Foreclosure and Loan Modification Blog (9)

Wells Fargo Wrongly Denies Hundreds of Homeowners Loan Modifications

Wells Fargo recently revealed that they wrongly denied or failed to offer 625 homeowners mortgage loan modifications due to an error with their underwriting software. The company says that about 400 of those customers lost their homes to foreclosure.

The error affected homeowners who were in foreclosure between April 2010 and October 2015. Now, nearly three years after correcting it, the country's fourth-largest bank has disclosed the error.

“We’re very sorry that this error occurred and are providing remediation to the approximately 625 customers who may have been impacted,” a spokesperson for the company said in a statement.

Wells Fargo says that it has set aside $8 million for customers affected by the issue. That's just $12,800 for each customer affected. Pitiful.

[fa icon="clock-o"] Friday, August 10, 2018 [fa icon="user"] Maxwell Swinney [fa icon="folder-open'] wells fargo loan modification, foreclosure

Homeowners who fall seriously behind on their mortgage often notice something strange when they are served a foreclosure complaint: under defendants, alongside their name, there are other “unknown” defendants listed. Who the heck are these “Unknown Parties”, and why are they on your complaint?

Before I answer that, let's look at an example of a foreclosure complaint from a recent client of our firm in Collier county, Florida (my bold):

“VERIFIED MORTGAGE FORECLOSURE COMPLAINT

Plaintiff, U.S. Bank National Association, sues Defendants (Names Redacted); Any and All Unknown Parties Claiming By, Through, Under, and Against the Herein Named Individual Defendant(s) Who Are Not Known to be Dead or Alive, Whether Said Unknown Parties May Claim an Interest as Spouses, Heirs, Devisees, Grantees, or Other Claimants; Unknown Party #1, Unknown Party #2, Unknown Party #3 and Unknown Party #4, the names being fictitious to account for parties in possession, and alleges...”

You can see from that excerpt that US Bank is suing homeowners in a foreclosure lawsuit. After the owners names, they also list as defendants “Any and All Unknown Parties (who)...May Claim an Interest” in the property. They use language that covers any possible way that a person could have an interest in the subject property, such as “Spouses, Heirs, Devisees, Grantees”.

Illinois Hardest Hit Fund Helps Senior Avoid Reverse Mortgage Foreclosure

Recently our firm was hired by a homeowner in Chicago, Illinois who needed help saving her home from foreclosure. To protect her privacy, I'll call this client “Ms. Campbell”.

Ms. Campbell's home was scheduled to be sold in a foreclosure auction in March, 2018. She hired us in January. Retaining an experienced law firm like ours that has a record of helping people in her situation was the smart thing to do, but it's better to do so before a sale date is scheduled.

With so little time until the scheduled foreclosure sale, would we be able to save her home?

Unlike most people facing foreclosure, Ms. Campbell wasn't past due on her mortgage payments. She doesn't even have mortgage payments. She was facing foreclosure on her reverse mortgage, which takes advantage of the equity she had in her home.

[fa icon="clock-o"] Sunday, August 5, 2018 [fa icon="user"] Maxwell Swinney [fa icon="folder-open'] hardest hit, reverse mortgage, reverse mortgage foreclosure, Hardest Hit Fund

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners. Here are some of their stories.

Every week we obtain loan modifications for our clients with a variety of loan servicers. You can see these results as they are announced on Twitter (#loanmodwow) or Facebook. Here are some of our results from this week with SPS and US Bank:

US Bank

After falling 12 months and $13,554 past due on his mortgage payments, we helped our US Bank client get a fresh start through a final FHA partial claim loan modification with $22,121.65 partial claim due at maturity in 30 years!

[fa icon="clock-o"] Friday, August 3, 2018 [fa icon="user"] Maxwell Swinney [fa icon="folder-open'] sps loan modification, us bank loan modification, loan modification success

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners. Here are some of their stories.

Penny Mac

Our Penny Mac client was $6,259.79 past due on his mortgage, but we helped him get a final loan modification with $488.17 cheaper monthly payment and lower interest rate!

Hardship Letter Tips for a Successful Loan Modification

If you are trying to obtain a loan modification or other loan workout plan, then your bank’s guidelines are going to require that you write a hardship letter.

[fa icon="clock-o"] Monday, July 23, 2018 [fa icon="user"] Kristen Clinton [fa icon="folder-open'] loan modification attorney, write a hardship letter, hardship letter

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners. Here are some of their stories.

SLS

Our SLS clients were 5 months and $10,309.20 past due on their mortgage payments, but we helped them get a final loan modification with $610.70 cheaper monthly payment and $48,838.95 non-interest bearing deferment!

What You Should Know About Foreclosure Mediation Conferences In Illinois

Some counties in Illinois offer mediation programs to homeowners in foreclosure, which are “designed to create an opportunity for homeowners and lenders to come together to explore mutually beneficial alternatives to foreclosure.”

At the mediation conference, a homeowner and a representative from the foreclosing lender will come together with an impartial third party where alternatives to foreclosure, such as loan modification, repayment plan, short sale, and deed in lieu of foreclosure, may be discussed.

Can I Participate In Mediation?

In some counties in Illinois, it's mandatory that mediation be offered to eligible homeowners facing foreclosure.

[fa icon="clock-o"] Saturday, July 7, 2018 [fa icon="user"] Maxwell Swinney [fa icon="folder-open'] illinois foreclosure lawyer, mediation, foreclosure process in illinois

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners. Here are some of their stories.

Caliber

After falling 8 months and $16,719.18 past due on their mortgage, we helped our Caliber clients get a final VA loan modification with $283.31 cheaper monthly payment and $16,719.18 deferred for 30 years!

Successful Loan Modification Roundup Week of 6/29/18

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners. Here are some of their stories.

Ocwen

Our Ocwen client was 38 months and $47,526.85 past due on her mortgage, which had been modified in 2015. with a foreclosure sale date scheduled, but we helped her get a 3-month streamline trial loan modification plan with $188.54 cheaper monthly payment!

Foreclosure and Loan Modification Blog

Wells Fargo Wrongly Denies Hundreds of Homeowners Loan Modifications

Who Are the "Unknown Parties" In Your Foreclosure Case?

Illinois Hardest Hit Fund Helps Senior Avoid Reverse Mortgage Foreclosure

Successful Loan Modification Roundup Week of 8/3/18

US Bank

Successful Loan Modification Roundup Week of 7/27/18

Penny Mac

Hardship Letter Tips for a Successful Loan Modification

Successful Loan Modification Roundup Week of 7/20/18

SLS

What You Should Know About Foreclosure Mediation Conferences In Illinois

Can I Participate In Mediation?

Successful Loan Modification Roundup Week of 7/6/18

Caliber

Successful Loan Modification Roundup Week of 6/29/18

Ocwen

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