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Wells Fargo reviews 55,000 “improperly filed” foreclosure filings

By
Real Estate Agent with Sterling Fine Properties AZDRE# BR553129000

Two weeks ago, I blogged about the foreclosure freeze. In that entry for Realtor.com, I noted that - as of the posting date - Wells Fargo had denied that any of their filings were inaccurate. This was somewhat difficult to believe and today Wells Fargo announced plans to correct and resubmit up to 55,000 "improperly filed documents."

In a Wells Fargo statement issued today, they said that "the company has identified instances where a final step in its processes relating to the execution of the foreclosure affidavits (including a final review of the affidavit, as well as some aspects of the notarization process) did not strictly adhere to the required procedures." An MSNBC.com report today noted that "a Fort Mill, S.C.-based Wells employee said in a deposition taken last March that she signed between 300 and 500 foreclosure documents per day."

Wells Fargo added in their official statement that they have started to correct the 55,000 questionable files, and "out of an abundance of caution," planned to resubmit them in 23 states where foreclosures require court approval. They also maintained that the "underlying information in the loan files was accurate and that the bank had not improperly foreclosed on any troubled homeowners." Additionally, they reiterated that they have no plans to temporarily freeze foreclosure sales, as Bank of America and GMAC have.

Yes, 55,000 improper foreclosure filings is not a hugely significant number when compared to the over half a million loan modifications that they have handled from January 2009 to September 2010. However, 55,000 is a significant number. And it's hugely significant to those homeowners. Each loan needs to be treated separately and deserves attention to detail. That's what is missing here.

Read more about "Wells Fargo reviews 55,000 "improperly filed" foreclosure filings," at MyPhoenixmls.com

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I specialize in selling Phoenix real estate -- Scottsdale homes and Phoenix homes, including Phoenix short sales and bank owned homes. To see my listings and learn more, visit www.MyPhoenixMLS.com.

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Eric Martell
RE/MAX Properties SW, Inc. - Orlando, FL
Ph.D.

Good post, Bob!  The issue of robo-signed documents still ignores the possible legal problems caused by attempting to bypass the recording process by using MERS to simultaneously be the mortgagee and assignee for the investor.  IMHO Wells is trying to avoid the MERS issue, since it can't be dealt with as easily as the robo-signing problem.

Keep up the good work in reporting this issue.  It directly impacts our whole industry!

Oct 30, 2010 03:25 AM
Teresa Cooper
Home Solution Real Estate Services - North Charleston, SC
SC Lowcountry - Charleston, Dorchester, Berkeley

Interesting post, Bob.  I find all these numbers absolutely staggering!  But what impacts me most is when I am working with the number 1.  1 homeowner about to lose their home, 1 family who is struggling with unemployment, utilities, food and groceries, taking care of their children.  1 family who is about to be homeless.   1 mom or dad who is doing all they can to keep their home, but can't find anyone in the "foreclosure department" or "HAFA resource" center that can help them.  It's the 1 that matters in all these reports.

Oct 30, 2010 04:30 AM