Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
Read More Lawsuit & Settlement News:
‘U-Dream Life’ Sleep-Aid Caused Heart Attack, Class Action Says
LifeLabs Class Action Filed Over Massive Data Breach
Asbestos Mesothelioma May Develop From Limited Exposure, Says BMJ Case Report
Parents Say Baby Suffered Brain Injury at Birth Due to Delayed C-Section
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
88 thoughts onWells Fargo Wrongful Foreclosure Class Action Lawsuit Gets Certified
I’m happy to see I am not alone in my quest for restitution.
My home was foreclosed on by BOfA in 2010 and all the bullshit of the loan modifications, losing the paperwork, resending it, missing house payments I sent in and never posting and telling me confusion when BOfA took over that’s why payments not posting timely.
I have never recovered, got layed off right about same time, I was out on medical due to work injury, spent my retirement trying to save my home, I owned for 20 years.
It’s all very sad and has changed whom I am, I am not that happy go lucky person who smiled all the time, I am a depressed soul and feel very lost.
I always hope for a reprieve somehow, just so unfair and Wrong !!.
So after reading Im glad I still have company and people are still wanting restitution. I thought I was the only one still allowing this to weigh heavy on me. My story a lot more involved but that was the short version.
I know this is Wells Fargo stories, my story is the result of BOfA.
If anyone has info regarding lawsuits or any other pertinent info I would appreciate a reply.
Thank you and good luck to all.
Blessings.
Hello, who do we go to to enter the lawsuit, i also was denied the mtrg modification, when i was told i did quilify. Ever since then i have not been able to get back in my feet.. do you have any information in regards of the class action suit?
I share so many similarities with many of these stories. I am currently in the second attempt at re-modifying my home equity mortgage and the “paperwork” keeps getting mislaid or actions go undone with a foreclosure sitting in the background. I am sitting on hold with the Home Preservation Specialist as I type this… I would love to join this suite!
I applied for a mortgage modification in 2010 and supplied the request documentation that showed I was qualified. The modification was not granted and Wels Fargo foreclosed in early 2011
Hello, who do we go to to enter the lawsuit, i also was denied the mtrg modification, when i was told i did quilify. Ever since then i have not been able to get back in my feet.. do you have any information in regards of the class action suit?
I have been applying for a loan modification for 3 years with Wells Fargo. They first went to foreclose on me while I was making mortgage payments and they were excepting them. I have been trying to do a modification always missing paperwork. After each modification I receive word from Wells Fargo I have a new Loan Servicer and have to start the process all over again. I have now had 5 different Loan Servicers for Wells Fargo and all along they keep trying to foreclose on me. Well now they won their judgement and still I am trying for a modification. I have a 6.9% interest rate which was part of the Predatory Loan Settlement and they were to grant loan modifications. Well I never got one and still do not. Now with all the fees and not excepting mortgage payments I own twice what I purchased my home for. I keep hiring attorneys and all they do is take money and accomplish nothing. I hired loan modification professionals and another nothing accomplished. I do not even know where to go any more for help. Does no one really do what they say they are going to do any more??? I need help. Why is Wells Fargo getting away with all of what they are doing to people with these predatory mortgages. I have had this mortgage 24 years when it was Wells Fargo Financial. That was a racket.
I lost my house as well. They put the house up for auction and a day before the auction they sold it. I had until the next day to pay up my late fees
We were declined for the HAMP loan through Wells Fargo after they told us we qualified for it. We had just lost our business so our income went from comfortable to zero. It took more than 6 months just to have them tell us we were denied. While we were waiting to see if they could get us a different loan modification they foreclosed on us. We filed bankruptcy to stop the sale. They finally sent us loan modification papers but left the sale date on postponement on our house. We had little time to look them over and ask questions. The problem was I couldn’t get any answers. Got the run around and no straight answers. One guy got fired for finding us a loan outside of Wells Fargo. Couldn’t tell me what kind of loan it was. We either sign the papers or they were going to sell our home on the court house steps! So signed the papers and was not forgiven for anything, tacked 56,000.00 dollars to our loan and turned it into a 40 yr. Loan. I complained to our president because we did another loan modification and right out of the gate we were a payment behind. I called them and asked how is this a fresh start? So I wrote the president. Next thing I know we are getting a call from Wells Fargo executive services, there was a third party complaint put in on our loan. I received a letter stating that they would have report out to us soon. Never heard anything. Next thing I know we are making our house payment to another company! I think they figured out they screwed up and got rid of us. This is the short version of the story that Wells Fargo put us through. Any advice would be greatly appreciated
In 2011 we lost our home purchased in 2008 through Wells Fargo. It was a devstating turn that our family has never recovered from. I am trying to determine if there is any hope for restitution. I know there were modifications to the loan and other measures taken in attempt to save our home.
Unfortunatly my now Ex-husband handled all of that and I am unsure as to what happened precisely. He has all of the paperwork still and is supportive of my quest, he has no idea where to start either.
It’s all much more than I can comprehend and would appreciate greatly anyone who could shed more light on the subject.
I was also foreclosures on after trying 3 times for modification was told each month that I applied that my loan had to be behind at time I was up to date and struggling to make payments but told I had to be behind so I missed 1 payment and resent application was told that it had to be in arrears so I missed 2nd payment resent application and was told that it must be in collections so I missed 3rd payment and resent application at this time they foreclosed on house. I was up to date and making house payments even though I was struggling to do so. And after following their advice trying to get modification they foreclosed on loan.
This is similar to what happened to us. We where told we had to be 4 to 6 months behind to refinance. Our house has flooded and was remodeling via out homeowners and the bank still had 16,000 of our remodel money when they foreclosures on us out of no where. No notice, no phone call no letter. And we had our personal accounts and business accounts with them at the time. They knew exactly how to contact us and never tried. I would love to find an attorney to start another class action.
Wells Fargo foreclosed on my home as well. Originally one of the reps was processing the modification and she stated that the past due amount could be put on the end. Suddenly she was replaced with a nasty person who was not willing to help me at all. So many things were going on at that time my family experienced several deaths ( my mother’s death was the worst) working jobs just to provide food, utilities and gas to get to work., ( just to name a few of the problems). Everything that could go wrong happened. What’s funny is they gave me a check for approximately $3,500 to move out it I cleaned the home and I only owed $4,800(?). I asked if they could apply the $3,500 towards the balance owed so that I won’t uproot my daughter with all of the things going on. I did get a job 1 month after my home was foreclosed on, but of course it was too late to reverse the foreclosure.