Tampa, FL, March 04, 2011 --(PR.com
)-- Wells Fargo’s recent pledge to make $2.4 billion in loan modifications for California borrowers with adjustable rate mortgages is a step in the right direction, according Jo Ann Koontz, an attorney and CPA in the Yesner & Boss Sarasota office.
“This step is promising for Florida borrowers, too, as Wells Fargo representatives have expressed hope that they can reach similar agreements in all 50 states,” Koontz said. Furthermore, as the fourth-largest bank in the nation, the Wells Fargo initiative may encourage other banks to follow suit.
In addition to the large loan modification payment, Wells Fargo reached an agreement with California's Attorney General Edmund "Jerry" Brown to pay the state of California $33 million to put toward the prevention of foreclosure as well as reducing the effects foreclosures have already had on borrowers. Attorney General Brown stated that the money will be distributed to about 12,000 borrowers who lost their homes due to foreclosure.
Wells Fargo admits that adjustable rate mortgages, which are loans that begin with low, seemingly manageable payments but eventually mushroom to exorbitant rates that few borrowers can afford, are unfair and harmful to borrowers. However, it is quick to point out that it did not originate any of the loans it is seeking to remedy. Instead, the loans were issued by Wachovia and World Savings Bank, both of which have since been subsumed by Wells Fargo.
Prior to these promises, Wells Fargo had already modified more than 50,000 adjustable rate mortgages, reducing borrowers' principal balances by $2.9 billion. In addition, Wells Fargo remains open to increasing the amount they spend on loan modifications, depending on how the housing market responds and progresses in the future.
“This is a positive development toward easing the foreclosure crisis,” Koontz believes. An attorney and Certified Public Accountant, Koontz helps clients with foreclosure defense and short sales. Yesner & Boss, with offices in Sarasota, St. Petersburg, Tampa and Boynton Beach, offers the full range of legal practice, including personal injury, bankruptcies, litigation, business law, family law, wills, trusts and probate, and residential and commercial real estate closings. The Sarasota office is located at 1819 Main St., Suite 215, Sarasota, FL 34236. Telephone: (941) 362-0050. Website: www.yesnerboss.com.
For more information Yesner & Boss, or to schedule an interview with Jo Ann Koontz, please contact Sheila Longo at (941) 355-3006 or email@example.com