Ruling Could Cost Thousands of New Jerseyans Their Homes
Allowing Wells Fargo to collect full back interest on foreclosed mortgages will drive up debt for overburdened homeowners
Wells Fargo Bank can charge New Jersey homeowners full back interest on mortgages in foreclosure cases that were delayed by a judicial review of abuses in the process, a Superior Court judge has ruled. The decision by chancery Judge Margaret Mary McVeigh boosts the debt owed on thousands of properties at a time when major banks ostensibly are offering loan modifications to homeowners in arrears. Now, the debt starting point for modifications will be higher for thousands of borrowers, which may increase the likelihood of foreclosure. They will be hit with back interest accrued at rates as high as 13 percent, set before the cost of borrowing plunged along with the economy. Wells Fargo, represented by Mark Melodia and Diane Bettino of Reed …
