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Wells Fargo offering loan mod scandal victims lowball settlements, mediation instead of fair compensation

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DannLaw attorneys suspect troubled bank has understated number of victims, urges Wells borrowers who received loan modifications between 2010 and 2015 to seek legal advice.

Earlier this year Wells Fargo revealed in an SEC filing that a “software glitch” caused the bank to improperly deny mortgage loan modifications to 625 homeowners between 2010 and 2015. At the time, Wells said it had set aside eight million dollars to compensate borrowers impacted by the mistake, including the 400 families who lost their homes to foreclosure.  Now victims of the incident are receiving checks from Wells. Attorney Marc Dann, founder and managing partner of DannLaw, is urging them to seek legal advice before accepting the money.

“A number of borrowers who received checks from Wells have contacted us to ask if the amount being offered is fair,” Atty. Dann said. “Obviously, families who went through the trauma of losing or almost losing their homes due to Wells’ incompetence deserve more than a few thousand bucks—especially if the company violated federal lending laws and rules. We’ve launched an investigation to determine if that’s true.  No one should cash a check they receive from the company or sign a settlement agreement until our inquiry is complete.”

That investigation is likely to reveal Wells has understated the number of people damaged by the glitch. “Company officials admit 625 borrowers were improperly denied modifications,” Atty. Dann noted. “But that’s only part of the story. The same software error may have caused loan mods that were granted to be miscalculated. As a result, thousands of homeowners may be making payments that are much higher than they should be.”

“Wells has no intention of telling them about the problem, so we’re making a concerted effort to alert anyone whose mortgage was modified by Wells Fargo between 2010 and 2015 that they may have been cheated,” he said noting that borrowers with “conventional” loans owned by Fannie Mae or Freddie Mac comprise the pool of potential victims.

“Talking to those folks will enable us to assess whether and to what extent Wells violated lending laws and regs, including the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA)” Atty. Dann explained. “If we discover the law has been violated, borrowers could receive thousands of dollars in compensation from Wells whether they are a member of the group of 625 homeowners the bank admits to abusing or someone whose loan mod was miscalculated. In either case, we’re able and eager to take legal steps that will hold Wells accountable for its actions and make victims whole.”

Borrowers who receive a compensation/settlement check from Wells, as well as those who received a loan modification from the bank between 2010 and 2015, may call 877-475-8100 to arrange a free consultation with DannLaw.

OH Sheriff Sale Timeline

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If you find yourself in the middle of foreclosure proceedings in Ohio, it is important to know what the steps are leading up to the sheriff sale and when the sale will take place. It is also paramount to know what will happen if the sale occurs and the time frame in which you can still pay off the mortgage and save the property.

The OH Sheriff Sale Timeline Explained

  1. The lender files a foreclosure complaint with the Court of Common Pleas in the county in which the property up for foreclosure is located.
  2. A summons and a copy of the foreclosure complaint will be sent to you. You have 28 days to respond to the complaint and summons. At this point it is wise to retain the services of an experienced attorney to discuss the options available to you, including:
    • Filing a Motion to Dismiss – If you think the mortgage lender is foreclosing improperly, you can file a motion to dismiss, which is asking the court to drop the lawsuit.
    • Filing an Answer – Answering the complaint will allow you to state which allegations in the complaint are true and which you wish to dispute. This may also enable you to ask the court for additional time to resolve the case with your lender.
    • Asking for an Extension – You may also ask the court for more time than the normal 28 day period to formulate a response to the complaint.
    • Ignoring the Complaint – This is not to your benefit if you want to stay in your home, as it allows for the lender to file a motion for default judgment with the Court. This allows the lender to move to a sheriff sale much faster.
  3. After your response, the lender will file a motion for summary judgment. This asks the Court to declare you have no proper legal defense. If you want to dispute the lawsuit, this is the point where you do so. If the motion is successful, then the lawsuit will be won by the lender and the foreclosure will move towards the sheriff sale.
  4. At any point in the foreclosure proceedings you can opt to file for bankruptcy which will stop the foreclosure proceedings. You should consult an experienced bankruptcy attorney to further explore this option to see if it is right for your situation.
  5. The sheriff appraises the property to assess its value with the aid of three disinterested persons.  The sale is then advertised for at least three consecutive weeks in a local newspaper.
  6. The Sheriff Sale takes place. This is a public auction where the property must be sold for at least 2/3 its appraised value. Often the lender is the winning bidder. Note that you are not required to leave your home and the buyer cannot change the locks or otherwise evict you until the redemption period is finished.
  7. The redemption period starts. The sheriff has up to 60 days to report to the court about the sale and the court has up to 30 days to confirm the sale. During this time you may redeem the property by paying the full amount owed on the judgment. Note that this can take anywhere from the full 90 days to only a few depending on how fast the sheriff and the court process the foreclosure.
  8. The deed is drawn up and the buyer pays the purchase price and records the new deed. At this point the buyer takes possession of the property and can move to have you evicted.

