Foreclosed Home is the Party Spot of Wells Fargo Executive
The real estate crisis in the US has worsened. As unemployment peaks, people are faltering on mortgage payments. Subsequently foreclosures have become common. The foreclosed properties are now the happy hunting ground of the vandals and drug peddlers. Some of them are even carrying on their illegal practices in these houses that have been lying vacant for a long time. With walls crumbling and rooms ripped apart, these homes are indeed in a very sorry state. The gardens are overgrown with weeds as well.
Now a recent incident has come to light that has drawn the attention of many. A senior official of the lending agency, Wells Fargo, has been throwing lavish parties in one of the foreclosed properties. The senior vice president of the company is responsible for the bank’s foreclosed homes.
This person had thrown a lavish bash at a Malibu beach house in California. Priced at $12 million, the owners of the house had to give up the property to satisfy the ballooning debt amount. Wells Fargo had declined to showcase the house to buyers. This had perplexed the real estate developers.
It may be pointed out that the previous owners had been victims of a scheme. Neighbours of the sprawling modern house bordering the Pacific, said the Wells Fargo employee Cheronda Guyton, was quite extravagant in his entertainment. Some of the guests arrived at the party by yacht. Guyton was not available for comment and the bank said a proper investigation would be conducted into the allegation.
Wells Fargo has been the subject of a controversy. There are allegations that the lender has not been able to modify loans of borrowers. It may be noted here that the Federal government has come up with Making Homes Affordable program. As a part of this program, homeowners are being giving assistance in down payment and their loans are being modified as well. However, the program has started off on a slow pitch and lenders like Wells Fargo has not been able to alter loans of consumers on the fast track.
Normally, borrowers are placed on a three-month trial during which if they are able to successfully pay the revised mortgage amount then that is fixed for the lender. The Treasury has observed that Wells Fargo has started handling the cases of only 11 per cent of the eligible homeowners who are two months behind their scheduled mortgage payment. That is surely much below the national figures.
- Amidst Foreclosures, People hold Negotiations for Lower Mortgage Payment
- The Middle-Class is now Being Affected by Foreclosures
- Lenders Seem to be Making more Money from Foreclosures than from Modifications
- Foreclosures and Unemployment Tries Out the Patience of Chicago
- Increase in Foreclosures has Led many Legal Personnel to Opt for Assistance Dealings
- Foreclosures are One of the Prime Reasons for Increasing Homelessness
