Wells Fargo Finds Foreclosure Paperwork Problems; No Freeze Planned

Wells FargoWells Fargo, the nation’s second largest mortgage servicer, concedes that some foreclosure affidavits “did not strictly adhere to the required procedures,” and is submitting additional paperwork on 55,000 foreclosure cases in the 23 states with a judicial process.
The admission came after weeks of asserting that there was nothing wrong with its foreclosure paperwork. Other major lenders have admitted some mistakes and issued partial and temporary foreclosure freezes.
Despite the paperwork flaws, Wells Fargo said no homeowner has been wrongly evicted or foreclosed.
“The issues the company has identified do not relate in any way to the quality of the customer and loan data; nor does the company believe that any of these instances led to foreclosures which should not have otherwise occurred,” Wells Fargo said in a statement.
The lender said the paperwork irregularities will not require any moratorium on proceedings. Other top lenders, including Bank of America and JPMorgan Chase, have halted tends of thousands of foreclosure cases pending reviews.
Wells Fargo “has identified instances where a final step in its processes relating to the execution of the foreclosure affidavits (including a final review of the affidavit, as well as some aspects of the notarization process) did not strictly adhere to the required procedures,” Wells Fargo said in its statement.
The lender did not link its paperwork problems to the practice of robo-signing foreclosure affidavits, which is under investigation by all 50 attorneys general and bank regulators.
Wells Fargo said the submission of additional paperwork will begin immediately with the goal of completing the process by mid-November.
“If the company is unable to complete an individual court filing by the designated court review date, it will request a court extension to assure the file contains a supplemental affidavit before the judge rules on the case,” Wells Fargo said. “Additionally, Wells Fargo reaffirms that it does not plan to institute a moratorium on foreclosure sales.”

8 thoughts on “Wells Fargo Finds Foreclosure Paperwork Problems; No Freeze Planned

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  • October 28, 2010 at 6:49 pm

    Well my house is in foreclosure because they said I have ZERO income. We provided income statements up and beyond what is needed and was told we qualify for modification because of increased income. Hmmm…

  • October 28, 2010 at 7:26 pm

    Nobody has brought up the distinct possibility that the loan servicers may well have bundled and sold each of these loans MORE THAN ONCE to differernt investors via the securitization process. THIS COULD BE THE REAL REASON THAT THERE IS NO DOCUMENTATION / PAPER TRAIL. The non-existent documentation and accounting is entirely consistent with this scenario. This means that the entire plan was a true Ponzi scheme in the worst sense. In other words, rather than selling the loan once to investors, as we have all naively been assuming, there is no reason to believe that they did not double-dip or quintuple-dip and sell the exact same loan to completely new buyers. THIS IS A LEVEL OF FRAUD THAT THE AMERICAN PUBLIC HAS NOT YET CONTEMPLATED.
    There are no new laws that are necessary. All that is necessary is for the states to FOLLOW THE EXISITING LAWS which have been around much longer than any of us, or any of the banks themselves. These laws were devised to deal with all property frauds, including the current foreclosure frauds. No more bailouts. Let the chips fall where they may.

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  • October 29, 2010 at 2:06 am

    Foreclosure Frauds, Wells Fargo-the Fox in Charge, and Victimization
    I believe that Wells Fargo’s announcement about refiling 55k foreclosures is because covering up wrongful foreclosures is no longer effective. Res ipsa loquitur foreclosure frauds occurring here in Louisiana involving Wells Fargo, Freddie Mac, certain foreclosure mills, and certain corrupt judges make it apparent that Wells Fargo CANNOT be trusted to fix its foreclosure wrongdoings, no more than an addict can be trusted to self-reform.
    Mortgage lenders are not required to know laws – attorneys are! Most of the time, the attorneys made severe errors – sometimes intentionally, since errors help keep the billable tab going, and commit the very frauds that provide basis, defenses, and reasons to attempt negotiating mortgage contracts.
    Compare: blighted neighborhoods and foreclosure deed conveyances to non-existent mortgage lenders; bankruptcy “Lift Stay” motions that “lack standing,” and names on “proof of claims” different from ‘lift stays’ “movers”; and illegal property deeds.
    Also, foreclosure lawyers have failed to “effect service,” failed at various substantive Civil Procedure requirements which make it not lawful to proceed with that lawyer’s case until those errors are corrected. As such, homeowners are not to be blamed for refusing to cooperate with erroneous and fraudulent confiscation of their homes!
    Often, foreclosure delays are because of the lawyers, but the lawyers keep that fact from clients. It is usually always foreclosure lawyers’ serious mistakes, errors, and frauds that supply reasons, defenses, and basis for anyone with a brain / anyone who prefers to not be homeless to attempt renegotiating his or her mortgage contract.
    Also, property owners seeking debt reorganization through Chapter 13 Bankruptcy are not to be blamed for contesting a false “proof of claim” or false “Lift Stay” motion. As such, countless foreclosure lawyers owe a lot of money to their clients for fatally botching foreclosure cases.
    Scoffer spew anger about others living ‘rent free’ have absurd responses about ‘White Collar foreclosure fraud’ – which includes confiscating distressed properties via falsified court bankruptcy and state court pleadings.
    Samples of Wells Fargo, Freddie Mac, Lehman Brothers foreclosure debt collector attorneys (foreclosure mills), and judicial corruption are posted on my website. Like the matter of the “Bailey” property foreclosure filed under Lehman Brothers, but the Hurricane Katrina insurance money was demanded by Wells Fargo. Also, posted is how Wells Fargo (WF) filed a false IRS form 1099-A despite that Wells Fargo did not foreclose. http://newsblaze.com/story/20101028181052lawg.nb/topstory.html

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