At DannLaw, we will help you fight against foreclosure and explore all of your options for stopping a sheriff sale and staying in your home. We will aid you in making smart decisions every step of the way and make sure that your lender follows all proper legal procedures. Contact DannLaw today to get started on your foreclosure case.

The Ohio Foreclosure Timeline

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In order to foreclose on a home in Ohio, a mortgage lender must file a foreclosure complaint with the county court. This gives homeowners an opportunity to save their home by contesting the complaint. If your lender is attempting to foreclose on your home, you should immediately educate yourself about the process and seek the help of expert legal counsel like the attorneys at DannLaw. The timeline below explains how the process works but remember, not all lenders proceed in the same way and situations may evolve differently depending on individual circumstances.

Understanding the Ohio Foreclosure Timeline

  • Day 1 – You miss your first mortgage payment.
  • Day 16 – Your mortgage lender starts to assess your situation and add late fees to your mortgage bill.
  • Days 45-60 – During this period, your lender will usually send a letter stating that you are in breach of your mortgage contract. This letter will specify options for catching up on payments and what to expect if payments are not forthcoming.
  • Day 120 – Once you have missed three payments, the mortgage lender may move to file a foreclosure complaint at your county’s Common Pleas Court. A copy of the complaint and a summons will be sent to you. At this point you should contact an attorney because you are now dealing with a lawsuit that is actively being processed in the court system.
  • Days 121-148 – You have until Day 118 to file an answer to the summons and complaint with the Court. During this time period you may seek mediation or request additional time to work with your mortgage lender.
  • Days 148- ? – If you filed an answer you may be granted additional time to resolve the foreclosure with your mortgage lender. The lender will then file for a motion for summary judgment. If you do not answer it will be assumed that you agreed with everything in the foreclosure complaint and the bank will win the case by filing a motion for default judgment. If the Court grants either of the motions then your lender will contact the local Sheriff’s Office to schedule a Sheriff Sale.
  • Bankruptcy – At any point in the foreclosure process, you can file for bankruptcy. This will stop the foreclosure proceedings. It will not wipe away your mortgage, but it can give you the time you need to get back on track and keep your home. You should consult an experienced bankruptcy attorney to determine whether this is an option and to help you through the process if you decide bankruptcy is right for you.
  • Sheriff Sale – Your house will be put up for auction on the day of the Sheriff Sale. If your home is sold you will not be required to leave immediately.
  • Redemption Period – Following the Sheriff Sale, the sheriff has up to 60 days to notify the Court of the sale. The Court will confirm the sale within 30 days of the notification. The time between the sale and the confirmation by the court is called the redemption period. During this period you have the right to buy your house back for the sale price plus any additional fees incurred during the foreclosure process. The redemption period may be as short as two days or as long as three months.
  • Execution of Writ of Possession – The final step is the execution of the writ of possession. You will be told by the sheriff that you must leave your home or be evicted. The amount of time you will be given to vacate the property varies by county.

Foreclosure can be a confusing and intimidating process, so you should consult with experts who know how to help families save their homes. Contact DannLaw today to discuss your case so we can help you understand your options for staying in your home.

Understanding Mortgage Reinstatement in Ohio

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What are Mortgage Reinstatements and Loan Modifications

When you fall behind on your mortgage payments, the best way to avoid foreclosure is to pay the arrears, or the amount you owe your lender. There are two ways to bring your payments up to date so you can stay in your home.

Mortgage Reinstatement

If you have the funds needed to immediately resolve the past due balance you may apply for a mortgage reinstatement.

To begin the mortgage reinstatement process you must contact your lender, Bank of America, Wells Fargo, etc., and ask them to provide a quote listing the exact amount you must pay to become current on your mortgage payments. The quote should include:

  • All missed payments and current payments due
  • Any late fees
  • The cost of property inspection, if applicable
  • If a foreclosure is underway, any fees related to that process that must be paid
  • If a sheriff sale is scheduled, the fee required for cancellation

The quote must be paid in full for the reinstatement to be valid.

Loan Modification

If you, like many people facing foreclosure, do not have the funds needed to pay all your arrears at once you may apply for a loan modification, which will enable you to resume making payments and take care of your past due balance over time. This option is preferable to paying thousands of dollars to bring your loan up to date only to find yourself on the brink of foreclosure again because your existing mortgage loan is unaffordable.

A loan modification or a short sale may lower your monthly payments, make your housing costs more affordable, and create the opportunity for you to stay in your home as you pay your arrears.

Contact DannLaw Regarding Mortgage Reinstatement

If you want to apply for a mortgage reinstatement or loan modification the foreclosure defense attorneys at DannLaw are here to help. We’ll use our years of experience and extensive knowledge about the foreclosure process to draft a strategy for resolving your situation. Contact us today to schedule a free consultation.

How Can I Stop an Ohio Sheriff Sale?

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If you are in danger of losing your home to foreclosure, you should contact an Ohio foreclosure defense attorney immediately. That’s true even if your mortgage lender, Wells Fargo, Bank of America, etc., has obtained a final judgment and a sheriff sale of your home has already been scheduled. There are laws in place to protect your rights, and you can still fight back. Here’s what you can do to postpone or stop an Ohio sheriff sale.

