Mistaken Foreclosures: No End In Sight?

Selling a home can be a difficult, stressful process, even now after the nation's largest banks have paid billions to settle claims of robosigning, and foreclosing on homes without properly vetting the paperwork. Now imagine going through

Selling a home can be a difficult, stressful process, even now after the nation's largest banks have paid billions to settle claims of robosigning, and foreclosing on homes without properly vetting the paperwork.

Now imagine going through the process, receiving multiple offers...the hard part is over, right?

Not for Lily Diaz, a California woman who after receiving two offers on her house, discovered that Wells Fargo had actually foreclosed on the home months earlier.

Via:

Diaz said she was shocked because she has the paperwork that shows she completed a loan modification with Wells Fargo in January.

She said she made every monthly payment on time since it was approved.

“Wells Fargo apparently didn’t let title know the modification was accepted and they let the foreclosure proceedings continue,” said Duarte. “Wells Fargo knows they made the mistake. They don’t know how to fix it.”

As it stands now, the home can’t be sold.

Wells Fargo contacted Diaz to resolve the problem, but in the meantime, Diaz lost two offers on her home.

Despite efforts by federal regulators, it doesn't seem that the problem of mistaken foreclosures has been resolved, as unfortunately, cases such as Lily Diaz' are still not rare.

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About Diane Sweet

Diane Sweet's picture
Senior Editor, Lives in a gerrymandered district in Michigan.

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