Wells Fargo Facing Lawsuit for Wrongfully Foreclosing
Ron Ward and his wife have been wrongfully foreclosed upon despite a forbearance agreement with Wells Fargo. Their house in Aptos, California was sold without their knowledge. They came to know of it only when faced with the eviction notice. Ward has filed a lawsuit against Wells Fargo.
Across America questions about the legality of foreclosures initiated against millions of houses are now cropping up in courts. The new twist to the foreclosure crisis started with the disclosures in court about the robo-signings.
Ward, a licensed realtor with Main Street Realtors of Soquel is feeling frustrated. He had kept aside money each month while following the loan modification schedule so that he could repay the dues later on.
The couple had previously bought a house on Middleton Drive for $180,000 in 1997. During the booming years when the property value had been jumping he refinanced it many times and then decided to reconstruct the unit and add another floor having a patio facing the sea. The location was great for the small family of husband, wife and a toddler. The beach was only two minutes walk and the neighbourhood was congenial.
It took about a year to rebuild the unit while Ward commuted to and fro Arizona for business purposes bringing back ideas. Towards the close of 2005 the Ward took a mortgage of $837,900 from Wells Fargo at the rate of 6% interest. Monthly payment of $4,189 had to be initially made. But within three years the housing boom had turned to bust and Ward’s wife lost her job.
The couple sought the help of Wells Fargo and the bank agreed to a loan modification. But the bank said that to be eligible they would have to be late on their mortgage dues. Accordingly the Wards ceased to pay. Ward contends that he submitted information in details regarding their monetary position to the bank but Wells Fargo repeatedly claimed to have lost it. They thrice asked for tax return. Ward had to spend hours talking over the phone.
After having stopped payments for three months they received a default notice from Wells Fargo. It said that the couple owed the bank $19,136 and that the date scheduled for foreclosure sale was 27<sup>th</sup> July 2009. From May to July Wells Fargo had thrice refused to modify the loan. In the papers submitted in court by the lender it has been stated that the borrowers did not respond to these notices.
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