Friday, October 23, 2020

Wells Fargo Creates Fake Foreclosure Sale Date for NC Property

Wells Fargo Creates Fake Foreclosure Sale Date for NC Property

As an attorney who represents many homeowners and other mortgage loan borrowers in mortgage relief, mortgage dispute, and foreclosure cases, I deal with some fairly unusual situations. This current case with Wells Fargo, in which I had a foreclosure hearing this week, well let’s just say that if we were hosting a tournament of outrageous cases, WF would get at least a #2 seed for this case (since March Madness is going on right now). The fact that it might not get a top rated seed just shows how stiff the competition is as far as bad acts by these mortgage lenders and loan  servicers. 

We asked for a deed in lieu of foreclosure (DIL), and the facts match up pretty nicely for that outcome; the property value is bit higher than the unpaid balance of the loan (UPB), and the property value is approximately equal to the UPB plus the late fees, costs, etc. which have accumulated. These clients – a married couple in Charlotte – suffered downturns in their small businesses and one of them suffered major medical problems, requiring surgery and a lengthy recovery.

Some mortgage loan holders, or the investors which control these loans behind the scenes, have a 60 day cutoff for applying for a deed in lieu; in other words, if there is a foreclosure sale date already scheduled within 60 days, the loan servicer (on behalf of the loan note holder) will not even consider the DIL request. In this case, there was no foreclosure sale date set, but WF had put a sale date in its computer, a date less than 60 days away. The local law firm handling the case confirmed that there was no sale date, but Wells Fargo responded by basically saying “Because we entered a sale date into our computers, we can’t/won’t process the DIL request.”

Foreclosure Hearing

 Just a year ago we had the National Mortgage Settlement, requiring WF to pay over $5 billion due to illegal mortgage and foreclosure activities, and yet it still acts in this manner. I mean, when a $5 billion penalty isn’t enough to get you to change your ways, something is really wrong.

Let us think about this – there literally was no foreclosure sale date – but because some muttonhead at WF had entered one into the computer, Wells Fargo pretended as if the property was scheduled for sale and refused to help these homeowners. What the hell is going on in our world, when a random computer entry – creating a false, pretend foreclosure sale date – is the dominant factor when even the substitute trustee law firm hired by WF itself confirms there is no sale date?! This is mind-boggling, dismaying, pathetic, shameful, baffling, bewildering, discouraging, perplexing, troubling, and every other synonym which comes to mind. Of course, Wells Fargo is no stranger to fraudulent activities.

Home Fraud

The result of this? Well, now there is a foreclosure sale date, since WF refused to consider a DIL due to the fake foreclosure sale date and related 60 day deadline. (The sale date is not the fake date WF put into its system.) Ironically, since the actual, real sale date is more than 60 days away, maybe now Wells will at least consider the request? I mean, the only reason for the refusal was the fake sale date being within 60 days of the DIL request, so now that that obstacle has been removed . . . ? We shall see what happens.

Unfortunately, this is not the only case I have with Wells Fargo right now where it is just making stuff up. More to follow, as always.