Wells Fargo Not Adhering To Default/loss Of Good Standing Definition Hamp

kacee

LoanSafe Member
Jun 21, 2017
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In July of 2016, I received a permanent home modification through Wells Fargo Home Mortgage. In May 2017, I incurred a large expense (automobile related) and therefore, could not meet all my obligations. While reviewing my new mortgage-mod with the home preservationist in June of 2016, I recalled the definition of good standing, and the loss of same being discussed.

In order to be considered in default/lose good standing, I needed to be behind a total of 90 days (3 months) in mortgage payments. With that in mind, I referred to my mortgage documents and within the document, the 90 day good standing clause was there. I decided to skip May’s payment, with the knowledge I would NOT be considered in default.

I reached out to Wells Fargo TWICE and discussed the situation with two representatives. The last time being June 19th, 2017. Not only was I assured the situation was “fine” but I was offered a repayment plan (6 months) to repay May’s payment as I “have been good with my payments”.

On June 20th, I received a notice of default/intent to foreclose/accelerate from Wells Fargo. I immediately called and spoke with Krystal who informed me I was in default and had until Jul 20th to “cure it”. I told Krystal that my mortgage modification says I cannot be in default unless I am a total of 90 days behind, and I am only 30.

Krystal would not address the issue at all, refused to transfer me to a supervisor and kept on reciting state statues as it pertains to homeowner notification of foreclosure. Wells Fargo has not responded to my written correspondence addressing the default definition as well. They have sent a “representative” out to my home this Sunday, to assure I was still in the house. He circled the block twice, slowed down, then came to a complete stop in front of my home. You can clearly see by the condition of my house, that it is not abandoned.

My car was in the driveway, sprinkler on etc. there was no need to make it so obvious. Wells Fargo requested Navacor Solutions to reach out to me for “financial coaching” “as part of our modification agreement” Pat Brown was the representative and repeatedly asked for my financial information, expenses, earnings.

When I refused to comply, she informed she would be telling Wells Fargo about my refusal to participate. It should be noted that I am prepared to make full amount due on my mortgage July 3rd, 2017. However, this does not excuse the fact they are in clear violation of the mortgage modification and continue to use deceptive practices to incite fear into customers.
 
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Moe Bedard

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Aug 10, 2007
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Hello,

The 90 day good standing clause means that you are in "good standing" on the temporary loan modification by making "all the payments on time in a 90 day period." It does not mean you can miss payments in a 90 day period.

They are glorified debt collectors. Nothing more and nothing less. Their job is to scare people into paying their debt so they do not lose money and make money for shareholders. They are not there to help people.
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
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In July of 2016, I received a permanent home modification through Wells Fargo Home Mortgage. In May 2017, I incurred a large expense (automobile related) and therefore, could not meet all my obligations. While reviewing my new mortgage-mod with the home preservationist in June of 2016, I recalled the definition of good standing, and the loss of same being discussed.

In order to be considered in default/lose good standing, I needed to be behind a total of 90 days (3 months) in mortgage payments. With that in mind, I referred to my mortgage documents and within the document, the 90 day good standing clause was there. I decided to skip May’s payment, with the knowledge I would NOT be considered in default.

I reached out to Wells Fargo TWICE and discussed the situation with two representatives. The last time being June 19th, 2017. Not only was I assured the situation was “fine” but I was offered a repayment plan (6 months) to repay May’s payment as I “have been good with my payments”.

On June 20th, I received a notice of default/intent to foreclose/accelerate from Wells Fargo. I immediately called and spoke with Krystal who informed me I was in default and had until Jul 20th to “cure it”. I told Krystal that my mortgage modification says I cannot be in default unless I am a total of 90 days behind, and I am only 30.

Krystal would not address the issue at all, refused to transfer me to a supervisor and kept on reciting state statues as it pertains to homeowner notification of foreclosure. Wells Fargo has not responded to my written correspondence addressing the default definition as well. They have sent a “representative” out to my home this Sunday, to assure I was still in the house. He circled the block twice, slowed down, then came to a complete stop in front of my home. You can clearly see by the condition of my house, that it is not abandoned.

My car was in the driveway, sprinkler on etc. there was no need to make it so obvious. Wells Fargo requested Navacor Solutions to reach out to me for “financial coaching” “as part of our modification agreement” Pat Brown was the representative and repeatedly asked for my financial information, expenses, earnings.

When I refused to comply, she informed she would be telling Wells Fargo about my refusal to participate. It should be noted that I am prepared to make full amount due on my mortgage July 3rd, 2017. However, this does not excuse the fact they are in clear violation of the mortgage modification and continue to use deceptive practices to incite fear into customers.
You have the right to redeem your home in most non-judicial states even if the Trustee has made a date for forclosure. Your are in forclosure as the agent was sent to your home to photograph and to verify occupancy.
 

isisis

LoanSafe Member
Jun 22, 2010
1,793
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North bay
Jeffrey? OMG, good to hear from you my friend. Been awhile. Turns out I may be employing your favorite doctrine, res ipsa loquitor, in my ongoing litigation. That's kind of a long story and I won't hijack this thread with it.

Kacee,

I'm not familiar with a good standing clause or how it specifically applies to your obligations under the loan contract however anyone who falls one month behind on payments is technically in default. Making timely monthly payments is a condition (an essential obligation) of the loan contract. In my state California they can't initiate foreclosute until you fall 90 days behind however even then they need to first send a notice of acceleration. Depending on the state you live in there may be other statutory requirements that must be met before sending a notice of default.

That doesn't of course mean they'll comply with those requirements or the terms of the contract. Servicers benefit more from placing you in default by imposing late charges, fees, inspections and then if you're unable to become current and pay all the extra amounts they benefit from foreclosing.

Banks take advantage of homeowners all the time by relying on the disparity of power, knowledge and economics. Be very cautious in your dealings with them and don't assume that they'll be honest with you.