YOUR MORTGAGE LOAN HAS BEEN REFERRED TO OUR FIRM FOR FORECLOSURE
In a recent case, a homeowner whose loan is serviced by Wells Fargo presented a letter from a law firm which proclaimed at its beginning: “Your mortgage loan has been referred to us for foreclosure.”
Dated on the very same day, Wells Fargo sent the homeowner a financial package to complete in order to gain a mortgage workout. Since in our experience the loss mitigation or workout departments of mortgage servicers do not maintain communication with foreclosure counsel, it appears Wells Fargo has already decided to file foreclosure, even while it invites the homeowner to provide information designed to avoid it.
THE END RESULT
Of course the end result of this type of conduct is to put tremendous pressure on the poor homeowner to accept whatever sort of deal the mortgage company may want to offer, even a deal which may be built to fail.
Fortunately, this homeowner came to us for advice, as we will use the law prohibiting dual tracking as an effective tool to force Wells Fargo to deal with him in good faith.
This is a weekly column by Sandusky attorney Dan McGookey, devoted to telling true stories of homeowners who have been victimized by a lending system that makes it profitable to foreclose. The names used have been changed for privacy purposes.