Are Wachovia Loan Modifications Being Honored by Wells Fargo?

Borrowers are reporting incidents to us where they signed a temporary loan modification agreement with Wachovia but were later rejected for a permanent loan modification by Wells Fargo which purchased Wachovia.

Many borrowers signed temporary loan modification agreements with Wachovia.  These borrowers met the terms of the their temporary loan modification agreement.  These borrowers anticipated that their loan modification agreements would be made permanent.  However, it is being reported that when Wells Fargo purchased Wachovia, loan modification requests that were pending with Wachovia were significantly delayed.  One borrower caught in the middle, reported that Wells Fargo had a hard time even finding his loan and was unable to accurately and timely credit his payments.  When this particular borrower requested that his loan modification become permanent, he was informed by Wells Fargo that the "investors" would not agree to make his temporary loan modification permanent.  

We reported here on the class actions filed against Bank of America and Wells Fargo for failing to make temporary loan modifications permanent.   The theory in those cases is fairly simple.  Borrowers were promised permanent loan modifications if they complied with the terms of their temporary loan modification agreement.  The BOA class action indicates that the temporary loan modification agreement stated as follows:  “If I am in compliance with this Loan Trial Period and my representations in Section 1 continue to be true in all material respects, then the
Lender will provide me with a Loan Modification Agreement, as set forth in Section 3 [below], that
would amend and supplement (1) the Mortgage on the Property, and (2) the Note secured by the
Mortgage.”

Hopefully borrowers will obtain some help through these court cases.  They certainly aren't obtaining much help from the banks they bailed out.