Consumer complaint received 2023-10-09
Company: WELLS FARGO & COMPANY
State: SC
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage
Sub-issue: Application denials

Complaint:
I applied for a XXXX  XXXX loan modification of loan for a home located in XXXXXXXX XXXX XXXX in XXXX after I transitioned from the military in XXXX and had a hard time keeping up with my mortgage payments. After applying for the loan modification, I was assigned to work with Home Preservation XXXX XXXX XXXX XXXX and later XXXX XXXX XXXX from XXXX XXXX and submitted all of the documents required for my loan modification request each time. Wells Fargo initially stated that my debt-to-income ratio was too high and that they could not modify the loan. Upon denial I noticed that in their breakdown of their explanation that they were not counting all of my income in the debt-to-income ratio calculations. I later filed an appeal to their decision after I submitted all my income for consideration as I had acquired a higher paying job, rental income for the property, court ordered child support and had VA XXXX XXXX XXXX XXXX XXXX however I was still denied. In desperation to lower my debt-to-income ratio that they stated was the issue in order to acquire a loan modification to keep my home. I filed for XXXX XXXX  bankruptcy in XXXX to clear my debts. I then went back to Wells Fargo and filed for a loan modification where they stated that I could not qualify for a loan modification due to derogatory or negative items on my credit report. I later got another high paying job that made my debt-to-income ratio better and still could not get approved for a loan modification. I provided all of the documents that Wells Fargo required of me, but Wells Fargo always drafted a false excuse as to why my loan couldnt be approved. In an effort to save my home I reluctantly filed for XXXX XXXX Bankruptcy in XXXX to stop Foreclosure proceedings on my property. This resulted in me having a higher repayment payment due to the past due balance being condensed over 5 years vice loan modifications or workout considerations that should have been offered by Wells Fargo. Due to the extra payments required under the XXXX XXXX I had to sell the property to an investor in XXXX. Due to the Wells Fargo refinance discriminatory practices, I lost out on {$230000.00} in equity and value for what the house is worth today. If I was afforded the opportunity to have had my loan request correctly processed. I bought the house for {$110000.00} and the house is now valued at {$350000.00}. Wells Fargo acted under discriminatory and illegal practices when handling my case while going through its XXXX XXXX XXXX for consideration for a repayment plan, loan modification or partial claim. These acts conducted by Wells Fargo caused significant stress, residual financial implications and limitations due to the bankruptcies being on my credit after trying to protect my home from foreclosure due to my applications and income not being rightfully considered during mediation.

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