On October 25, 2012, Myron M. Cherry & Associates, LLC filed a class action lawsuit against Wells Fargo Bank over its practices relating to mortgage modifications. The suit alleges that, in spite of receiving billions of dollars in taxpayer bailout money, Wells Fargo actively thwarted efforts of consumers to participate in federal loan modification programs. More specifically, the suit alleges that Wells Fargo routinely advised customers that they must miss mortgage payments or otherwise be in default on their loan in order to qualify for a loan modification under the Federal government’s Home Affordable Modification Program (“HAMP”). When customers followed this advice, Wells Fargo charged customers substantial fees and penalties, reported delinquent payments to the credit reporting agencies and, ultimately, failed to actually modify the mortgage – leaving customers in need of assistance in an even worse position. Click here to read the lawsuit. Click here to read the Chicago Tribune’s coverage of the lawsuit. For more information about this case, or if you have been the victim of this practice or any other illegal mortgage practices, please contact us at (312) 372-2100.
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