mortgage-fraud-justice

Class action lawsuit filed against Wells Fargo for illegal HAMP denial

October 31, 2011
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mortgage fraud justice served Class action lawsuit filed against Wells Fargo for illegal HAMP denial

Borrowers allegedly misled, defrauded

A new class action lawsuit against Wells Fargo claims that the bank illegally refused to grant permanent loan modifications promised to homeowners who successfully completed a trial mortgage modification under the Home Affordable Modification Program (HAMP). It was discovered that the $75 billion government funded program failed to grant permanent modifications nearly half of the time, which most consider a failure of the program which we have long called a colossal failure.

A new suit, filed in the U.S. District Court for the Northern District of California, has taken Wells Fargo to task for their role in failing to help the homeowners they and the government had promised those who successfully completed the trial would be granted. The suit claims that Wells Fargo violated California’s consumer protection laws by misrepresenting the terms of the HAMP trial period plans as well as breaches of contract.

As part of the plan, the suit alleges that Wells Fargo and borrowers agreed to a reduced mortgage payment for three months as a trial period to prove their ability to pay that new lowered amount, but despite that agreement, homeowners are claiming they were not granted a permanent loan modification, the entire point of the HAMP program.



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Anatomy of an allegedly illegal modification denial

According to lawyers representing the plaintiff, Amira Jackmon bought her home in 2005, lost value in her home when the market crashed and was unable to refinance after being laid off. Wells Fargo offered a loan modification if she could make all payments on time under HAMP requirements; they signed the agreement and she made all payments on time and was then instructed to make four more months of payments at that rate. After the trial period ended in 2010, Wells Fargo allegedly told her that her request for a permanent modification was denied and the foreclosure process began. Her home was sold at a trustee sale in May of 2011.

The lawsuit claims the trial program was “a ruse designed to induce consumers into sending payments to Wells Fargo, even when Wells Fargo knew that it had no intention of granting the permanent loan modification it promised.” The suit claims that Wells Fargo misled homeowners to the tune of several million dollars and they are seeking restitution of payments made and they seek to recover all other funds and property lost in connection with the alleged illegal activities of Wells Fargo.

“We will prove in court that Wells Fargo’s operations turned a program designed to help homeowners into a revenue stream for the bank,” the plaintiff’s lawyer said in a statement.

Tara Steele is the News Director at AgentGenius, covering real estate news, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, she frequently checks her email, simply click the link below.



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  • Haley

    Oh dear, what will they think of next?! This kind of story is why OWS makes so much sense to me…I just hope they get something accomplished out there. They need goals!

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  • denise

    I need to know about the wells Fargol lawsuit I believe I might be a part of it.
    Who would I contact?

  • Sedik

    I need contact name and number for Atty that is working on this case I have same situation. Please keep my name and email confidential.

  • http://cox Joveta Parker

    Wells fargo has done the same thing to me, I have all my paperwork to prove that they rec. all my documents to modifiy my loan . BUT they tried to use thier own tatics to by holding on to my paperwork for 5 months, asking for the same documents over and over again. there is so much more that i can prove that wells fargo has done . please keep me in, and formed I have contacted a lender who listen to my story and told me to contact an attorney i have not yet done so, I need to know who to call and how i can be a part of this CLASS ACTION LAW SUIT, the lender i spoke with also told me that i had grounds to sue Wells fargo for many things they did with my loan and modified, pls provide informTION ON who to contact for the lawsuit

    • Amy Jo

      Am going thru same S. with Wells FO now & wonder if you got any relief/help anywhere. you call me at home if feel like it 303.459.0566. I am ready to purchase assault weapons at this point & really don’t even have $$ for that… wondered if you got any help

  • usustarr

    Can some one tell me how to complain about Wells Fargo loan modification issues or how to join the class action law suite against them?

  • Donna

    someone help they but me in a bad situation and I need help before they take my home.

  • Donna

    I really need help,they misinformed me and now they will not let me make any payments.I need to get advise from someone trust worthy.I always paid my mortgage payments and now they want to take my house.

  • Donna

    Can some one tell me how to complain about Wells Fargo loan modification issues or how to join the class action law suite against them?

  • Donna

    did you find out who to contact please let me know

  • shelly

    I need to join this lawsuit! I’m in the middle of this loan modification nightmare! I have been doing everything they tell me to do and then they tell me it’s at the underwriters, when I call them a month later, they tell me it’s NOT at the underwriters! I’ve been screaming on the phone to them for giving me this nightmare! My next step is getting their MAIN financial address and going there PERSONALLY with all my documents and refuse to leave the building until they fix what they screwed up! I am not losing my house because they are frauds! I will fight tooth and nail! Did anyone get any information about this lawsuit?

  • Donna

    I agree how come no one is answering us on what do do this is a nightmare can not even sleep at night what can we do

  • Donna

    I have been on the phone almost every day and they are so laid back about about it I COULD CHOKE THEM!!!!!!!!!!!!!!!!!!! They put me in this situation and they do not care

    • shelly

      Just to let everyone know…I forced the Wells Fargo representatives into talking to me and forcing them to get moving on my load modification…I am also DOCUMENTING EVERY conversation, time, date, people! Also, when they tell you that you can’t make a payment, they are wrong! I flipped out on one of the head representatives and found out you can send a payment but by mail ONLY. I am going to go the extra mile and send it registered so they can’t say they didn’t get it! I also informed her of the lawsuits being filed against them! Of course they claim they don’t know about it…I told her to research it online! If they don’t have my documents to the underwriter’s by Monday, 4/9/12 I am taking time off from work to go to their main office in California and handcuffing myself to their office til they fix what they screwed up!

      Yelling and screaming at them seems to get you a little farther…so get on the phone and give them hell!

