Consumer complaint received 2019-04-22
Company: WELLS FARGO & COMPANY
State: MD
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
Step 1 : What is this complaint about? 
My home located XXXX XXXX XXXX, XXXX XXXX MD XXXX sustained water damage XX/XX/XXXX. The lending institution 1. Wells Fargo has been holding on to funds in an escrow account for over two years refusing to release funds for the repair of the home or for the mold clean up. Funds that were issued by my insurance company XXXX ( with Wells Fargo and contractor XXXX as the co-signers ), in the amount of {$86000.00}. When the home was 50 % complete Wells Fargo did an inspection on the home before releasing any funds to the contractor XXXX. Wells Fargo found that the repairs were substandard ( warped wood flooring on throughout the first level, living room, dining room, kitchen, family room and sitting room ) and would not release the funds to the contractor and advised me. Wells Fargo failed to put any type of stipulation for release to the contractor. And refusing to release any funds needed to make the necessary repairs or mold cleanup has kept this family out of their home and when in the home has led to health issues as well as financial hardship.

2. XXXX the insurer, not only continued to send all funds to the lending institution, Wells Fargo, after I asked them not to because Wells continued to hold all funds meant to repair the home in an escrow. This Wells Fargo did for over two years causing me and my family to fall into financial hardship while paying additional expenses on a displaced family rental apartment, utility, and expenses on the empty molded home to include HOA fees, taxes, utility maintenance etc. When trying to get the home repaired Wells Fargo continued to make me jump hoops ( paper work ) with the promise of releasing the funds to contractors for repair, then reneging on the promise ( XX/XX/XXXX Wells had me sign an indemnification to protect themselves from my assisting XXXX with a law suit against them. This Wells did promising to pay another contractor to fix the home. Once the indemnification was signed Wells refused payment to the hired contractor. ) Step 2 : What type of problem are you having?

1. Financial hardship, Wells Fargo offered to modify the loan but during the process negated on the modification and started the foreclosure process XX/XX/XXXX. Wells Fargo bank retaliated against me when I tried to work out payment for the contractor XXXX by hiring a lawyer Mr. XXXX to negotiate payment for XXXX to go away and end a law suit against me. XX/XX/XXXX I sent Wells Fargo a permission letter for conversation with my lawyer. XX/XX/XXXX Wells Fargo stopped all modification paper work and issued to me foreclosure documents 2. Law suit for {$110000.00} from XXXX. My lawyer formatted a document asking XXXX to settle for the amount of funds held in escrow {$86000.00}. XXXX. To settle the suit and go away ( my intention was to sell immediately and get from under the financial bleeding of paying expenses on two homes. ) Wells Fargo refused to release the money and ask me to let them do another in section to make sure the home was 100 % complete finished.

3. I used my own money to complete the repairs ( corrections were not done only completion of carpet, mold clean up etc. Initially I sent Wells Fargo the required docs that they required a hired contractor to fill out for payment. Wells still refused to pay the contractor. I ended up paying out of pocket. I later sent Wells ' the receipt for reimbursement, Wells still refused to pay me. 

Note : During the inspection Wells Fargo inspectors noted the terrible work that was done by XXXX directly to me ( the wood flooring was warped throughout the first level, living room, dining room, kitchen family room and flower room. Dry walling in the basement was terribly done and water was still underneath the paint. The garage wall was nailed together in some places with no tape or mud and gouges and broken pieces were misplaced together. The paint in the master bedroom and bathroom had been diluted to the point that it looked white instead of the requested color. I took pictures and so did Wells Fargo inspectors ). The inspectors asked if permits had been pulled. I did not know. Wells inspectors stated they were not going to sign to issue any funds and asked that I go to XXXX in MD and check to see if the needed permits had been pulled I did and no permits had been pulled. 

Wells Fargo later informed me that they were putting the funds into an Escrow account. After the inspection, I choose not to move forward with XXXX as a contractor and based on Wells Fargo advice I was told in order to move forward with another contractor I had to terminate my contract with XXXX, which I did. I also asked XXXX to give me a cost estimate on the work that had been done. From that cost I would subtract the cost of any work that had to be re-done over and pay them what was owed. XXXX stated they wanted the full amount of the check {$86000.00} that was issued from XXXX although they had not completed the work. XXXX was only 50 % complete with the work when they asked for the inspection and submitted to me a receipt for {$45000.00} to submit to Wells Fargo for payment ( see attachment ). Carpet had not been put down throughout the basement area or on the second level hall way, two levels of stairs ( one leading from the basement and one stair case to the second level of the home, the master bedroom, the master bedroom closet or hall. Mold had built up in the home on the exposed subflooring, basement, master bedroom and library. 

2. XXXX the insurer, not only continued to send all funds to lending institution, Wells Fargo, knowing that Wells was not releasing the funds to the insurer for repairs, stopped payment on the displaced family rental apartment, utility, etc expenses in an attempt to force payment to their preferred contractor XXXX. 

