Consumer complaint received 2016-07-03
Company: WELLS FARGO & COMPANY
State: MI
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I am having trouble dealing with Wells Fargo about my son 's mortgage. My son, has a mortgage with Wells Fargo he has given me third party authorization so I can call and talk to them on his behalf to do a short sale for his home. he lived in the home with his wife and XXXX dogs. 

Reason for the short sale he had a fire in the kitchen on XXXX XXXX, 2015 which destroyed the kitchen and living room and smoke and soot damage to every room in the house, the house needs to be totally gutted and redone inside. XXXX XXXX was the insurance company, who denied claim, claiming arson. He had all payments up to date until the claim was denied, he was forced to stop making payments because he had to find a new place to live and buy everything he needed furniture, pots and pans etc. 

XX/XX/2015 we asked to do a short sale and started the paperwork, sent them a hardship letter, bank statements, check stubs, police report, fire department report, insurance papers, quote for house repairs, so they should have all this in a file. Someone even called me back to tell me she received the fax and that after talking with their legal department I was right that Wells Fargo can and will file their own claim with XXXX XXXX for damages. I bought a appraiser though the house who Wells Fargo sent who said he never had to appraised a house after a fire before, he said to list it for {$34000.00}. Then arson charges were filed, everything was put on hold, the lawyer wanted no one in the home pending his own investigation. After several months this issue was resolved so in XX/XX/XXXX we contacted Wells Fargo about doing the short sale again. We were told what papers to send them to get the short sale approved. 

We were told a XXXX XXXX was assigned the file, when I contacted him he said he was not on the case any longer, very next day I get a letter in the mail telling us that XXXX is charge of the file and contact him with questions. Then XXXX signed a listing agreement with realtor XXXX XXXX and sent in third party authorization so they could deal with XXXX directly getting this sale moved forward. The realtor sent them the listing agreement and a offer he had on the house, the offer was turned down by Wells Fargo. The realtor was contacted by Wells Fargo saying they needed additional forms and also a hardship letter as to why they needed to do a short sale ( they already had this ) to go though with the short sale so they prepared new paperwork and faxed everything to them on XXXX XXXX. They had set a foreclosure date which they changed giving us time to get the paperwork in and approved for a sale. Also on XXXX XXXX the realtor sent in a second offer which he heard nothing from Wells Fargo, then on XXXX XXXX he received a letter saying sale denied to close to foreclosure date of XXXX XXXX, which when you call Wells Fargo the recording already says the foreclosure date was changed to XXXX XXXX. 
I then called Wells Fargo back told them I talked with Consumers Financial Protection Bureau, they put me on hold then connected me with XXXX XXXX the head of the department to resolve this and get things moving forward. After explaining everything to him was told he would look into this and get back with me, told me to fax him a copy of the short sale offer for it would help him in getting this matter resolved, would get back to me in seven days. Also told him that the insurance company would have to pay Wells Fargo for damages from the fire so with that money and the sale of the house they would be able to get the loan covered in full, so it would be better for them also to sell and not foreclose the property. After waiting still no phone call or letter from him, I feel they are no help at all and are doing nothing to help us. 
Any help you could give us would be greatly appreciated.

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