Dramatic Victory Over Wells Fargo Bank

By Rex Phillips, Attorney - April 27, 2017

Within the last week, Consumer Litigation Law Center prevailed in court in dramatic fashion against corporate behemoth Wells Fargo Bank, N.A. by obtaining a judge’s order preventing the bank from proceeding with an unlawful foreclosure sale of our clients’ home.

Our clients, an elderly couple who were in desperation to stop the imminent sale of their home, sought our legal representation to stand in the way of Wells Fargo’s callous and unlawful march toward foreclosure with a mere few days remaining until the scheduled sale date. Despite the fact that our clients had been seeking reasonable alternatives to foreclosure by submitting to Wells Fargo a loan modification application which evidenced a significant change in their financial circumstances, Wells Fargo blatantly disregarded their good-faith application and refused to postpone or cancel the pending sale.

With a mere few days left before the sale, Consumer Litigation Law Center immediately filed a lawsuit against the bank and also filed an ex parte application for a Temporary Restraining Order to be heard in front of the judge on the very morning in which the sale was set to take place. After reviewing our motion and after hearing arguments, the judge granted our motion and ordered Wells Fargo to halt the foreclosure sale, saving our clients home with only an hour remaining before the scheduled sale.

Through motion and argument, we made the case that under the Homeowner Bill of Rights, California Civil Code section 2923.6(g) provides that the mortgage servicer cannot proceed with foreclosure while a borrower is in loan modification review with a complete loan modification application submitted. But, the loan servicer shall not be obligated to evaluate applications from borrowers who have already been evaluated or afforded a fair opportunity to be evaluated for a first lien loan modification unless there has been a material change in the borrower’s financial circumstances since the date of the borrower’s previous application and that change is documented by the borrower and submitted to the mortgage servicer. Given that our clients had already provided Wells Fargo with a loan modification application evidencing a material change in their financial circumstances, the judge agreed that Wells Fargo’s attempt to sell the property was unlawful and in direct violation of California statutory law.

While Consumer Litigation Law Center has achieved hundreds of similar successes against all major banking institutions, this victory was particularly dramatic given the blatant statutory violations by Wells Fargo and the literal ticking clock that we were up against.