3. XXXX the contractor did a bad job on the home ( noted by the Wells Fargo inspector XX/XX/XXXX during an n inspection. Walked off the job ( requested full payment on a job half done then lied at court stating they completed  the job 100 % and got a mechanic lien on the home. 
a. XXXX preferred contractor XXXX walked off the job when the home was only 50 % complete due to XXXX failure to make the initial 1/3 payment in a timely manner. When funds were finally made available from XXXX in the amount of {$86000.00} ( XXXX issued full payment in advance ) a check with my name the Wells Fargo and XXXX name was on it. XX/XX/XXXX XXXX and I signed the check and submitted to Wells Fargo Bank for endorsement. XXXX was to receive a 50 % payment for the fifty percent complete of work that was done ( see attachment of XXXX request ). Wells Fargo required an inspection at 50 % before any funds would be release. 
b.XXXX XXXX XXXX put a mechanic lien on my home without contacting me or my knowledge, an appeal is currently place due to XXXX false statement of service and stating that they completed the job 100 % ) the mechanic lien on my property if for more than one hundred thousand dollars. 


4. XXXX XXXX XXXX failed to cure or treat the home for mold when hired to mitigate the water damaged home. XX/XX/XXXX during an inspection with XXXX XXXX XXXX and later refuse to clean up the mold that accumulated in the home when it was brought to the companys attention by the owner XX/XX/XXXX during an inspection with XXXX adjuster. XXXX XXXX stored all the house hold items of the insured for over two years  making contact only with XXXX for payment. XXXX XXXX got its payment directly from XXXX and failed to contact the insurer when XXXX stop paying on the storage and ignored any contact from the insured on the mold that needed to be cleaned from the home so that the family could move back into their home. The insured was forced to pay out of pocket to clean up the mold ( Wells Fargo refuse to release any money for mold clean up also ) When the insured contacted XXXX XXXX for their items they were told that a bill of {$1700.00}, XXXX had to be paid, refusing to release the homeowners items a.XXXX XXXX had failed to properly treat for mold and also left wet items in the basement ( furniture, cloths, XXXX  items etc ).

Step 3 : What happened?

Wells Fargo intentionally held the money meant for repairs of my home in escrow for over two years with the intent of having the home fall into foreclosure and me and my family be financially destitute while trying to hold on to the home pay, pay for repairs and for my family displaced rental and its expenses. 

Step 4 : What company is this complaint about? 
a. Wells Fargo ( property loss department ) email : XXXX Phone : XXXX-XXXX-XXXX, contact XXXX : ext. : XXXX b. XXXX XXXX XXXX : XXXX XXXX XXXX XXXX, MD XXXX c. XXXX XXXX   XXXX : XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX  XXXX, MD XXXX, Toll Free : XXXX.XXXX.XXXX, Fax : XXXX.XXXX.XXXX d. XXXX : Step 5 : what do you want to happen? 
What I want to happen with Wells Fargo : 1. To release the {$86000.00} held in escrow with interest 2. Forgive all mortgage payments owed during the time that I was unable to live in the home while Wells Fargo held the repair funds in escrow {$86000.00}.

3. Pay all rental expenses/utilities/moving cost etc. that I and my family incurred during the time that Wells Fargo held repair funds in escrow 4. Pay interest incurred on credit card due to expenses ( rent, food, utilities on home and rental ) accumulated when repair funds were in escrow 5. Remove all negative reports issued to credit reporting agencies late fees, delinquencies foreclosures etc. from my credit that was due to this event 6, Remove any and all negative items put on credit report 7. Stop foreclosure, continue modification. 

What I want from XXXX XXXX XXXX : 1. To released, deliver and unpack all stored items directly to me without cost 2. To provide me with an inventory of all stored items.

3. To provide me with an inventory for items that were damage and thrown out by XXXX XXXX during clean up 4. Reimbursement for mold clean up 5. Pay for items left in the home by XXXX XXXX during that was damaged by mold build up 6. Pay all rental expenses/utilities/moving cost that me and my family incurred during the time Mold sat in home 7. Pay for cost of mold inspection 8. Pay for TCSM test due to XXXX XXXX letting strangers into the home 9. Pay for clean up on items left in basement that was not address during XXXX XXXX  clean up and were left molded and 10. Pay for all medical and transportation fees caused by the mold build up in the home 11. Pay for interest incurred on credit cards used to cover expenses during mold period 12. Remove any negative credit reports sent in to credit beurea due to past due billing etc. 
13/ to pay for items that were thrown out and not listed or reported to insurance company/me as A loss 14. Pay cost for increase on insurance caused by having to report mold loss due to XXXX XXXX inadequate clean up What I want from XXXX : 1. Pay with interest : all rental, utility, cable, security and food expense etc. incurred during the time me and my family live outside the home due to loss 2. Pay interest etc. incurred on credit card used to pay for food, rent utility mold clean up etc. During loss and time family lived outside of home 3. Pay for all medical and transportation fees caused by the mold build up in the home.

4 Remove any and all negative items put on credit report 5. Pain and suffering cost to family for inconvenience on having to stay in rental for two years when XXXX failed to pay rental, food, utilities etc. 

What I want from XXXX : 1. Remove maintenance lien from home 2. Go away : without payment on the shoddy work that was done ( whether it has to be redone or not ) 3. Pay for pain and suffering caused by the length of time me and my family were not able to live in our home after XXXX walked off the job 4. Pay expenses incurred during time family was out of home during contractors dispute with bank homeowner 5. Remove any negative items put on credit report

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation