Wells Fargo discovers problems with foreclosure affidavits

Wells Fargo has continued with home repossession while several other large mortgage servicers such as Bank of American and JPMorgan Chase have delayed them in at least 23 states where the courts oversee the foreclosure process while they investigate problems. 

Last month, borrowers completing foreclosures were on average 16 months delinquent on their payments, said Mike Heid, co-president of Wells Fargo Home Mortgage.

"When all options have been exhausted, we believe foreclosures should not be delayed,” he said. 

The process of filing the affidavits will begin immediately with a goal of completing the process by mid-November. 

Wells Fargo reported completing 556,868 mortgage loan modifications between January 2009 and Sept. 30, amounting to 1.9 million mortgages and $3.5 billion in forgiven principal forgiveness.

“We understand the concern over foreclosure procedures on the part of homeowners in these difficult economic times and want to do everything we can to assure that the procedures we have in place provide Wells Fargo borrowers and others with confidence that foreclosure proceedings we initiate are done appropriately,” Heid said.