A loan forbearance can be a great option for homeowners who are in danger of foreclosure and just need some time to get caught up on payments. This is an option that lenders are offering due to the COVID19 pandemic. A forbearance must be requested by the borrower. In the case of Wells Fargo, they went ahead and froze mortgage payments for their customers without their approval!
According to the bank, this was just a common case of miscommunication in which they thought they were helping their customers. According to some borrowers, this was an unwelcome invasion on their ability to choose. It may seem like no big deal, except that if you were in the middle of applying for a loan modification the forbearance will halt that progress. Customers who had found other solutions to their mortgage problems are now in an uproar because the forbearance froze their Wells Fargo account so that no solution can be reached.
How did the bank decide that these customers needed help? It all started with a link on their website that reads: “Click if You Have Been Affected by COVID-19”. Once customers clicked on the link and input their details to receive more information, the bank placed the customers' account in forbearance. Other customers say that they called and asked about this information and after this phone call, they were also placed in forbearance automatically.
Customers are especially angered by the bank's action because, due to the pandemic, mortgage interest rates are extremely low right now. This makes it very appealing for homeowners to refinance their current loans–-which they cannot do if they are in forbearance.
This is not the first time Wells Fargo has lost the trust of its customers by signing them up for programs they did not request or know about. In the past, customers have complained about being required by the bank to purchase insurance they did not need or having credit accounts opened in their name that were not requested. Once again the bank has caused borrowers to be worse off from the actions of the servicer than they were before.
If you have an account with Wells Fargo, check on the status immediately. If you are in foreclosure trouble, give Amerihope Alliance Legal Services a call so we can help!
