KEY WEST LOU LITTLE GUY WINS n


L E G A L I T I E S with Louis Petrone


Philadelphia homeowner and his mortgage bank. With a rare feature: Te homeowner is foreclosing on his bank. Te homeowner purchased his


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home for $180,000. With a mort- gage, of course. Te American way. Te bank holding the mortgage was, and is, Wells Fargo. At some point, Wells Fargo sent the homeowner a letter advising that he was required to purchase and pay for a $1 million policy on the house.


Te homeowner did not under- stand why he was being required to over insure the house by 500 per- cent and pay the substantially higher premium. Te homeowner wrote three letters to Wells Fargo requesting an explanation. Wells Fargo failed to respond. Somehow, somewhere, the


homeowner became aware of the Real Estate Settlement Procedures Act. Te letters were sent pursuant to the Act. It requires a mortgage institution to respond in 20 days and correct any problem within 60 days.


Te homeowner sued Wells


Fargo based on its failure to comply with the law described. Wells Fargo failed to appear


in court. Nor did any attorney on behalf of Wells Fargo contact the homeowner. Te court awarded the home-


owner a default judgment against Wells Fargo for $1,173. Te homeowner, armed with


ccasionally, a David can still defeat a Goliath. Tis is the tale of a


LOU PETRONE TALK SHOW HOST


the court judgment, foreclosed on one of Wells Fargo’s local Philadelphia offices. He had a sher- iff’s levy made against the furniture in the office. Te sale was sched- uled for March 4. Wells Fargo paid the judgment


in full in January. Tis did not satisfy the homeowner. He wanted his letters answered. He advised the sheriff to proceed with the foreclosure sale on March 4. Apparently this last move


brought the situation to the atten- tion of top management at Wells Fargo. A very high Wells Fargo of- ficer traveled to Philadelphia to meet with the homeowner. Tey resolved the insurance coverage problem at $255,000. Te homeowner called off


the foreclosure. Te little guy won. Primarily


for two reasons. First, he was right. Second, he used the law against Wells Fargo as Wells Fargo and other banks are using it against middle-class homeowners who cannot meet their mortgage payments in these dire economic times.


What is good for the goose is good for the gander!


Go little guy! e 14 KONK Life


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