Wells Fargo Home Loan Modification Debt Collection
Hagens Berman serves as co-lead counsel, representing California homeowners in a suit filed against Wells Fargo. The complaint shows that Wells Fargo allegedly extracted payments from distressed homeowners by falsely promising them the opportunity to avoid foreclosure through an illusory forbearance-to-modification program.
The lawsuit, originally filed on April 19, 2010 in the U.S. District Court for the Northern District of California, claims that the nation's fourth-largest bank duped thousands of Californians into agreements that were designed to give the impression that the bank was offering a trial loan-modification program to assess their ability to make regular, reduced mortgage payments. In fact, the lawsuit claims that the bank never intended to modify the home loan.
The forbearance-to-modification program was offered to homeowners in a form letter saying the bank had "good news" about their loan. The letter contained other language designed to convince homeowners that the plan could save their homes from foreclosure if they participated in a home load modification program, the suit states.
According to the suit, the vast majority of those who participated in the program lost their homes to foreclosure despite following the terms of the agreement.
On Jan. 3, 2011, Federal Court Judge Joseph C. Spero ruled against Wells Fargo in its motion to dismiss claims that the bank may have violated the Rosenthal Fair Debt Collection Act, and unfair competition laws in California. Pending class certification, the decision gives eligible homeowners standing to demand restitution for damages from Wells Fargo for the alleged fraudulent home loan practices, and injunctive relief.
California homeowners who had a mortgage through Wells Fargo, and lost their home due to foreclosure after abiding by the terms of the forbearance-to-modification program first offered in the letter are encouraged to speak with our legal team at Hagens Berman for a free consultation.
Hagens Berman purchases advertisements on search engines, social media sites and other websites. Transmission of the information contained or available through this website is not intended to create, and receipt does not constitute, an attorney-client relationship. If you seek legal advice or representation by Hagens Berman, you must first enter a formal agreement. All information contained in any transmission is confidential and Hagens Berman agrees to protect information against unauthorized use, publication or disclosure. This site is regulated by the Washington Rules of Professional Conduct.