5 ms·
> but please explain the injustice of foreclosing on someone who isn’t paying their mortgage You can read more about the fraud here[1] but in short Wells Fargo
by elliekelly 7y ago
> but please explain the injustice of foreclosing on someone who isn’t paying their mortgage
You can read more about the fraud here[1] but in short Wells Fargo (and others) wrongfully foreclosed on homes that were owned by someone who:
- was not in default. i.e., They were, in fact, paying their mortgage or in some cases had even completely paid it off.
- was entitled to protection under the Servicemembers Civil Relief Act. Most often, active duty military personnel stationed overseas.
- was entitled to foreclosure protection under federal bankruptcy laws.
- had entered into a written modification agreement with the bank and had been abiding by the terms of that agreement.
- was wrongfully denied a mortgage modification or requested a mortgage modification and received no response.
In addition, there were many cases where the institution had an obligation to engage in loss mitigation efforts with the borrower (modification, short-sale, cash-for-keys, etc.) and failed to do so.
[1] https://www.federalreserve.gov/consumerscommunities/independent-foreclosure-review.htm https://www.federalreserve.gov/consumerscommunities/independ...