Dementia Victim’s Family Files Federal Lawsuit Against Wells Fargo Alleging Dual Tracking Scam In His Foreclosure
A Mississippi daughter and father have filed a federal lawsuit against Wells Fargo Home Mortgage. They allege Wells Fargo unlawfully foreclosed on the father’s home using illegal dual tracking methods.
Patty Parrish filed the lawsuit on behalf of her father, Norman Frossard. Frossard suffers from dementia.
The lawsuit alleges Wells Fargo and foreclosure law firm, Dean Morris engaged in unlawful dual tracking with Parrish and Frossard. Wells Fargo and Dean Morris also allegedly continued to negotiate with them after the foreclosure auction had already occurred.
Dual Tracking Lawsuit Alleges Wells Fargo Took Advantage Of Dementia Victim
However, Wells Fargo spokesman Tom Goyda said will defend itself against them:
We worked with Mr. Frossard and his family for four years to identify an option that might allow us to avoid foreclosure. Unfortunately, were not successful in those efforts. Our records indicate that we handled the account and our efforts to avoid foreclosure appropriately.
The lawsuit said Wells Fargo and Dean Morris violated the Dodds-Frank Act of 2010. Parrish and Frossard allege Wells Fargo did not eexplore all alternatives to foreclosure. They also allege the bank did not fulfill their obligation for loss mitigation. Wells Fargo also allegedly failed to engage in a fair review process for a loan modification.
Parrish and Frossard’s attorney, Macy Hanson also claims the nonjudicial foreclosure auction on Nov. 1, 2017, didn’t comply with state law:
The motive for the wrongful action is that Wells Fargo knew that it was over-secured on its loan with Norman Frossard. Wells Fargo set up this foreclosure so it would have the valuable Frossard home revert to Wells Fargo post-foreclosure instead of being sold to a third party.
The 5,500-square-foot home appraised for $450,000 prior to the foreclosure.
The lawsuit also seeks a temporary restraining order against Wells Fargo to cancel and terminate the foreclosure and damages.
The lawsuit also said credit of the equity cushion to the loan balance of Frossard’s home would have resulted in a post-foreclosure refund of the equity cushion to Frossard.