Wells Fargo Home Mortgage, Inc. v. Neal
Wells Fargo Home Mortg., Inc. v. Neal, 398 Md. 705 (2007)
- Court
- Court of Appeals of Maryland
- Decided
- 2007-05-07
- Docket
- No. 58, Sept. Term, 2006
What happened
Alan Neal had an FHA-insured loan. He argued Wells Fargo foreclosed without following HUD servicing regulations referenced in his deed of trust.
What the court decided
Maryland's highest court held a borrower cannot sue for damages on the HUD regulations as a contract claim, but may raise the lender's failure to follow them to seek an injunction blocking foreclosure.
In the court's words
“may raise a violation of the regulations in pursuit of an injunction blocking foreclosure”
Why it may matter to you
If you have an FHA loan, HUD's servicing rules can be a shield. Ask whether the servicer did what HUD requires before foreclosing.
Why it might not apply
Maryland law; courts in other states differ on how HUD rules can be used. Texas courts have often rejected HUD-regulation claims.
Most useful when
- You have an FHA loan and the servicer skipped HUD's required steps (like a face-to-face meeting)
How to cite it
The full citation for the first time you mention it, a short form for later, and a sample sentence you can adapt.
Wells Fargo Home Mortg., Inc. v. Neal, 398 Md. 705 (2007)Short formNeal, 398 Md. 705Draft — check it with free legal aid before you file or say it in court.
In Wells Fargo Home Mortg., Inc. v. Neal, 398 Md. 705 (2007), the court held that an FHA borrower may raise a lender's failure to follow HUD servicing regulations to seek an injunction against foreclosure, though not as a damages claim. Here, [say in one sentence what happened in your case]
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