Judge orders bank to pay $3.2 million over "shocking" foreclosure.

Bank told to pay $3.2M for 'shocking' foreclosure.

ALBUQUERQUE, N.M. (AP) — A New Mexico judge has issued a $3.2 million judgment against Wells Fargo for foreclosing on a man's home after his death, even though he had purchased an insurance policy through the bank that would have paid the remaining balance on his mortgage.

Dollens had purchased an accidental death mortgage insurance policy for his Rio Rancho home that was marketed by Wells Fargo and issued by Minnesota Life.

However, Brickhouse said Wells Fargo disregarded the terms of the insurance policy before moving to foreclose.

That, the judge said, was a breach of the covenant of good faith and fair dealing. She said the bank's "unwillingness and failure" to hold off on the foreclosure even when requested to do so by the insurance company was "shocking."

Mr. Dollens bought an insurance policy to pay for the balance of his mortgage in the event of his death.

Who sold him the policy? The same bank, Wells Fargo, who held his mortgage.

Seems like there might be a small conflict of interest but ok.

Mr. Dollens then passes away and everything is taken care of, right? WRONG.

His death was reported immediately to Minnesota Life and to Wells Fargo to make a claim under the policy. But instead of seeking funds from the insurance policy, Wells Fargo sent notices about the loan being in default and referred the loan for foreclosure in December 2010.

The foreclosure proceeded despite requests from representatives of the estate to hold off pending the insurance payout.

So the same banksters who sold him the insurance, tried to take his home knowing that he was covered...

Wow. Just WOW.

Wells fargo.werent they involved in huge money laundering for the cartels too?
Forget the damages....what about the criminal prosecution of these people? Naw....never happen...

The thing I like about bankers is the cool sound they make when they hit the sidewalk following a jump from the fourteenth floor. I really hope this story is fictitious so my blood pressure goes down!!

Sounds like they were double-dipping.

But it was all just an internal clerical error right?

Corporate anonymity at work.

One thing I have learned is that in foreclosure proceedings banks aren't concerned about following even basic procedures.

I would guess about 99% of people simply default in foreclosure. Even if their mistake is caught be they the small minority who chooses to fight and has the knowledge/skills to research laws, nothing negative usually happens to the bank.

It will take a number of these large cases to change the way banks conduct foreclosures.

Wells fargo.werent they involved in huge money laundering for the cartels too? Forget the damages....what about the criminal prosecution of these people? Naw....never happen... - See more at: www.abovetopsecret.com...

reply to post by stirling


What's 3.2 million when it comes to a bank whose earnings are in the billions of dollars a year! Criminal prosecution should be applied to this case. This is no different than criminals who are scamming people out of their life savings.

WeRpeons

Wells fargo.werent they involved in huge money laundering for the cartels too? Forget the damages....what about the criminal prosecution of these people? Naw....never happen... - See more at: www.abovetopsecret.com...

reply to post by stirling

 

What's 3.2 million when it comes to a bank whose earnings are in the billions of dollars a year! Criminal prosecution should be applied to this case. This is no different than criminals who are scamming people out of their life savings.

Yep...They're right up there with car thieves and purse snatchers and yet they're a legal act on life's stage

reply to post by Daughter2

It will take a number of these large cases to change the way banks conduct foreclosures.

They're banking on it!!