Disabled Veteran And His Wife Claim Wells Fargo Violated A Contractual Guaranty Clause In Their VA Mortgage
Disabled veteran Donald Manning and his wife have filed a lawsuit against Wells Fargo Bank NA. They claim Wells Fargo breached their mortgage contract by failing to provide pertinent details of the plaintiffs’ account. The Mannings also allege Wells Fargo refused to return payments. In addition, they allege Wells Fargo also tried to unfairly collect on payments on their West Virginia home.
The disabled veteran and his wife allege they entered into a loan with Wells Fargo on or about June 23, 2005. The loan had an initial principal balance of $94,400 for the rural West Virginia property. The note and deed of trust for the loan contain a contractual guaranty by the U.S. Department of Veterans Affair. This guaranty requires Well Fargo to comply with federal regulations and laws governing VA-guaranteed loans.
In October 2011, the Mannings entered into a settlement with Wells Fargo for mishandling the servicing of the Manning’s mortgage loan. As part of the 2011 settlement, Wells Fargo rewrote the mortgage with a principal balance of $70,331.76 with a 4% interest rate. Wells Fargo also gave the disabled veteran and his wife a new 30-year term, with a maturity date of Oct. 1, 2041.
Wells Fargo Creates More Headache For The Disabled Veteran
Kimberly Manning lost her job and her income last year. The Mannings attempted to make regular mortgage payments but were unable because of Donald Manning’s modest disability income. They also attempted to contact Wells Fargo multiple times to explore loss mitigation options but were unsuccessful.
In addition, the Mannings continued to make irregular payments despite their setbacks. It also appears Wells Fargo refused to apply the funds to their account and returned the payments. Wells Fargo also allegedly refused to provide them monthly statements of their account. This deprived the Mannings of crucial account information. This included unpaid interest, penalties, and escrow advances.
The disabled veteran and his wife also claim they sent another letter to Wells Fargo requesting information about their account. Wells Fargo again refused to respond to the letter.
The Mannings claim Wells Fargo referred their home for foreclosure in May 2015 and filed Chapter 7 bankruptcy on Oct. 2, 2015, to stop the foreclosure.
The Mannings tried to contact Wells Fargo again for assistance regarding loan payments. They claim Wells Fargo again ignored their request and, on Jan. 8, Wells Fargo allegedly set their home for foreclosure sale.
The plaintiffs are suing for actual and compensatory damages, a temporary injunction of the foreclosure of their home, civil penalties for violation of the VA rules and regulations, appropriate equitable relief, attorney fees, and any other relief deemed just by the court. They are demanding a jury trial and are represented by Sara Bird of Mountain State Justice in Clarksburg.