Avid Law Center

November 29, 2011 12:00 ET

Homeowners Take Wells Fargo to Court Over Denied Modification

Lawsuit Filed by Orange County-Based Real Estate Litigation Firm Seeks Damages Against Wells Fargo and Others to Reinstate Loan Modification Rescinded Following Take-Over of Countrywide Loan

ALISO VIEJO, CA--(Marketwire - Nov 29, 2011) - Avid Law Center continued its fight for distressed homeowners in a recent lawsuit against Wells Fargo, Bank of America, and others involved in the alleged unlawful denial of the homeowner's mortgage restructuring. The Orange County, California-based real estate and litigation law firm raised a number of potential legal violations, including improper securitization of the homeowner's loan, the refusal to honor an originally granted loan modification, and loan servicer interference in contractual relations.

"We think it's clear that our clients are prime candidates for the Making Home Affordable Program, they did everything asked of them by the banks. They initially had a trial modification granted to them, then, for some unknown reason, it was improperly denied," said Timothy L. O'Reilly, senior trial attorney with Avid Law Center. "Their situation has left them with little alternative other than to pursue litigation to try to protect their rights."

The homeowners, like so many in today's economy, were in need of debt relief due to financial hardship. They applied for a loan modification and explained their situation to their original lender, Countrywide Home Loans. After doing this, they learned for the first time that the family mortgage had been sold off to investors through a Wall Street securitization pool. Countrywide was now just a "servicer" of their loan. They also learned that they could not communicate with the real, true, owners of their loan and that they could only deal with the loan servicer.

Countrywide told them to begin defaulting on their loan before speaking with them about obtaining a modification. Not knowing that the servicer got more fees if the loan was in default, the homeowners did as they were directed. After entering initial default on their mortgage, they were granted the promised trial modification plan. The homeowners complied with all terms of the trial modification, until Bank of America overtook Countrywide. Bank of America then refused to honor the modification and denied all further requests, claiming the "investor" of the loan, Wells Fargo Bank, was refusing to participate in the Making Home Affordable Program. The homeowners could not contact the "investor" to see what had suddenly changed.

"Too many homeowners have fallen victim to improper mortgage securitization practices. Combine this with the seemingly endless roadblocks to modification that some banks have set up, and you have a federal HAMP program that is nearly unattainable," said Aron Rofer, president, CEO and managing attorney for Avid Law Center. "Even when a modification is granted, some banks and servicers are finding it more profitable to go back on their word and break their end of the deal. We are fighting to make sure homeowners are treated fairly, reasonably, and receive debt relief where needed. The lawsuit filed on behalf of our clients seeks to make them whole and receive the modification they were so deservedly promised."

For more information, please visit

About Avid Law Center
Based in Orange County, California, Avid Law Center is a full service Real Estate Litigation Law Firm representing consumers throughout the state. With over 30 years of legal experience, as well as significant experience in business and finance, Avid Law Center challenges banks on behalf of their clients to stop foreclosure and reduce clients' mortgage payments to an affordable amount.

The information in this release is for general information purposes only. Nothing in this release or on the Avid Law Center website or blog should be taken as legal advice. Prior successes are no guarantee of future performance. Litigation is inherently uncertain and results in litigation are never guaranteed.

Contact Information