One of the things I do for my clients to help them avoid foreclosure is assist them in getting their mortgage loan modified.
It’s a tedious and often complicated process. However, it can mean the difference between getting evicted from your own home by its new owner or staying in your home with a more affordable monthly payment.
Recently a few of my clients got the following letter from Wells Fargo:
Settlement Offer Letter from Wells Fargo Home Mortgage
Subject: Important information about a settlement offer
Prior mortgage account number: XXXXX
Property Address: xxxx
We’re writing to provide you with the important information regarding the above-referenced mortgage account. During a recent review of your former mortgage, we determined we may not have provided you with the approval …<cut out>…participated in a modification review.
What you need to know
Due to this review finding, Wells Fargo agrees to pay you the amount of $X,XXX.
We’ve enclosed the check in the amount of $X,XXX. The check can be cashed once all parties listed endorsed it.
We can not provide tax or legal advice. Please consult a tax professional and/or legal advisor to understand the income taxes may be affected by this activity.
I’m here to help
If you have any questions about the information in this letter or need further assistance, please call me 515-414-2630, Monday through Friday, 7:00 a.m. to 4:00 p.m. Central Time.
Wells Fargo Home Mortgage
At the moment there is nothing I can find on the net regarding the story behind this letter. Is it better to accept the offer and cash the check? Is Wells Fargo getting sued for mishandling mortgage modifications? Is there potentially a bigger slice of a much larger pie to be had for those who decide not to take Wells Fargo’s settlement offer?
I’ll do a follow-up post when I know more, but in the meantime please discuss in the comments. Did you receive this letter? If so, how much were you offered? Were you denied for a loan modification?