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
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