I just wrapped up a jury trial in New Jersey Federal Court against Wells Fargo. The litigation was lengthy and complicated and is hard to summarize in a blog. It was settled during closing arguments after A LOT of time and energy went into it—Wells Fargo, as usual, was represented by Reed Smith. In 2009, my clients were current with their mortgage, but asked Wells for a refinance. Instead they were pushed into applying for a loan modification so long as they paid an up-front fee of $2,415. One more thing—Wells said that they’d have to be delinquent in their mortgage to qualify (I’ve heard the same thing from many of my clients). My clients thought that sounded strange, but followed Wells’ representatives instructions. They paid the $2,415 application fee and stopped paying their loan.
Wells also told them, and then wrote to them, that the fee would be returned to them if the loan modification was denied. Which it was a few months later—but Wells never returned the money. Wells then confused my clients’ paperwork with others, but told my clients that they’d keep trying to get them a loan mod. While this was happening, Wells filed a foreclosure lawsuit against my clients, but didn’t even notify them of that important event until 2 months later. Wells eventually denied the loan modification, and then took a foreclosure judgment. Wells was lining the home up for Sheriff Sale when my clients retained me. I got Wells to hold up on the Sheriff Sale, and then I filed the federal court action for NJ Consumer Fraud for 1) not returning the $2,415 and 2) for foreclosing when they should’ve been working with my clients to modify their loan.
The end result was that Wells and my clients agreed to a modification and Wells agreed to pay a confidential sum of money to settle the case.
Avoid Foreclosure by Modifying Your Mortgage
When you hire us to help you with a loan modification, we will become your voice in all dealings with your lender. If we are unable to immediately get the process moving with loan or bank officers, we will work directly with attorneys for the bank to get the modification process moving forward. We have a comprehensive understanding of the programs available to help you refinance or restructure your loan and avoid foreclosure. We will carefully evaluate your circumstances to determine what programs you qualify for, and we will explain your options as well as the benefits and consequences of different strategies.
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To set up an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Your first consultation is free of charge. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.
