• DYE CULIK PC | Consumer Protection Division

Massachusetts Court to Wells Fargo: HAMP Loan Mods are Enforceable

Federal Judge F. Dennis Saylor, IV of the Worcester division of the United States Court for the District of Massachusetts has recently denied an attempt by Wells Fargo to dismiss homeowners’ claims against it. The issue was whether the trial loan modifications sent by Wells Fargo to homeowners were enforceable contracts.

(Culik Law has a similar case pending in front of Judge Saylor. I expect his decision on our case to be the same, and to allow our client to continue with his claims against his mortgage company.)

Copy of decision here: Bosque v. Wells Fargo

Wells Fargo hemmed and hawed, claiming that the loan-modification agreements it has sent to thousands of homeowners here in Massachusetts were not real contracts, trying to evade responsibility for its widespread non-compliance with the federal Home Affordable Modification Program (HAMP), a loan modification program intended to help up to four million homeowners.

The army of corporate attorneys Wells Fargo hired at the law firm K&L Gates argued the agreements “were never intended to be guarantees that the borrowers would receive permanent modifications.”

Dismissing Wells Fargo’s argument, Judge Saylor looked to the agreements that the homeowners had signed: “Here, it is plain that the [trial loan modifications] were offers, and that plaintiffs’ signatures and subsequent monthly payments under the terms of the TPP constituted acceptance of those offers.”

Another Massachusetts federal judge recently came to the same decision in another case. (Available here: Durmic v. JP Morgan Chase.) Massachusetts is fast becoming the leading jurisdiction to establish homeowners’ rights under the HAMP program.

What does this mean? First, it means that if you are a Massachusetts resident who entered into a trial loan modification and made all your payments, but your bank canceled your loan modification, there is a good chance that you can go after your bank for breach of contract. Second, it means that homeowners may be able to sue their banks for other violations of the HAMP program (such as not timely responding to their requests for evaluation within 30 days, which is one of the violations that almost everyone has had, but is rarely discussed).

If you have had a similar experience with your bank, have been given the run-around, and denied for a loan modification or had the foreclosure process started against you, protect your rights and contact an attorney to determine whether you may have a case you can bring to save your home. You can contact Culik Law at www.culiklaw.com/contact.

#loanmodification #mortgage #HAMP #consumerlaw #WellsFargo