California Real Estate Fraud Report

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16
Nov

Disabled San Francisco Man Accuses Wells Fargo of Dual-Tracking, Wrongful Foreclosure

If the allegations in this story bear out, this has to be the most egregious case of a wrongful foreclosure I have ever been told. I hope somebody from the California Attorney General’s Office, HUD, the U.S. Treasury Dept. and other federal agencies reads this article and investigates it fully.

Larry Faulks, a 59-year old disabled man whose home is located in the Diamond Heights community in San Francisco, tells me and other news organizations that Wells Fargo Bank wiped out almost $1 million in equity he owned when they foreclosed on his property while he was in the midst of what he thought was a HAMP loan modification.

Faulks’ parents purchased the home as a new construction in the early 1960s at a time when many developers actively discriminated against minorities by refusing to let them purchase homes in new neighborhoods. There were a number of developers in Diamond Heights but according to Larry, only Eichler Homes did not share this philosophy and the Faulks family became the first African-American family to purchase a home and move to the neighborhood.

Note: According to Wikipedia, founder Joseph Eichler so believed in diversity that he “resigned from the National Association of Home Builders when they refused to support a non-discrimination policy.” This was in 1958.

Several years ago, Faulks contracted a rare antibiotic-resistant staph infection and became disabled as a result. The home, which he and his brother had inherited, had a loan on it for approximately $550,000 which Faulks had taken out to buy out his sister for her share. When he became disabled, he contacted Wells Fargo for a hardship application. He says he submitted several applications on his own and documents were routinely lost. He then submitted documents through a Wells Fargo Home Preservation Specialist and his HUD-approved housing counselors. Those documents were also lost.  He said the bank promised him in writing that it would not foreclose on his home while they were evaluating his application(s) and that he has in his possession letters from Wells Fargo stating the same. Nevertheless, he found out his home had been foreclosed only when a real estate agent showed up to inform him of such on the day the Trustee Sale took place. The home was sold for cash for the amount owed on the note to DMG Asset Management, which gained almost $1 million in equity that was transferred to them at the expense of Larry Faulks.

Wells Fargo claimed it had tried to contact Faulks on a number of occasions but has provided no proof to him in the form of phone logs. Faulks says his only telephone is a cell phone and that he can prove using his own phone records that Wells Fargo only tried to call him one time, that the call was approximately one minute long and that the bank’s employees did not leave a message. He also says they cannot prove otherwise because they simply did not make any genuine effort to contact him.

Note: Considering the millions of dollars that Wells Fargo annually showers on the African-American, other minority and gay communities in the form of sponsoring events and advertising in order to show it is a good corporate citizen (meaning, it wants their dollars), it should step up immediately and do the following: investigate its foreclosure of Larry Faulks‘ home and either offer defnitive proof that all of its actions, from beginning to end, were in violation of no laws and showed no bad faith (wiping out his million-dollar equity) or it should mea culpa and rescind the sale.

Larry Faulks is now fighting eviction from his home of 50 years by DMG Asset Management and certain homelessness since he is minus $1 million in assets. Read an article in the Bay Area Reporter to learn more.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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