Roseville, California (PRWEB) September 30, 2011
UFAN Legal Group, Pc, DBA: United Foreclosure Attorney Network (UFAN) filed a lawsuit in Sacramento Superior Court (case number 34-2011-00110146), alleging in element that the unfavorable amortization mortgages acquired by Wells Fargo had been predatory and injured borrowers.

Golden West Financial was 1 of the countrys leaders in the issuance of Choose-a-Spend loans. These loans are negative amortization loans, meaning: the minimum monthly payment may not cover all of the accrued interest on the loan. The unpaid interest is then added to the principal balance of the loan. Not only is the borrower not paying down the balance, but the balance is really expanding as interest remains unpaid and the balance to which interest applies grows over time. A report by the Charlotte Observer specifics how Wachovia inherited Golden West’s choose-a-spend mortgages when it acquired the California bank in 2006. Wachovia was then acquired by Wells Fargo in 2008. As reported in the media, there have been widespread allegations that Golden West and Wachovia misrepresented these loans to clientele. It is alleged in the UFAN complaint that even prime borrowers with great credit have been placed in these subprime loans. The complaint states that these borrowers have been frequently told that they have been getting placed in the most advantageous loan available to them. According to the filing, the motivation for placing prime borrowers in very predatory subprime loans had been the high origination charges paid to brokers and agents who originated these loans.

The California Lawyer Common brought claims against Wells Fargo for these damaging amortization loans, the Charlotte Observer reported. At the time, the then attorney common, Jerry Brown, stated, Customers have been provided adjustable-rate loans with payments that mushroomed to amounts that eventually thousands of borrowers could not afford. When the payments ballooned and property owners defaulted, borrowers had been foreclosed and dispossessed of their properties, the report states. In 2010, Wells Fargo settled with the Lawyer General for liability surrounding the improper practices of Golden West and Wachovia. According to the report, Wells Fargo agreed to spend $ 32 million in restitution to property owners who had lost their residences to foreclosure, as effectively provide loan modification worth $ 2 billion for borrowers who had choose-a-spend loans with Golden West or Wachovia.

Earlier in December, as reported by Reuters, Wells Fargo settled a class action suit brought on behalf of borrowers injured by the unfavorable amortization loans issued by Wachovia amongst 2003 and 2008. Plaintiffs alleged that the loans violated federal truth in lending laws because the loan documents failed to adequately disclose the prospective for the loan balance to really enhance over time. As element of this settlement, Wells Fargo paid out $ 50 million and agreed to modify the loans of borrowers who are nonetheless in their properties, the report states.

According to the complaint filed by UFAN, Wells Fargo is not appropriately functioning with distressed homeowners in extremely predatory loans, such as the Choose-a-Pay loans to modify the terms. The complaint alleges that Wells Fargo is responsible for the negligence of the banks it acquired and for its personal negligence in its servicing of these loans right after the acquisition. Since of the alleged negligence, the borrowers have been injured.

UFAN is devoted to fighting for justice for American home owners. These borrowers deserve relief and we are determined to assist, says Kristin Crone, Lawyer and CEO of UFAN.

Complementary consultations obtainable.

ABOUT THE UNITED FORECLOSURE Attorney NETWORK

UFAN Legal Group, Pc, DBA: United Foreclosure Lawyer Network (UFAN) is a Roseville, California-based law firm offering mortgage litigation and other debt connected legal services. The committed attorneys and staff at UFAN perform tirelessly to seek justice and fight for the rights of its consumers. For much more details get in touch with toll totally free 1-866-400-4242.

This release may constitute lawyer advertisement. The details in this release and on the UFAN web site (ufanlaw.com) is for common details purposes only. Nothing in this release or on the UFAN internet site should be taken as legal tips. Prior successes are no guarantee of future efficiency. Litigation is inherently uncertain and benefits in litigation are in no way assured.

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