Daily Finance reports:
Despite the deposition of Wells Fargo (WFC) employee Herman John Kennerty, in which he admits to signing off on foreclosure documents without verifying anything but their dates, Wells Fargo continues to insist it doesn't have a documentation problem of the sort admitted to by its competitors, GMAC (GMA), JPMorgan Chase (JPM), Bank of America (BAC) and OneWest Bank.
But let's consider the case of Frederico and Herlinda Guevara of Texas:
Consumer bankruptcy attorney Thad Bartholow defended the Guevaras in U.S. Bankruptcy Court against Wells Fargo's claims that they owed $18,600 in mortgage arrears and fees. To prove that claim, Wells Fargo offered a sworn statement signed by employee Tamara Savery that Wells Fargo owned the Guevaras' mortgage. After Bartholow pointed out that Freddie Mac claimed to own the mortgage, Savery signed a second sworn statement swearing that Freddie Mac owned the loan and Wells Fargo serviced it for Freddie. When Bartholow deposed Savery and asked her how she could swear to two contradictory things, Savery admitted she neither prepared the documents nor verified their contents before signing them.
Given Savery's conflicting testimony, the bankruptcy judge refused to take her word about the servicing arrangement, and asked Wells Fargo to produce the servicing agreement or other "competent" evidence. But the bank either couldn't, or wouldn't, produce the agreement, and the bankruptcy judge disallowed the $18,600 claim. Wells Fargo appealed to U.S. District Court, and on Aug. 18, Senior U.S. District Judge Royal Furgeson affirmed the bankruptcy court's decision, meaning Wells Fargo lost that $18,600. The bank didn't appeal further.
Reports on the document crisis have rightly pointed out its potential to slow down the foreclosure process and further damage an already-dismal housing market. But there's another possible outcome: meaningful mortgage modifications. If instead of being pushed into foreclosure, more homeowners could stay in their homes and make affordable mortgage payments, the supply of homes on the market would shrink, helping to stabilize the housing sector. And mortgage modifications can be done as quickly as banks wish -- without lying to courts.
See full article from DailyFinance: http://srph.it/cafXQ5
2 comments:
Those jerks at Wells Fargo. They have been harassing Mama about homeowner's insurance which she does have. They have two weeks to get it fixed, otherwise she will lawyer up.
She is working on refinancing just to dump those losers.
Sorry that Mama is having problems with Wells Fargo, Kittybowtie. Unfortunately, Wells, Chase, Citi, Bof A, and other big banks are in cess pool of muck with the faulty docs and foreclosures. Look for more shoes to drop in more scandals.
I hope that Mama can find another lender to her deed instead of Wells. I heard alot of horror stories.
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