Loan modification offer leads to wrongful foreclosure by bank
A bus driver and father of three says that Wells Fargo bank began foreclosure proceedings on his home despite the fact that he was completely up to date on his payment schedule.
The trouble apparently began when the man recieved a letter from the bank offering him a loan modification provided that he successfully make several consecutive payments under the modified plan. Once he made the agreed upon payments, the modification would be permanent and he could benefit from the new loan terms.
The man paid each of the trial payments on time and even overpaid on several of the statements. He says he was shocked and confused when he received a notice of a foreclosure proceeding from the bank.
After local journalists contacted the bank for an explanation, Wells Fargo issued a statement saying that since the man’s loan was a part of a pool of mortgage-backed securities the guidelines for the modification were very specific and that paying too early or paying too much in fact violated the terms of the agreement.
It is safe to say that most Atlanta readers would agree that this concept doesn’t make sense. Unfortunately, this type of conduct by banks is all too familiar and has been the target of a settlement agreement between government regulators and banks.
This story is just one more example of the deceptive and confusing practices by banks that can lead to a wrongful foreclosure for homeowners who are doing their best to play by the rules.
Source: WFTV, “Wells Fargo bank foreclosing on Orlando man who paid on time, early,” Kenneth Craig, May 16, 2013.