  • Donna

    Shelly,let me know how you make out I just sent an eamil to the CEO and 10 other head people.I told them if I do not get any response today I will be going to the media.Anyone out there that wants to join please respond

  • Donna

    Shelly contact the CEO,I just got a call from his office and they are taking over my case.I guess when I told them I would go to the news they woke up.I have the info if you need it.They are expediting it and will have answer in 3 days

  • shelly mountain

    So, did the CEO help any?

  • DONNA

    Well the day I emailed the letter I got a call within an hour from a girl in his office who said she would be taking over my case,She sent me 15 more pages to fill out that was never sent to me with the first set of paperwork. I told her I never recieved these papers before.She replied that when we take over and expidite the process we make sure you have everything you need.I told her that is just another log in the fire,all those papers should come to us customers all at once.Just a way for them to prolong the process and go back and forth.She has called me everyday and it is in underwriting.If I do not have any answers by next week I will be going to the media.Anyone that wants to join me let me know the more people the better.I will go to every news station and news paper I am not playing around.

    • shelly mountain

      I’m with you on that one! Keep me posted!

  • DONNA

    HOW ARE YOU DOING SHELLY HAVE YOU HAD ANY LUCK YET?

    • shelly mountain

      Had to do my taxes today so my next call to them will be tomorrow. I’m soooo looking forward to that! LOL How’s it going on your end?

  • donna

    well have not heard from them since thursday,called Friday and yesterday got voice mail left message.If I do not get a call by noon I will be sending the CEO another email.If this is not resolved by Friday I will be contacting all news stations and newspapers.They put me in this situation and I will not let them take my house.I am so peed off I could choke them.I can`t sleep right, worried all the time just waiting for those papers to come to my house.Let me know what happens today good luck

  • Kelly

    Shelly & Donna, I want to join this lawsuit, I have documented all the lies I was told over the phone and I have all the paperwiork I’ve sent in to “them”.

  • dani1984

    I DANIEL RODARTE WAS ALSO REFUSED A LOAN MODIFICATION NO PAPER WORK OR APPLICATION WAS REVIEWED EVEN THOUGH I LOST MY JOB WELLS FARGO DID NOT ATTEMPT TO HELP ME WITH MY HOME SITUATION.I WANT TO BE A PART OF THIS CLASS ACTION LAW SUIT 

  • Sunshine50

    Hi, SOS…HELP…….I have been denied once again today from Wells Fargo. I have been trying to get a loan modification since February of 2010, yes 2010. They have strung me along like a puppet. I have done every thing they asked me to do(even sold a $33,000 paid for van for a $5,000 ford focus). I was not even late when I went to them. I just wanted a modification due to a divorce and I am 100% disabled. I have been willing to find a job (currently on SSDI) but every month, I apply for their latest and greatest “Programs” I get denied.
    The HUD approved counselors I immediately went to in March 2010, said I can afford my home if they reduce the interest payment & make it a 40 yr loan. I agreed and have waited for them. Working full time for Wells Fargo Mortgage & filling out their forms, faxes, answering the phone, making calls and time on the phone. Every day, every week, every month….Not one day down.
    Today they (the “Office of Executive Complaints” said to go “Short Sale” my home or “just do a Deed in Lieu”. OMG. They are taking a home away from me and 3 or my 4 children, which I built so that if my Spinal Bifida does get worse (am parallelized 85% fm waist down) and I have go back into a wheelchair, this hse will work for me since everything is on one level for myself. My children would still be upstairs.  I am loosing the battle. My children and I have not slept right since February of 2010. We just want our home to stay our home, which I had built for us.
    If anyone has a suggestion out there, email me at deborahoz@usa.com . I appreciate this moment to vent.  I am in the State of Maryland. God knows how many more people Wells Fargo is pulling from their homes. Our foreclosure rate is increasing daily. What is Obama doing??? Anyone out there have an answer please tell me. I am so afraid of tomorrow. Freddie Mac owns me and Wells Fargo is my servicer. I am a minority (puerto rican, grandfather African American, a woman and disabled) I have put over 40 hrs a week into paperwork & faxes & calls for Wells Fargo Mortgage. Yes, I have already contacted the State’s Attorney Generals office about the class action suit. It does not apply to me since I am Freddie Mac owned. Now what??
     

  • Srbenoit56

    I was apart of this wells Fargo mess and I want justice I suffered pregnant for months

  • tntsmom

    My husband and I have been to h++ and back with Wells Fargo and it took TWO YEARS to get a modification and when we did our payment was $300 more a month than when we started. They have screwed our credit and I will go to any and all lengths to see justice done to them.  We now tried to refinance with them and have been in the process since July and was told today September 13th that they will not be able to refinance us because they now need 2 months of bank statements without NSF. We were set to close October 1st per the paperwork we received and again got SCREWED!!!

  • http://www.JABFINC.COM Pierre Antoine

    I’m Pierre R. Antoine.In 2007, I applied for a loan modification from Wells Fargo. At that I had good credit,but was struggling to make  my mortgage payments on time.As I never missed payments,I applied for loan modification. Upon to be qualified for, I was told to hold my mortgage payments up to six Months(6) My loan’s interest was 6.5% and Wells Fargo gave me an interest 5% after the loan modification was granted. In addition that, My home was on foreclosure, my credit score dropped and Had to pay  all of late charges for missing payments.Moreover, I had to put down a lump sums in order to qualified for a new loan. Now, as I owe more than what my home worth, I applied for a loan modification to lower my mortgage which is 920.00 dollars a month,was denied because I already had one previously.So, in my situation ,I want to do.Furthermore, my loan term was 15 years, and I had left 7 years to pay off, to me I’m also a victim fro Wells Fargo Home Mortgage.