We heard so much on major banks foreclosing on so many homeowners in this economic crisis. But, this is the first case that I have ever heard of a homeowner foreclosing on a bank's local office. Yes, it is true. His name is Patrick Rodgers. His case is not about robo-signing, illegal foreclosing on his home, seeking loan modification, or questioning his deed on his home but about his homeowners policy.
Mr. Rodgers' nightmare started in 2009 when he first wrote to Wells Fargo, requesting itemized information about the mortgage on his home in Philadelphia. Mr. Rodgers said that Wells insisted on what's known as forced-place home insurance, which cost $2,400 a year. Then, the bank began to force him to take out a $1 million homeowners policy on his home, which he maintained the value of his home is not $1 million. He bought his 3-story Victorian home in West Philadelphia for $180,000 in 2002. So, over the next year Mr. Rodgers sent at least four letters demanding answers under the Real Estate Settlement Procedures Act, or RESPA to Wells Fargo from June to September and received no reply from them. Real Estate Settlement Procedures Act, or RESPA, is a consumer protection stature that passed in 1974 that requires that a mortgage company to acknowledge written requests of a borrower within 20 business days, or face damages or penalties. As a result of Wells Fargo not responding to Mr. Rodgers' letter, Mr. Rodgers took Wells Fargo to court. And here is what happened:
So he went to court, citing the law, and received a $1,173 judgment against Wells Fargo. The bank did not respond to his action and he won a default judgment. Then Rodgers placed a sheriff's levy against Wells Fargo's local mortgage office for the judgment, plus interest.
On Tuesday the court placed a temporary stay on the sale, and ordered a hearing on Feb. 23 to determine the final status.
Rodgers said he is now awaiting $50 from Wells Fargo for the cost of initiating that sale. He said the sheriff's sale can continue until then, barring an unfavorable judgment from the hearing, which he does not expect.
However, Wells Fargo sent two checks to Mr. Rodgers – $1,078.00 on January 14 and $95.00 on January 26, but he said he still hadn't received a response from the bank to his letters. And why won't Wells Fargo send a response to Mr. Rodgers which is required under the federal law? Here is Wells Fargo's response:
Wells Fargo spokeswoman Vickee Adams didn't speak to why Rodgers' inquiries went unanswered, but said that the obligation of the mortgage contract is that the homeowner carry insurance.
"We were surprised to learn about the sheriff's sale because we sent him the funds and we thought the matter was resolved," she said. "We fully expect this to be concluded later this month."
It is amazing that Wells still don't get it that they violated that RESPA law and, no one from the executive office from Wells Fargo responded to this story despite Wells Fargo's local office is being foreclosed on. Well, finally Mr. Rodgers has received a phone to call today from Wells. CNBC reports:
Today Mr. Rodgers received his first telephone call from Wells Fargo—from a Senior Vice-President of Customer Relations—who reports directly to Mr. Stumpf (Wells Fargo CEO).
Rodgers described his conversation with the senior VP as cordial, and focused on finding a resolution to their dispute. He added that he is cautiously optimistic.
He said of his situation, where an individual is dealing with a large company: "The moral of the story is don't back down. Do your research. Know your rights. And don't be intimidated."
Mr. Rodgers is inspiring to the struggling homeowners and gives them hope. As he said: do your research and stand up to the banks. Mr. Rodgers certainly showed Wells Fargo as bullies and as idiots. And the other banks should really pay attention to Mr. Rodgers' case because others will follow his footsteps.
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