Etienne Syldor, an Orlando man, has often worked multiple jobs to keep his mortgage current, even overpaying and making payments early in a mortgage modification trial with Wells Fargo.
The result: the bank stopped accepting his mortgage payments and started foreclosure proceedings.
“When he came in and showed me all the documents, it was just unbelievable,” Lamya Henry, Syldor’s attorney, told the Orlando TV station, WFTV. “Who get’s foreclosed on when you make all your payments on time?”
Apparently, many homeowners do, even those trying to get through mortgage reduction trials in good faith.
What happened to Syldor, who drives a bus at DisneyWorld and is trying to keep the home he shares with his wife and three children, could qualify as “dual-tracking” — the dreaded practice of moving forward with foreclosure as the homeowner is negotiating a reduction in monthly payments, or mortgage modification.
And that’s a violation of the National Mortgage Settlement reached with Wells Fargo, JPMorgan Chase, Bank of America, Citi and Ally early last year.
The monitor over the settlement, Joseph Smith, next month is expected to release his first detailed grading of how well the five banks have met more than 300 new servicing standards required under the deal with 49 states, including Florida.
Smith has already heard plenty of complaints from consumer advocates, housing counselors and state attorneys general from around the country about the lenders, more than one year after they settled charges of “robo-signing” and other wrongdoing in foreclosure cases nationwide.
The case of Orlando’s Etienne Syldor is even more baffling when Wells Fargo’s response is added to the mix.
Apparently, Syldor did not meet certain guidelines (fine print) in the mortgage modifications that were violated by overpaying or making multiple payments — that amounted to more than he owed.
Here is the response from Wells Fargo to the Orlando TV station:
For some loans, completing trial payments is a significant step toward a permanent modification; however, in this instance, the loan was part of a mortgage-backed security and in a protected pool, with specific payment guidelines. We are working with Mr. Syldor to explain the guidelines and explore options that may help.
“It don’t make any, any sense,” Syldor said.
See WFTV’s report below: