Wells Fargo Foreclosure Mishap: A Cautionary Tale About Needing an Attorney

Over time, helping people hold onto their lives with bankruptcy has expanded to a more complicated thing than just knowing bankruptcy laws. To really help someone in financial trouble, a lawyer needs to know about lending laws, consumer protection laws, and property ownership laws.

Wells Fargo now admits that a computer error incorrectly calculated about 600 homeowners’ eligibility for the federal mortgage modification program from 2010 to 2015, leading to over 400 completed foreclosures based on incorrect information that would otherwise qualify the mortgage holder to a loan modification. This is the latest in a long string of mishaps for the company’s public image with customers. According to the bank, it has set aside $8 million this year to help the affected customers. Wells Fargo is now offering $20,000 per borrower to each family that found themselves homeless.

How could this have been avoided?

These borrowers should have consulted with an attorney to ensure their matter was being handled correctly. The same rules apply to banks as any other financial institution or creditor. If the bank did something against those rules, it can stop a foreclosure. There are a lot of rules regarding foreclosure, bankruptcy, lending, and property. For regular folk, getting comfortable with how they work takes education and a lot of experience. People in financial trouble, even if the lender seems to be trying to work with them, should get a lawyer that is experienced in this very specialized part of the law to help them catch mistakes before they become a catastrophe.

If you are in need of experienced legal counsel for matters of personal injury, medical malpractice, medical device injuries, unsafe drug injuries, consumer protection, bankruptcy, SSD, or criminal law in New Jersey, please contact Tomes & Hanratty, P.C. and we will be happy to assist you.