An interesting story about the banking company Wells Fargo has emerged. It seems that the company is now facing class-action lawsuits from people who allege that the bank improperly denied loan modifications to people who were trying to save their homes from foreclosure. These individuals all eventually lost their homes to foreclosure, leaving their families with no other option but to move out and move on.
According to the Dec. 22 report, the company is now blaming its mistakes on nothing more than computer problems. Others, however, point to facts which could prove that the company had malicious intentions.
The important thing to note about this case is that Wells Fargo received federal funds to help people with those mortgage modifications they were requesting. The goal was to help as many people as possible to avoid foreclosure. Investigators allege that people often qualified, yet the company did not allow for the modification as required by law to a number of low-income individuals. Wells Fargo admitted that they denied loan modifications to 870 people, and they foreclosed on 545.
The sad thing about a case like this is that it does have a significant impact on real people and their lives, even if they do receive a fair settlement as a result of their legal action. Receiving enough money to buy a new house or to make them whole, as much as possible, is great, but it won't reverse the damage to a person's credit score or undo the trauma they've suffered.
Loan modifications and other avenues of relief may be available to help if you are facing foreclosure. If you suspect that you're not receiving fair treatment from a bank, it may be wise to seek legal advice before you simply walk away from your home.