Another Class Action RE Deceptive Loan Modification Practices – Forster, et al. v. Wells Fargo, et al.

Lawsuit Alleges That Loan Servicer Engaged Deceptive Loan Modification Practices

New York, New York, November 23, 2010 (GLOBE NEWSWIRE) – The law firm of Harwood Feffer LLP (www.hfesq.com) today announced that it filed a class action lawsuit against Wells Fargo Bank, N.A. (NYSE:WFC), and its loan servicing division, America’s Servicing Company (“ASC”), for fraudulent and deceptive practices related to loan modifications.

The lawsuit, filed in the United States District Court for the Northern District of California, Forster, et al. v. Wells Fargo, et al., Index. No. CV-10-5321(BZ), alleges that ASC improperly and unlawfully induced borrowers to default on their mortgages by informing borrowers that loan modifications would not be considered for those individuals who were current on their payments. By making loan default a pre-requisite for modification, without regard to whether a borrower otherwise qualified for a modification due to financial hardship, ASC caused borrowers to unnecessarily suffer ruined credit and subjected them to significant fees, penalties and interest.

ASC is a loan servicer, meaning it does not have a beneficial interest in the mortgage loans it oversees but rather is contracted to administer and enforce the terms of the mortgage agreement. As a loan servicer, ASC generates a significant portion of its revenue from fees, penalties, and interest collected on the non-performing loans it services. Consequently, it is in ASC’s financial interest to avoid, delay, and deny loan modifications and to pursue foreclosures because doing so will lead to increased revenue.

Full complaint below…

~

4closureFraud.org

~

Forster, et al. v. Wells Fargo, et al.


Comments
10 Responses to “Another Class Action RE Deceptive Loan Modification Practices – Forster, et al. v. Wells Fargo, et al.”
  1. Refusing2bAvictim says:

    I have been fighting with Carrington Mortage for years now over fraudulent loan and mortgage payment modifications. I received a letter in the mail a few months ago regarding a class action lawsuit against them I had a chance to be included in. I don’t presently know where I have misplaced it. Did anyone else receive such documents or have a link where I can get a hold of them? & does anyone know if there is still time to be included in that class action suit? Any information you all could share would be greatly appreciated. I am running out of time and they keep trying to short sale my home and I am tired of fighting this battle alone.

    Sincerely,
    Refusing2bAvictim

  2. Ann says:

    is there a class action suit against Indymac Mortgage Services ie: One West Bank?

  3. usjustice4all says:

    Also in So Cal, Ventura Co., Bert where are you? Can we get in on the class action? Sending our paperwork in?

  4. bert says:

    LOOKING FOR ATTORNEYS FOR SOUTHERN CALIFORNIA CLASS ACTION LAWSUIT AGAINST THIS
    COMPANY ASC / WELLS FARGO. WE HAVE THE SAME FRAUD. ASC STATED UNDER PENULTY OF PERJURY THEY ACQIERED SERVICING RIGHTS TO MY DEED OF TRUST ON 6/30/2006. LIE LIE LIE
    MY HO– USE WAS NOT COMPLETED UNTIL OCT 2006 AND IT WAS NOT IN MY NAME IT WAS IN THE BREHM
    HOMES NAME. I DID NOT SIGN LOAN DOC UNTIL NOV 14 2006, SO HOW COULD ASC ACQUIRED SERVICING RIGHT ON JUNE 30 2006. THEY TOLD THE SAME LIE HERE THEY COULD NOT HELP THEM IF THEY WERE NOT BEHIND.

    • joe guy says:

      Classaction against wells fargo, New Century…..aka…..Carrington Mortgage. In house modification on $30,000.00 will cost me $500.000.00 with a 30/40 ballon. They totally ignore the Federal guidelines for Making Home Affordable yet they recieved $178,000.00 interest free loan to keep their doors open..

      • Joe Guy says:

        Sorry….people. I am so pissed off about this nonsense I put the wrong number…….$178,000,000.00 interest free……….for your bank only…….

    • usjustice4all says:

      look for me on twitter and we can talk, and thanks Katheryn

Leave a Reply