REO Bank Foreclosures in Memphis Blamed on Wells Fargo
REO bank foreclosures in Memphis and other parts of Shelby County are being blamed on Wells Fargo, the California-based bank which acquired Wachovia in December 2008. Memphis and Shelby filed a lawsuit alleging Wachovia engaged in predatory and discriminatory lending practices.
REO bank foreclosures in Memphis and other parts of Shelby County in Tennessee are being blamed on giant financial services provider Wells Fargo, which is based in San Francisco.
The city and the county have filed a civil litigation case against Wells Fargo alleging that Charlotte-based bank Wachovia, which Wells Fargo acquired in December last year, engaged in predatory lending practices that resulted in a disproportional number of foreclosures in minority communities in Memphis.
The lawsuit is using the Fair Housing Act, which prohibits unlawful, unfair, irresponsible, discriminatory and deceptive mortgage lending practices. It further alleges that Wachovia targeted minority communities, resulting in abandoned houses, extreme blight, low property values and low tax revenues in communities with high concentration of home foreclosures.
By Cassiano Travareli