About the Pennington v. Wells Fargo Class Action
Oct 03 2011 14:10 Filed in: Wells fargo | class action | texas home equity | Home equity loan modification
My Pennington v. Wells Fargo class action in federal court in Austin, Texas, concerns MODIFICATIONS TO TEXAS HOME EQUITY LOANS that MAY VIOLATE THE TEXAS CONSTITUTION in the following ways:
- past due interest was included in a new principal amount
- the modified loan exceeded 80% of the fair market value of the home.
If you have a home equity loan in Texas, and a lender or servicer modified that loan by including past due payments into a new principal amount, contact me to discuss it. I have filed a class action in federal court in Austin, Texas, relating to allegations that Wells Fargo not only modified home equity loans illegally, but then tried to cover the problem up instead of going back to fix the improper modifications. The allegations are that Wells Fargo would tell borrowers with home equity loans that were already modified that these borrowers were "in foreclosure," but that the borrowers would be permitted to short-sell their home or give a deed in lieu of foreclosure. Thus, in addition to modifying loans illegally in the first place, Wells Fargo is alleged to have misled borrowers with those bad mods into dumping their homes. Wells Fargo, it is alleged, was aware that it could not foreclose on those borrowers. The case is Pennington et al. v. HSBC Bank and Wells Fargo Bank, Civil Action No. 1:10-cv-785 (W.D.Tex.). Plaintiffs are currently seeking a TRO and Prelim. Injunction to halt Wells Fargo's alleged improper acts.