclosure.”
The complaint alleges breach of contract, intentional infliction of emotional distress, violation of California’s Homeowners Bill of Rights, and violation of California’s unfair competition law.
Do you have a mortgage through Wells Fargo? Leave a message in the comments section below.
The plaintiffs are represented by Michael L. Schrag, Joshua J. Bloomfield and Linda P. Lam of Gibbs Law Group LLP and Richard M. Paul III, Ashlea G. Schwarz and Laura C. Fellows of Paul LLP.
The Wells Fargo Mortgage Class Action Lawsuit is Hernandez, et al. v. Wells Fargo Bank NA, et al., Case No. 3:18-cv-07354, in the U.S. District Court for the Northern District of California.
UPDATE: On March 19, 2020, a judge rejected Wells Fargo’s effort to stay a class action lawsuit, saying the bank did not notify some borrowers about mortgage modification options.
UPDATE 2: May 2020, the Wells Fargo mortgage class action settlement is now open. Click here to file a claim.
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88 thoughts onWells Fargo Wrongful Foreclosure Class Action Lawsuit Gets Certified
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I was also foreclosed on by Wells Fargo after 3 declined modification requests. I was not aware of the HAMP option. I was issued a 30 day eviction notice and my $140,000 home was sold at auction for $25,000. Please include me in the lawsuit.
I had a loan with Wells Fargo on a house and 10 acres. After my wife ran me off, she got another loan(without my signature) on the 60 acres that was clear of any loans. She then borrowed money on 60 acres from Wells Fargo. My name was on the deed and I don’t know how they loaned on it without my knowledge or even having to sign anything. I knew they were going to foreclose on the house, but I still don’t know how they took the land that had no lean on it. If it had a lean how did it get on it without my input, or signature.
I had a mortgage with Wells Fargo. I was trying desperately to get the bank to work with me. I would send paperwork and they would inform me that I had missing paperwork or some nonsense. I had 2
seasoned Real Estate Agents working with me. They could not believe the way I was treated by Wells Fargo. I eventually lost my home in August 2014. I lost my job with a major Fortune 500 company in 2008
Please contact us
I know when everything is said and done
Wells Fargo will give everyone $20 as good faith Money just like when the charge you to more time times for a NSF
Our home was foreclosed February 2012 AFTER a refinance was approved By Wells Fargo and the new payments were being made. We had missed 0 payments when we received the letter of foreclosure.
The foreclosure was for the RETIRED mortgage not the current mortgage. We hired two different law firms. We fought for more than 10 months losing thousands in legal fees and eventually lost our home to foreclosure anyway.
The lost equity alone was enormous. We were 7 years into a 20 year mortgage. The value of the same house today is close to 300% of what we purchased it for in 2004.
We were forced to move 90 miles outside of our DMA because we had no cash reserves after legal fees and no credit. As a result we lost 60-75% of our business gross sales between 2012-2014.
Our credit is still a wreck. We have been working to rebuild our business but it has been slow growing back to the same level.
We chose to lease a home so we could move back and live in the same neighborhood. We pay $500 more per month to lease than we were paying on our mortgage. The lease house is 1/3 the size of what we originally built only 4 blocks away.
Our home would have been paid off in less than three years.
How do i get in on this lawsuit? My house foreclosed May 2010. Y
My childrens lives were forever changed due to them stealing my home.
Wells Fargo did not allow us the HAMP option. They instead increased our payment by $500 monthly. We lost the house.
My home was foreclosed on, March 2009. My husband had just passed away December 10, 2008, and I was unable to access any funds until I received a death certificate. I didn’t receive a death certificate until April 2009, by which time Wells Fargo had already issued an eviction notice to me on our home.
No one spoke to me or asked me about anything to try and save my home.
I would like further information regarding this class action.
I would like to learn more about this.Please contact me.We were forced into foreclosure in 2014 by Wells Fargo. We were told they made more money by foreclosure than doing a short sale.
Our home is under Wells Fargo and we were told we didn’t qualify for modification,we have a Freddie Mac mortgage,include us for this class action.