USDA v. Farkas

Petitioner Reply Brief to Wage Garnishment Hearing

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This is a brief opposing wage garnishment to repay a personal loan guarantee owed buy a home buyer who lost his home to foreclosure under the USDA Rural Home Loan Program. The now-unfunded program targets low-income first-time buyers and guarantees the loan to the lender, in this case Wells Fargo, who in turn has the borrower sign a miniscule personal guarantee to repay any loss claim paid by the USDA to the Lender.

In the present case, Wells Fargo's loan processing and servicing are challenged and it is alleged Wells Fargo intentionally altered the actual loan guarantee after the borrower signed it as to a different Lender.

The processing and guaranteeing of the USDA Rural Loan is governed by RD Instruction 1980 and has few provisions protecting the consumer.

I represent the Borrower and we are trying to avoid collection on the debt (bankruptcy is not an option) on the basis Wells Fargo was not a party to the loan guarantee and intentionally and negligently altered the document and that enforcement of the loan guarantee as to Wells Fargo constitutes a violation of the Statute of Frauds.

Wish us luck. I fear there are many other low income folks wooed into these loans and now facing collection by the U.S. Treasury and there is little information on how to oppose this available. I hope this helps anyone else seeking guidance on this matter.

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