Tuesday, September 11, 2012

Wells Fargo OKs Loan Modification, Then Forecloses On Home Anyway Without Telling Homeowner; Screw-Up Discovered When Latter Finds Prospective Buyer

In Moreno Valley, California, KCBS-TV Channel 2 reports:

  • A Moreno Valley woman tried to sell her home, only to find out the bank mistakenly foreclosed it.

    Real estate agent Lisa Duarte had been showing Lily Diaz’s home in Riverside County. The house, priced at $235,000, got two quick offers. However, a title search showed Wells Fargo, not Diaz, owned the home.

    The property was actually foreclosed on in January of this year and when I found that out, I called my client and let her know,” said Duarte.

    Diaz said she was shocked because she has the paperwork that shows she completed a loan modification with Wells Fargo in January. She said she made every monthly payment on time since it was approved.

    Wells Fargo apparently didn’t let title know the modification was accepted and they let the foreclosure proceedings continue,” said Duarte. “Wells Fargo knows they made the mistake. They don’t know how to fix it.”

    As it stands now, the home can’t be sold. “As far as I’m concerned, we lost two good offers because of (the situation),” said Diaz. Wells Fargo called Diaz to work out the mix up.

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