Wells Fargo Mortgage Forbearance Settlement 2026, Claim Your Share of the $56.85M Fund Before March 25 Deadline
If you were a Wells Fargo mortgage holder during the COVID-19 pandemic, you may be eligible for a significant payout from a $56,850,000 class action settlement. As of February 2026, a court in San Diego has opened a new window for affected borrowers to verify their eligibility and secure compensation for improper mortgage handling.
Wells Fargo $56.85M Mortgage Forbearance Settlement Overview
The Wells Fargo Mortgage Forbearance CARES Act Settlement resolves a series of legal claims alleging that the bank improperly managed mortgage accounts during the height of the COVID-19 pandemic. Specifically, the litigation claimed that Wells Fargo placed thousands of borrowers into “forced” or “unauthorized” forbearances. Under the CARES Act, homeowners had the right to request a pause in payments, but the lawsuit alleged Wells Fargo triggered these pauses for customers who had only inquired about options or expressed general hardship, without their explicit consent.
This unauthorized action allegedly caused significant harm, including damage to credit scores and the inability for homeowners to take advantage of historically low interest rates to refinance their homes. While a larger $185 million national settlement was finalized in 2025, a specific $56.85 million fund has been allocated to resolve targeted claims in the Superior Court of California, County of San Diego (Case No. 37-2024-00012345-CU-BT-CTL). As of February 2026, the court is moving toward a Final Approval Hearing scheduled for May 2026, marking the last chance for many to receive supplemental damages.
Claim Eligibility and Class Membership
To qualify as a class member in the current $56.85 million allocation, you must meet the following criteria:
- Loan Servicing: You had a residential mortgage loan serviced by Wells Fargo Bank, N.A.
- Time Period: Your loan was placed into a COVID-19-related forbearance between March 1, 2020, and December 31, 2021.
- Lack of Consent: You must have been placed into this forbearance without having provided a written or verbal request for such relief.
- Geographic Scope: This specific fund primarily targets borrowers within the California jurisdiction, though national borrowers should check their “Automatic Payment” status from the broader $185M settlement fund.
Common eligibility questions often revolve around whether you had to be in default. The answer is no; even if you were current on your payments, you are eligible if the unauthorized forbearance was added to your account record.
Claim Filing Procedures and Deadlines
For those seeking “Additional Compensation” beyond the automatic base payment, a formal claim must be submitted. Here is the current procedure as of February 2026:
- Claim Deadline: The postmark deadline for supplemental claims is March 25, 2026.
- Submission Methods: Claims can be filed electronically at www.caresactlitigation.com or via U.S. Mail to the Settlement Administrator.
- Required Documentation: You may need to provide your mortgage account number and “Proof of Harm.” This includes credit denial letters, evidence of increased interest rates on a subsequent loan, or bank statements showing you attempted to make payments that were rejected due to the forbearance status.
- Portal Access: Most eligible borrowers received a unique Claimant ID via mail. If you did not receive one, you can use the “Find My ID” tool on the official website.
Claim Amounts and Payout Calculations
The $56.85 million fund is divided among two types of recipients:
- Automatic Payments: All eligible class members are expected to receive an automatic base payment (estimated at $165–$250 per account) without taking any action.
- Supplemental Compensation: Borrowers who can prove documented financial harm (like losing a home purchase because a mortgage was denied due to the unauthorized forbearance) can claim up to $5,000 or more, depending on the severity of the damages.
Payments are distributed per loan, not per borrower. This means co-borrowers will receive one check, though some settlement terms allow for a small additional co-borrower stipend (roughly $83.33). Disbursements for the current phase are expected to begin in late Summer 2026.
What You Must Know
Critical Eligibility Rules
The most important rule to remember is that “Doing Nothing” will only get you the base payment. If you suffered a credit score drop that cost you thousands in higher interest rates, you must file a supplemental claim. Furthermore, borrowers who were in a Chapter 13 bankruptcy at the time the forbearance was applied may be excluded from certain parts of the settlement fund.
Common Mistakes Claimants Make
Don’t let these errors prevent you from receiving your full compensation:
- Missing the March 25th Deadline: After this date, you lose the right to claim “Additional Compensation” for credit damages.
- Discarding the “Plain Envelope”: Settlement checks are often sent in non-descript white envelopes. Many borrowers mistake them for junk mail and throw away hundreds of dollars.
- Submitting Duplicate Claims: Filing twice for the same mortgage account can flag your claim for fraud, delaying your payout significantly.
2026 Settlement Updates
As of February 12, 2026, the claims portal is seeing a surge in traffic as the March deadline approaches. The court issued an update confirming that the Final Approval Hearing will take place on May 15, 2026. If you intend to object to the settlement terms or exclude yourself to sue independently, those papers must also be filed by the March 25th cutoff.
What to Do Next
How to File Your Claim
- Visit the Website: Go to CaresActLitigation.com.
- Enter Your ID: Use the unique ID from your notice to log in.
- Upload Proof: If claiming damages, upload PDF versions of your credit denial or mortgage statements.
- Certify: Sign the digital form under penalty of perjury and submit.
How to Verify Settlement Information
To confirm you are looking at the correct legal case, contact the Settlement Administrator:
- Official Website: www.caresactlitigation.com
- Toll-Free Phone: 1-888-204-8399
- Email: [email protected]
Whether Legal Representation is Needed
The class is currently represented by Keller Rohrback L.L.P. and other co-lead counsel. You do not need to hire your own lawyer to receive your settlement check. However, if you believe your damages exceed $10,000—for example, if the forbearance led to an actual foreclosure—you should consult a consumer protection attorney before the March 25th opt-out deadline to see if an individual lawsuit is more beneficial.
FAQs
What is the Wells Fargo $56.85M Mortgage Forbearance CARES Act Settlement about?
This settlement addresses claims that Wells Fargo violated the CARES Act by placing mortgages into forbearance without borrower consent, which allegedly damaged credit scores and prevented refinancing.
Am I eligible to claim in the Wells Fargo settlement?
You are eligible if your Wells Fargo mortgage was placed into COVID-19 forbearance between March 2020 and December 2021 without your explicit request.
What is the deadline to file a claim in the Wells Fargo settlement?
The deadline to file a claim for additional compensation for damages is March 25, 2026.
What documentation do I need to file a claim?
You need your mortgage account information and, for supplemental claims, proof of financial harm like credit denial letters or higher interest rate quotes.
How much will I receive from the Wells Fargo settlement?
Base automatic payments are estimated between $165 and $250, while supplemental claims for documented harm can reach $5,000 or more.
How do I file a claim in the Wells Fargo settlement?
You can file electronically at the official settlement portal or mail a physical claim form to the Settlement Administrator.
Where can I find more information about the Wells Fargo settlement?
The best resource is the court-approved website at www.caresactlitigation.com or by calling the toll-free support line at 1-888-204-8399.
Last Updated: February 12, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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