Loan Modification Jury Trial Against Well Fargo

November 19, 2015 By

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.

 

Filed Under: Current Events, Loan Modifications, Mortgage Modification, Mortgage Refinance Tagged With: , , , , , , , ,

Wells Fargo Foreclosure Lawsuit

January 16, 2015 By

My client was offered a loan in 2007 by a broker who worked with Wells Fargo. His income at the time did not really support the loan, and he was hoping that the real estate would lift the value of his home. This, unfortunately, did not happen and over time, he was no longer able to keep up with his mortgage payments. As required by law, the bank sent a Notice of Intent to foreclose which notified my client how much he owed on the mortgage in order to make it current. Wells Fargo filed a Foreclosure lawsuit in Montgomery County Court of Common Pleas in 2010. I defended the lawsuit, and after motion practice and quite a bit of discovery, Wells Fargo withdrew the lawsuit. Three months later, however, Wells Fargo initiated a new lawsuit, again in the Montgomery County Court of Common Pleas.

Wells Fargo, however, did not send my client a new and updated Notice of Intent to foreclose before they filed the second lawsuit. After discovery, the bank filed a motion for summary judgment and the trial court granted the motion which gave the bank the right to foreclose. I argued that Wells fargo was required to send my client a new, updated Notice of Intent, and since they did not, then the foreclosure was unlawful.

I filed an appeal to the Pennsylvania Superior Court on the grounds that the lender was required to send an update Notice of intent before they filed a second lawsuit. Wells Fargo opposed the motion by claiming that it was nothing more than a formality and since the first Notice of Intent was sent, there was no need to send a revised one.

The Superior Court agreed with me and reversed the trial court’s order of summary judgment. Wells Fargo filed a motion for reconsideration which was denied on January 4th, 2015. I expect there will be an appeal to the Superior Court. The current status is Wells Fargo is attempting to take ownership of the home upon which they wrongfully foreclosed so I am considering filing a lawsuit against Wells Fargo to redress my client’s damages. -Michael Gaier

Contact Shaffer & Gaier

To schedule a free initial consultation, contact us online or call our foreclosure hotline at 855-289-1660. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

Filed Under: Current Events, Foreclosure Abuses, Foreclosure Defense, Wells Fargo Foreclosures Tagged With: , , , , , , , ,

Wells Fargo Sued for Mortgage Fraud and Mortgage Discrimination

April 5, 2014 By

It appears that Wells Fargo is being sued on both coasts for mortgage fraud or discrimination.  In the first case, filed in New York, Wells Fargo, the nation’s largest home mortgage lender, is accused of ignoring terms of a multi billion dollar settlement that was meant to resolve foreclosure abuse. This particular case is being heard in the U.S. District Court, Southern District of New York.

The lawsuit claims that Wells Fargo violated the rules of an agreement between Wells Fargo and five other big lenders and 49 state attorneys general. Evidently, the bank is accused of not reporting defective home loans to the government.

The West Coast case was filed in December of this past year. The Los Angeles city attorney has sued Wells Fargo and Citigroup, claiming that both organizations participated in mortgage discrimination, which led to a rash of home foreclosures in minority areas during the housing bust.

The lawsuits note that “vulnerable, under-served borrowers” who had been denied due to years of unlawful redlining practices leapt at the opportunity to purchase a home when it was possible to obtain a sub-prime home loan, even if they couldn’t afford it.

Contact Shaffer & Gaier: Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Mortgage Discrimination, Mortgage Fraud, Mortgage Lending, Mortgage Modification Tagged With: , , , , , , ,

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