Wells Fargo Mortgage Foreclosure Defense

If you have a home loan with Wells Fargo and are behind on your mortgage payments, it is natural to be unsure of what steps to take next. Mortgage lenders, including Wells Fargo, are required to comply with the federal laws that regulate the foreclosure process in Florida. These laws prohibit lenders from using certain practices that are unfair and that violate the rights of homeowners.

You may have options if Wells Fargo has threatened foreclosure. The institution may not have a right to file a lawsuit against you and even if they do, there may be defenses available. It is important to speak to a Fort Lauderdale foreclosure defense lawyer who can advise you on the next steps to take.

What is Wells Fargo?

Wells Fargo is a financial services company based in the United States, but it has a global presence. The institution operates in 35 different countries and serves more than 70 million customers worldwide. It is known as one of the “Big Four Banks” in the United States along with Bank of America, Citigroup, and JP Morgan Chase. Wells Fargo is the result of a merger with a company based in Minneapolis. Today, the bank’s headquarters are in San Francisco.

Wells Fargo is the fourth-largest bank in the country by total assets and is also considered one of the largest as ranked by market capitalization and bank deposits. Sitting at Rank 41 on the Fortune 500 list, Wells Fargo is one of the most valuable bank brands.

Despite the fact that Wells Fargo has seen great success, the bank has been under investigation by regulators several times. The lender has also faced many complaints regarding unlawful foreclosure tactics and violations of consumer law.

Loan Owners vs. Loan Servicers

If Wells Fargo is threatening to foreclose on your home, it is important to know the difference between your loan owner and your loan servicer. Mortgage servicers do not actually own the home loan but instead, they handle the loan and manage it.

The owner of a mortgage loan is the company that originally provided the loan for someone to purchase a property. When one company purchases a loan from another institution, they are considered the new owner of the loan and the original owner has no legal interest in it. Loan owners often hire a second party to service the loan while others both own and service the loan.

If Wells Fargo has sent you a Notice of Intent to Foreclose or any other notice, it does not necessarily mean that they own the loan. Even still, failing to take immediate actions can result in a foreclosure in as little as six months. In the majority of cases, the foreclosure process is time-sensitive. You may be required to work with your servicer as soon as possible in order to achieve the best results.

Do You Have Rights in Foreclosure?

As a Florida homeowner, you have many rights even during foreclosure. These include:

• The right to challenge the foreclosure: If Wells Fargo has sent you a Notice of Intent to Foreclose and they do not own the loan, they have no legal standing to file a foreclosure lawsuit against you. This can serve as a defense and help you keep your home.
• Foreclosure mediation: Mediation is a process during which you and a representative from Wells Fargo will meet with a mediator. The role of the mediator is to help you and the institution reach an agreement about your home loan. The Florida courts sometimes refer foreclosure lawsuits to mediation on a case-by-case basis and so, you will have the opportunity to request it if your legal team thinks it can help.
• Loss mitigation: During loss mitigation, you and the mortgage servicer work together to create a plan that can allow you to avoid foreclosure. These plans can include loan modifications, repayment plans, forbearance, deed-in-lieu of foreclosure, and a short sale. Although not all of these options will help you keep your home, it can help avoid a foreclosure, which has many drawbacks.
• Bring payments up to date: Of course, if you can bring your payments up to date on the home loan, that can help you avoid foreclosure. Wells Fargo cannot refuse these payments but you may find this option difficult if you are already facing foreclosure.

Complaints Against Wells Fargo

Like so many big financial institutions, Wells Fargo has had its fair share of complaints filed against the company.

In 2014, Wells Fargo was accused by a bankruptcy attorney of falsifying mortgage documents so they could proceed with the foreclosure process. The complaint was filed in a New York federal court.

In August of 2018, the institution admitted to a software error that resulted in more than 400 customers having their homes foreclosed on. The Wells Fargo glitch affected those who qualified for a loan modification but were denied one. Wells Fargo knew of the problem in 2015 but they failed to inform customers for almost three years.

These complaints, as well as the others filed against the company, can challenge a foreclosure or stop it altogether. Additionally, if Wells Fargo engaged in bad business practices and broke the law, you may also be able to file a lawsuit against the company to claim damages. A Fort Lauderdale foreclosure defense lawyer can review the facts of your case and determine which option is best for you.

Call Our Foreclosure Defense Lawyers in Fort Lauderdale for a Free Review of Your Case

If Wells Fargo has contacted you and threatened foreclosure, you are likely to feel stressed, intimidated, and frustrated. These feelings are normal but it is important to remember that you may still have options and it may even be possible to keep your home. At Loan Lawyers, our Fort Lauderdale foreclosure defense lawyers have the necessary experience to advise you of your options and help you determine the best path for moving forward. Call us now at (954) 523-4357 or fill out our online form to schedule a free review of your case and to learn more.