Opinion ID: 2751916
Heading Depth: 3
Heading Rank: 1

Heading: Foley's Home Loan

Text: Foley applied for a home mortgage loan from World Savings, FSB,2 on March 7, 2005. The bank offered Foley a Pick-a-Payment loan--a monthly, adjustable-rate mortgage that allowed the borrower to choose one of various payment arrangements, based on a minimum payment amount determined by the borrower. Foley accepted the $455,000 loan, and his monthly mortgage payment was approximately $1,600. But Foley, like so many other borrowers, was affected by the housing crash of 2008. The value of his home dropped 2 Wells Fargo Bank, N.A. is the successor-by-merger to Wells Fargo Bank Southwest, N.A., formerly known as Wachovia Mortgage, FSB, formerly known as World Savings Bank, FSB. We refer to the entities interchangeably, as do the parties, as Wells Fargo or the bank. -3- significantly, preventing him from refinancing with a more favorable interest rate. He lost his job around October 2008, but used his savings to continue making mortgage payments for two years. Come October 2010, Foley succumbed to his financial hardship and stopped making timely payments in-full, but did make some partial payments through April 2011. He sought a loan modification from the bank, and in April 2011, Wells Fargo informed him he might qualify for the Home Affordable Modification Program (HAMP), a federal program that allows qualified homeowners to reduce their monthly mortgage payments. Foley asked to participate, and the bank's representatives said they would send him an application.