Johnstone Carroll, LLC
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F. Inge Johnstone
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class action Archives

Court Says Class Action May Proceed Against Lender for Failure to Modify Loan

In Wigod v. Wells Fargo Bank, the Seventh Circuit of the United States Court of Appeals held that a mortgagor could pursue her class action lawsuit against her mortgage company for refusing to modify her mortgage under the federal HAMP program. In the lawsuit, Ms. Wigod alleged that she entered into a Trial Period Plan (TPP) with Wells Fargo and made all payments under the plan. After the trial period was over, Wells Fargo refused to modify her mortgage and demanded that she immediately pay her past due balance plus fees and interest. Wells Fargo repeatedly sent her letters threatening to foreclose.

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