Legal Question in Real Estate Law in California
On Nov.29th 2010 Wells Fargo Foreclosed on our home.I have been working with Wells Fargo trying to get a loan modification. On Nov. 15 while speaking with my assigned "Home Preservation Specialist" he requested from me over 30 additional pages of financial info.and told me to send everything I could via fax A.S.A.P. . and I did. Since they were in the process of reviewing our documents to see what we may qualify for, he assured me that he would summit the necessary documents needed for a postponement of the sale date and told me not to worry! On Nov. 22nd. 2010, I contacted him to confirm postponement and he stated that not all of my docs had been received by the 19th and he requested postponement of sale again. Stating that he had all docs and once again not to worry, these things can take months to work out. On the 29th I was asked by another Wells Fargo employee for more info and I faxed that as well. On Dec. 3rd, 2010 I received a letter from Premiere Asset Services that the foreclosure was completed. I was blindsided . I took that Wells Fargo employees' word in good faith and in doing so, I was deprived the right to appear at the foreclosure sale and potentially cure the default or pay off the entire remaining balance.
3 Answers from Attorneys
I am sorry for what happened, but the biggest hurdle you have is whether you suffered any damages. Unless you can prove that you could in fact pay off the loan or that the modification would have gone through but for some Wells Fargo employee having lost some of your papers or been otherwise negligent, then you can not show that the actions of Wells was a direct cause of your losing your house. You might be able to show that they did not sign the right pay work so the sale is voided, but then you know they will not give you a modification. You need to see an attorney who handles these modifiction cases.
Mr. Shers is right about your hurdles. I would add to his list of issues that you will have no recovery if your property was "upside down," meaning if the debt on it was more than it was worth. You are also going to have to prove a "he said - she said" case, since Wells will deny the employees ever told you anything like what you say they said. So unless you had equity in the house, you could have saved it but for the misrepresentations of the Wells employees, AND you can prove the Wells employees gave you the assurances you say they did, you don't have any real chance of a successful lawsuit. Quite frankly I think Wells is one of the worst lenders in this regared and I would like to find a plaintiff to represent to go after them, but unless you have a solid case, there's not really anything I could do for you.
I advise my clients never to accept a lender's employee's word over the telephone that a trustee's sale is going to be continued. The only thing that would have legally bound them is written notice that the trustee was going to postpone the sale. The specific statute that governs postponement of the trustee's sale is Civil Code section 2923g. You can read it here:
http://law.onecle.com/california/civil/2924g.html
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