Facts

In 2005, Ron Ward and his family obtained an $837,900 mortgage at six percent interest from Wells Fargo. When the housing market crashed three years later, the Wards stopped making payments at the bank's suggestion in order to qualify for a loan modification. The Wards made three payments to meet the terms of their loan modification agreement with Wells Fargo, when the bank sold their home at a foreclosure auction.

The Wards filed suit against Wells Fargo, alleging wrongful foreclosure and breach of contract.

PLAINTIFF'S CONTENTIONS:
The Wards contended that they submitted detailed information to the bank in order to receive a loan modification, but the bank repeatedly lost the documents and confused his file with another borrower's.

DEFENDANTS' CONTENTIONS:
Wells Fargo contended the Wards did not qualify for a loan modification because their monthly income was less than their expenses.

Result

The court issued a preliminary injunction preventing Wells Fargo from evicting the Wards and selling the home.