After the scandal that rocked Wells Fargo last year, one might think that the company’s officials would be careful to make sure that all of their activities were legitimate. With that said, it seems a bit unbelievable that they are now being accused of making changes that were unauthorized to the home loans of customers that are in bankruptcy and trying to stop a foreclosure. Before allowing any changes to their mortgages, Florida customers may want to seek the advice of an attorney or at least read the fine print.
At first, the changes that were allegedly made to these mortgage accounts seemed to be in favor of the customer. The loan payments would end up being much lower than before, making them easier for the customer to pay. What customers did not see was that Wells Fargo officials had added many years to the length of their loans. This caused them to owe a great deal more to the bank and led to them having to pay much more for their homes.
One of the biggest concerns about this activity would be the legality of it, or lack thereof. Before a change can be made to a loan that is in bankruptcy, it must be approved by the court and any other party involved. These changes were created and approved by the company without the court’s knowledge. Wells Fargo has been changing the loans of borrowers without their request to do so since 2015, according to the court documents.
For those in Florida who have filed bankruptcy to stop a foreclosure or are considering doing so, it is important to be aware of any and all changes that are being made to any loan involved. One way to be sure that all activity surrounding the bankruptcy is legal and legitimate is by consulting with an experienced bankruptcy lawyer. This attorney can advise the client on the legality of all practices and modifications made to their mortgages.
Source: nytimes.com, “Wells Fargo Is Accused of Making Improper Changes to Mortgages“, Gretchen Morgenson, June 14, 2017