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Foreclosure and Loan Modification Blog

Wells Fargo's Negligence Leads to Wrongful Foreclosure Auction

Some homeowners do everything right, but mistakes by their bank cause them serious problems with their home. That's the case for a recent client of our firm who was approved for a trial loan modification, but her home was still sold at a foreclosure auction by Wells Fargo!

In August of 2016 a homeowner in Miami-Dade County, that I'll call Mrs. Thompson to protect her privacy, was approved for a HAMP trial loan modification by her lender, Wells Fargo. She had previously fallen behind on her payments, and being approved for a trial loan modification was exactly what she needed in order to avoid foreclosure and keep her home.

Normally being approved for a trial modification is the hard part about avoiding foreclosure because loan modification applications take a lot of work to complete and are frequently denied. But Mrs. Thompson was approved for a trial modification, so all she had to do was make her trial payments on time and move on with life, right? Not so fast.

Banks Still Dual-Tracking Despite Restrictions

Beginning in 2014, the Consumer Financial Protection Bureau (CFPB) established new rules to protect homeowners facing foreclosure from unnecessary expenses and surprises. Among the rules are restrictions on the mortgage servicer's ability to pursue foreclosure while reviewing your application for a loan modification, a practice known as dual-tracking.

About this Blog

Amerihope Alliance Legal Services is a leading loan modification and foreclosure defense law firm with attorneys licensed in 5 states. We have helped over 7,000 homeowners fight back and keep their homes.

Click to Read Our Super Loan Mod Success Stories

Our goal is to provide valuable information to help homeowners who are trying to obtain a loan modification or to stop foreclosure. You may schedule a free consultation at any time.

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