KANSAS CITY, Mo. -- A metro mom is losing her home to foreclosure, but her attorney admits $3 could have made the difference and actually saved her home. It's a call to action that shines a light on a bigger problem with Missouri law. Angellica Taylor proudly shows off her Kansas City home. Her favorite room is her bedroom and adjacent bath. "This would be my pride and joy. This room took a very long time to decide the colors and the carpet," Taylor said. From floor to ceiling fresh colors and a fresh design welcome you into every room of Taylor's home. She got rid of the pink shag carpet in the basement, and the pink popcorn walls. In the kitchen, Taylor says she added Coca-Cola decorations to personalize it. Before Taylor bought the home, it sat on the market for 18 months. It was a steal for a single mom with her own consulting business. Taylor brims with pride when she walks you through the renovations. With the past gone, you'd think the future is bright. But, it's not. Overcome with emotion and staring at her kitchen decorations, Taylor adds, "I've done so much work to the house. To me it's not a house. It's my home. I've personalized it." In a matter of days, those personal touches were gone and in the hands of someone else. "I don't understand how you go from you're on a payment plan to your house is sold," Taylor said. It's not the deal Taylor expected when she moved in or she expected when she fell on hard times last fall. "I had two clients last year that ended up going bankrupt so I worked 5 out of 6 months of my contract and only got paid for 2 of the six months of the contract," Taylor said. As the economy got worse, Taylor had a harder time getting clients. She has a handful right now, and can make a modified mortgage payment but that will no longer be possible.
Check Doesn't Arrive On Time
Taylor thought she worked out a deal to repay her loan with Wells Fargo. Wells Fargo says they sent a foreclosure letter in April, but Taylor was optimistic in early May when she got a letter detailing an adjusted payment plan for several months to deal with her financial hardship. Taylor made the payment. Then got word that her home had been sold just weeks later. None of this added up for Taylor. "I had seriously, absolutely no idea. I was completely flabbergasted when I called and they said 'your house was sold.'" "This kind of thing has to stop," Attorney Steven Majors said. Majors is reviewing the case for Taylor. The company at the center of this story is a name Majors says he knows well. "In my practice I can tell you 75% of the time the name Wells Faro is right there at the top," Major said. Majors is reviewing the timeline of what happened in Taylor's case. On May 4th, Wells Fargo detailed a repayment arrangement in writing. On May 21st, Taylor priority mailed her first modified payment having no idea days earlier her home was posted for foreclosure. On May 13th, Wells Fargo posted a foreclosure notice in the Weston Chronicle. Wells Fargo says it's foreclosure and loan modification/repayment processes work simultaneously. Wells Fargo says it's expensive to foreclose and it would rather modify a loan or work out a payment plan. Still, The company warns homeowners that, "There is no grace period in terms of remitting payment, however, in this case, Wells Fargo did wait an additional 6 days past the agreed to deadline before terminating the agreement. When funds come in after that date, they must be returned," Communications Manager Kevin Waetke said. Taylor sent her check priority mail, but didn't pay extra to have someone sign for it. "Maybe this was stupid on my part, but I've priority mailed things business wise several times and never had a problem of it getting there," Taylor said. The check didn't get there on time. "They're saying I sent it to the wrong department. It got lost," Taylor said. Wells Fargo sent the check back and called the deal off on at the end of May, but added "there may be other alternatives" and asked Taylor to call. By the time Taylor got the letter and picked up the phone, the home had been sold. "The sheriff never came to my house and said your house is being sold. I mean absolutely nothing beside the one letter," Taylor said. Wells Fargo says the foreclosure letter came in April, and that its foreclosure process continues to move ahead while negotiating a repayment plan. "At no point did they say to me if your payment is not there we're goign to sell your house," Taylor said.
"The Legislature Needs To Take Action"
"Wells Fargo never took the courtesy step of calling her and saying, 'I thought we had this worked out, why didn't you send the payment?'," Majors said. Missouri Law only requires notices to foreclose, however, cases sometimes go to court. In this case, Wells Fargo didn't take the case to court. Only, the new owner filed in court to gain possession of the house. In Kansas, the case goes through the courts. "These guys are fantastic at following the letter of the law, but the letter of the law is not always right," Majors said. "It doesn't make sense to throw one person out so you can have a vacant house." Majors points to the other vacant homes on Taylor's street, and the fact that she bought the house after it sat on the market for 18 months. "A common courtesy would prevent a lot of these problems," Majors says. Majors says he'd like to see a higher burden of proof before someone can foreclose. "The legislature needs to take action to put another step in the plan where Wells Fargo or any other mortgage company has to prove we did everything we could and you repeatedly defaulted -- not like this," Majors said. Majors believes that would end the stories where the homeowner has no idea their home is being foreclosed. Majors knows his client probably won't win her fight, but believes it has a higher purpose. He's filing a lawsuit in court for wrongful foreclosure. "We have to fight the war knowing we'll lose the battle, but hopefully we'll win the war," Majors said. Back at Taylor's home, her days are numbered. The clock is ticking. Taylor thought she had until November 1st, but now the deadline is Thursday. Taylor is trying to work with the servicer/new owner on this new move out date. "The whole thought of having to pack everything up and move is just draining. I don't want to leave everything I've done," Taylor said. But, the toughest task still lies ahead. Taylor has a teenager daughter. "I don't know how to explain to her that I really did make the payment but they took the house anyway so now we have to go," Taylor said. Taylor says she's tried to work out a deal with the new owner, Federal National Mortgage Association, but hasn't had any success. FNMA is really Fannie Mae. A company spokesman explained that in general its modification program guidelines are strict because the company is taking risk by offering a reduced payment. In many cases, Fannie Mae takes back the loan if it's the investor on the original loan and there is not a bidder at the foreclosure auction.
$3 May Save Your Home
The lesson in all of this is to call and check on your payment if you're modifying your loan. Make sure it arrives on time, or elect to have it directly debited from your account. Mail that check early. Not a few days before it's due to make sure it is recorded on time. If you are sending the payment, pay extra to have it tracked and signed for so you know it arrives. That would cost you $2.80 for a premium postal service for tracking and required signature. "Three dollars could have saved her house," Majors said. Wells Fargo told us it won't take responsibility for mail delays.
Wells Fargo Statement
In a statement the company told us: "Wells Fargo can confirm that Ms. Taylor was made aware of the foreclosure action in early April. We continued to work with her in an effort to provide some assistance, and in early May Wells Fargo offered her an option that would provide payment relief. This plan was extended further at her request, but unfortunately the terms were not followed as both parties agreed. The workout agreement, which both parties sign, is very specific. There is no ‘grace period’ in terms of remitting payment, however, in this case, Wells Fargo did wait an additional 6 days past the agreed to deadline before terminating the agreement. When funds come in after that date, they must be returned. Generally speaking, there are three key tips to keep in mind: 1. Once we have a signed agreement from a homeowner and they have made their first payment under that agreement, foreclosure actions cease. If for some reason we do not obtain the first payment according to the terms established, that agreement is nullified and the foreclosure action continues. 2. Whenever we are able to provide either a modification or some other type of payment relief, the terms and conditions of the agreement, along with specific instructions on how to submit payments, are included in the documents the homeowner reviews and signs. 3. It’s important that homeowners understand the specifics of the agreement they’re asked to sign, and ask their loan servicer for clarification if they have questions."
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