Options to Stop an Ohio Sheriff Sale

Obtain a Stay of Sale Motion. You can file a motion asking a state court judge stay the sale.

Seek Bankruptcy. Filing for Chapter 7 or Chapter 13 bankruptcy will generate an Automatic Stay that stops all creditor actions including foreclosure lawsuits and sheriff sales. This is true even if you file for bankruptcy the morning of the scheduled sheriff sale. But please don’t wait until the last minute, contact DannLaw to arrange a no-cost consultation before a foreclosure lawsuit is filed or sheriff sale is scheduled so we can determine which course of action is best for you.

Apply for a Loan Modification. If you apply for a loan modification in Ohio at least 38 days before the date of a sheriff sale your lender must halt the sale and review the application before proceeding. If your loan modification is approved and you begin making payments your lender cannot pursue a foreclosure action or sheriff sale.

Learn more about the OH Sheriff Sale Timeline

Contact the Foreclosure Defense Attorneys at DannLaw

It is important that you contact a foreclosure defense attorney as soon as possible if you are facing an Ohio sheriff sale. DannLaw’s knowledgeable and experienced attorneys have helped hundreds of families stay in their homes. Reach out today for a free consultation so we can discuss your situation and begin fighting for you.

We can help you stop a sheriff sale in all Ohio counties including:

Keeping the Dream Alive

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Last year, Edwardo Sanchez, a paralegal in DannLaw’s New Jersey and New York office became the first person in his family to graduate from college, an event he proudly shared on Twitter. His tweet was noticed and retweeted by none other than Bill Gates who told his 43.2 million followers that Edwardo’s story was an “amazing moment of hope and progress” in what had been a “really tough year.” I agree with Mr. Gates, Edwardo’s achievement gives us all hope that the American Dream is still alive.

Like Mr. Gates I also believe 2017 was a really rough year – and I’m afraid it may have been the first in an epoch during which it will become increasingly difficult for people to realize their dreams whether they involve graduating from college, buying a home, living in a safe neighborhood with good schools, achieving financial security, participating in the democratic process, realizing their full potential as human beings, or enjoying their retirement years. All those things are now at risk because the current administration is rolling back regulations and refusing to enforce laws that ensure Edwardo and other Americans have the opportunity to use their talents to achieve and succeed.

I’ll readily admit I was depressed about the situation until I realized that there was one group in the country that could step in and assume the responsibilities government was abdicating – lawyers. That’s right, lawyers like me, like my colleagues at DannLaw, like the thousands of lawyers across the country who do one thing in many different ways – help clients achieve their dreams.

When you think about it, we lawyers have always been in the hope and progress business. We’ve always been there when the government failed to protect its citizens. Lawyers were at the forefront of the civil rights movement, the drive to make cars safer, to rid medicine of bad doctors and dangerous drugs, to clean up our air and water, to protect consumers, and advocate for the disabled.

Armed with only JDs, knowledge, guts, and an unwavering belief in the principle of equal justice under law, lawyers made America a better place to live time and time again.

That aspect of our profession has never been more important than it is today.

With that in mind, we at DannLaw are redoubling our efforts to battle the home foreclosure crisis that is still roiling communities across Ohio by using Regulation X of the Real Estate Settlement Protection Act (RESPA) and Regulation Z of the Truth in Lending Act (TILA) to hold lenders and servicers accountable when they ignore the law and abuse borrowers.

Fortunately, these powerful tools managed to escape the fate that has befallen large portions of the nation’s regulatory regime over the past year. Indeed, I’m both happy and astonished to report that Reg. X is stronger than ever thanks to the enactment of additional amendments that became effective in October. Readers can learn more about the new provisions by visiting DannLaw.com or by contacting Dan Solar, leader of our RESPA practice group.

We also plan to do more to help borrowers deal with student loan debt which now exceeds $1.31 trillion and is turning the dream of obtaining a college degree into a nightmare for American families. According to Emily White, director of our student loan practice group, the Department of Education’s decision to relax oversight of the industry has freed lenders to use increasingly aggressive tactics against borrowers. Although people who took out loans backed by the government have few options, we can help students who borrowed from National Collegiate and other private lenders because those companies, like their counterparts in the mortgage industry, often commit sloppy mistakes and paperwork errors that make it difficult if not impossible for them to collect. Emily and I will have more to report during 2018.

Which is a great segue into an area in which we made great progress during 2017 – disability rights law. I’m extremely proud of the work we’ve done to convince companies to bring their digital platforms into compliance with the Americans With Disabilities Act and similar state statutes.

Here’s a special note to my friends who practice corporate defense law and their clients – complying with the ADA is a win/ win. Enabling people with disabilities to purchase goods via your websites and apps will create millions of new customers and generate billions in profits. Don’t take my word for it, just ask Target, the company’s reaped huge profits since becoming a leader in accessibility.

Those are just a few areas where we have and will continue to step in and use the law to do what government won’t – protect and enhance our clients’ ability to achieve their dreams.

Knowing we have the power to do it has made me prouder than ever to be a lawyer.