(KMOV) -- Seven years after the recession hit, the battle is dragging on for area residents attempting to save their home from foreclosure.
Arza Mumma bought his Fairview Heights home in 2006 but in October of 2008 he sought out help from Wells Fargo after his finances had “turned upside-down.”
Wells Fargo told Mumma he was “pre-qualified” for a loan modification and for two years he thought he was working toward a new loan agreement.
In 2010, Mumma found out Wells Fargo had put his home up for auction. He contacted his attorney, Jim Davis and sued Wells Fargo.
A few weeks ago, the 9th Circuit Federal Court found that Wells Fargo violated the terms of the Making Homes Affordable loan modification act.
Davis believes the ruling has national implications. “What this case recognizes is that directive that federal government gave to these banks was part of the bailout, part of the TARP, saying, we're going to give you this money but there are certain things we ask you to do for us to help these borrowers."
The court ordered Wells Fargo to modify the homeowner’s mortgage which Mumma is hoping will happen to him in his case.
“This is not what I thought retirement would be like. thought I'd be able to travel a little bit, have some fun and enjoy the rest of my life I had,” Mumma said.
Davis said the recent ruling should encourage anyone considering legal action against a lender.