The California law firm of Harwood Feffer, LLP has announced that it has filed a class action lawsuit against Wells Fargo and its mortgage servicer America's Servicing Company (ASC) for inducing homeowners into defaulting on the mortgages by telling them they would not be eligible for a mortgage modification while they were current on their payments. The lawsuit, filed in the United States District Court for the Northern District of California, claims that when borrowers who were current on their mortgages inquired about the possibility of the mortgage modification, they were told that they must be several months behind on their payments before their mortgage could be reviewed for a modification!A statement issued by the firm explained the underlying reasons they believe servicers have committed these frauds, "as a loan servicer, ASC generates a significant portion of its revenue from fees, penalties, and interest collected on non-performing loans it servicers...it is in ASC's financial interest to avoid, delay, and deny loan modifications and to pursue foreclosures because doing to will lead to increased revenue." The HAMP guidelines clearly set out that borrowers who are not in default but are in distressed are eligible if they can demonstrate a financial hardship.
If you are facing a Florida Foreclosure Lawsuit or have experienced circumstances similar to those described above, contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer today to have your case reviewed.
