December 19, 2018- Kohn, Swift & Graf is currently investigating Wells Fargo for their alleged software glitch that caused 545 homeowners to lose their homes.
Wells fargo ForeclOsure Error caused many to lose their homes
In 2010, a South Carolina couple, Jeff and Eva Reiner, turned to Wells Fargo, their mortgage servicer, for help making their payments. Wells Fargo did not accept their requests for a mortgage modification and eventually foreclosed on the home, forcing the couple to move their teenage son, give up three dogs, and forfeit the equity they had built up in the house.
It wasn’t until so many years later that the Reiners learned from media reports that they were among the 545 other homeowners who lost their homes because of an apparent software glitch with Wells Fargo’s loan modification process. In September, Wells Fargo wrote the Reiners a letter explaining that the family’s plea for a mortgage modification would have been accepted if not for a “faulty calculation.” The bank further admitted that the couple should have been approved for a trial modification- a reduction in monthly payments that would have saved their house from foreclosure.
A Wells Fargo spokesman said, “If they had accepted the offer [that Wells Fargo never made] and kept up with the payments, then the foreclosure would have been avoidable potentially.” Wells Fargo apologized to the couple for the mistake, enclosed a check for $15,000 to help “make things right” and offered free mediation for further compensation.
It has been further alleged that Wells Fargo failed to disclose the problem years ago even though the bank said in SEC filings the calculation error was corrected in October 2015. In addition to the foreclosure issue, Wells Fargo has admitted to creating millions of fake accounts over the past two years, forcing thousands of borrowers into auto insurance that they didn’t want and imposing mortgage fees on homeowners that they didn’t deserve.
KS&G wants to seek justice for borrowers like the Reiners who were allegedly victimized by the bank’s wrongful foreclosures. If you or someone you know were affected by Wells Fargo’s errors, please contact us. All consultations are free of charge. You may be eligible to be included in a Class Action Lawsuit.
Kohn, Swift & Graf is a national leader in class actions, including complex consumer litigation. With experienced consumer class action attorneys and a competent support staff, our firm strives to provide the highest quality of service to our clients. We treat each case with careful attention to ensure that consumers get the justice they deserve. KS&G is centrally located in Philadelphia, PA. We handle cases nationwide.