Huh. I wonder if Wells Fargo told Karen Michaels to stop making her payments for three months so she would "qualify" for a mortgage modification. Her credit was probably perfect, she probably made all her mortgage payments on time, then life got in the way as it sometimes does, and she was put in the precarious position of having to ask the Godfather for a little help. At least that is usually the way it happens.

Her mod was most likely denied by Wells Fargo’s old tried and true reason for denying all modifications: oops, yes, we are foreclosing against you since you've missed three payments, even though we are the ones who told you to stop making your payments; it’s not our fault we've suddenly realized we don't own your note, thus we can’t modify your loan. Sorry we've ruined your credit. Say goodbye to your home.

Note: If Wells can’t modify without permission from their investors, they certainly can't legally foreclose without permission from their investors. So if they try to take your home, ask them to prove they have permission from their investors to take your home from you. Tell them you want to see the MASTER POOLING AND SERVICING AGREEMENT FOR THE TRUST THAT HOLDS YOUR MORTGAGE LOAN.  Ask for it in the "Discovery" stage of your lawsuit.

 

Foreclosed home granted reprieve

Saturday, January 22, 2011

By JACK FLYNN

jflynn@repub.com

SPRINGFIELD - Karen Michaels' home in Sunderland is safe for two more months.

That much was clear after a 90-minute hearing in U.S. District Court Friday, when U.S. District Judge Michael A. Ponsor declined to dismiss Michaels' lawsuit against Wells Fargo mortgage company to block foreclosure on her home.

But Ponsor also urged Michaels' lawyer, Francis K. Morse, of Springfield, to cooperate with requests by Wells Fargo for more detailed financial information from Michaels, and urged both sides to continue working for a solution to the foreclosure case.

He set a March 28 date for the next hearing, and told lawyers he had a preferred outcome in the case.

"Let's try one more chance to get there," the judge said, referring to a solution that will satisfy Wells Fargo and keep Michaels in her home.

Michaels, 54, a massage therapist and ballet instructor, struggled to hang on to her Cape-style home at 240 S. Silver Lane for more than a year by appealing to the Wells Fargo mortgage company for a loan modification in 2009. In November, Ponsor issued a preliminary injunction blocking the foreclosure planned for the day after Thanksgiving.

On Friday, the judge heard reports from Morse and Wells Fargo's lawyer, Patrick J. Clendenen, who said his client was seeking basic financial documents to determine whether Michaels qualifies for a federal program designed to aid financially distressed mortgage holders.

At the same time, Michaels' lawyer has been seeking documents relating to whether Wells Fargo miscalculated her eligibility for loan modification assistance.

The judge cautioned Morse that even if a mistake was found in previous calculations, it would not guarantee that his client could keep her home. Turning over basic financial documents involving Michaels' income to Wells Fargo would be helpful to both sides in clarifying the issue, Ponsor said.

Morse agreed to turn over the financial records by the next hearing.

Neither Morse, Clendenen nor Michaels would comment after the hearing.

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• Wells Fargo 4Q profit up, aided by lower reserves (usatoday.com)
• Wells Fargo Home Mortgage (themortgagepot.com)
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