Families claim Wells Fargo gyped their parents over reverse mortgages

Bloomberg news reports, "Wells Fargo Sued Over Reverse Mortgage Policies by Borrowers "

“Wells Fargo & Co. was accused in a group lawsuit of ignoring federal rules on reverse mortgages and forcing homes into foreclosure instead of giving heirs a chance to buy them.

“Estates and surviving spouses have the right to purchase properties at 95 percent of appraised value after the death of a borrower who took out a federally insured reverse mortgage, lawyers for a California man said in the complaint filed Aug. 3 in federal court in San Francisco.

“Wells Fargo hasn't been notifying heirs of this right and has been starting foreclosures if demands aren't met for repayment of the full mortgage balance, according to the complaint filed by the son of a California homeowner. The plaintiff, Robert Chandler, also sued the Federal National Mortgage Association, or Fannie Mae.”

Wells Fargo alleges that it complied with HUD guidelines; guidelines that only came into effect in April 2011.

Read the full story.

For your next title order or if you have questions about what you see here, contact
Stephen M. Flatow, Esq.,

Stephen's Title Agency, LLC,

165 Passaic Avenue, Suite 101
Fairfield, NJ 07004, Tel 973-227-4724 - Fax 973-556-1628
E-mail Stephenstitle AT comcast.net - www.stephenstitle.com