Couple Loses Home To Foreclosure Despite Being Current On Loan Modification Payments; Media Intervention May Cause Lender To Reverse Action

In Colorado Springs, Colorado, KXRM-TV Channel 21 reports:

• A Colorado Springs family has their house auctioned off from under them. But they may get to stay in their home now that FOX21 News is asking questions. The family bought the home near the Air Force Academy in 2005. Then last year the man lost his job and the family fell behind on their mortgage. They were able to get on a payment program through the mortgage company and had been keeping up the payments ever since. Then last week they were told their house had been sold at auction.

***

• When [Tammy and Flavio] Bugarin[] asked why the home had been foreclosed when they had been keeping up on the payment plan Wells Fargo didn’t have an answer. "Wells Fargo showed absolutely no paperwork that we were on a program," Flavio said. But after FOX21 News called Wells Fargo, officials said they would rescind the foreclosure sale and get the Bugarins on another payment plan.

For more, see Mortgage mess hits Springs family.

In a related story, see ProPublica: Chase and Other Servicers Leave Many in Loan Mod Limbo; Treasury Threatens Penalties.