Legal Question in Banking Law in Alabama

I was declined a mortgage modification after paying it on time for 10 months. The contract I signed said if

i paid on time for my three month trial I would get the modification. Isnt this breach of contract and do I have recourse.? When they accelerated the loan I paid it from my retirement funds.

Now they want more money for escrow but I beleive it was paid in the accelerated amount. I had a lawyer help me with a letter to Wells Fargo but it was not on his stationary and they have not responded. Do I have any recourse? A mortgage that was once 1200 is now going to be 1785. I cannot afford this at all. I was going to save the house in a chaoter 7 but it may turn into a chapter 13. So I would then be paying back creditors. I just cannot afford this plan


Asked on 1/12/11, 9:09 am

1 Answer from Attorneys
James Patterson Underwood & Reimer, P.C.

You may have a breach of contract claim and fraud against Wells Fargo. My firm has filed numerous cases similar to your situation for the past year in Federal and State court and continuing to do so. The mortgage companies are using in house modifications and the HAMP government modification program to foreclosure on your home. Some of my clients have sent in their mortgage modification paperwork 10-15 times and are told its lost or cant be found. Some have even been modified and still face a foreclosure. Please contact my office immediately to discuss your options as we may be able to help you in this matter.

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Answered on 1/17/11, 10:16 am


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