Consumer complaint received 2018-02-15
Company: WELLS FARGO & COMPANY
State: PA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
Hello CFPB, My name is XXXX XXXX On XX/XX/2015 I purchased a single-family two-story house at XXXX XXXX XXXX in the city of XXXX. 
Before purchasing this house I was going to buy a house in XXXX XXXX but I was told by the XXXX XXXX XXXX agent XXXX XXXX, the XXXX XXXX XXXX XXXX and there was a huge sign on the property when I saw the house, XXXX XXXX a representative with Wells Fargo, XXXX XXXX XXXX a representative with the Housing Authority of the City of XXXX, that the property had a 10-year tax abatement. This was one of the main incentive that led me to purchase this property. 
I moved in paid my mortgage {$390.00} on time for a year. I started getting statements from the bank saying my mortgage went from XXXX to {$1200.00}. My neighbor and I went to the City of XXXX Treasurer Department. We met with the Assistant Tax Supervisor, XXXX XXXX, she told us there was no 10-year tax abatement for our property. She also said the proper paper work was not file within the 180 days. All the agencies involved are playing the blame game. I believe they all knew and they withheld this information from us. 
The bank set my loan up incorrectly, the account did not set up an escrow for taxes as you can see below therefore it cause me to go into foreclosure. At the closing on XX/XX/2015 the XXXX XXXX XXXX XXXX did not tell me there was not a 10-year tax  abatement. 
The bank did not do its due diligence they did not consider Regulations Y and Regulation Z when setting up my account which caused me to go into foreclosure. I sent payments to Wells Fargo and they returned the money in a check and a letter telling me they had to report this as income to the IRA. I thought when I signed the Settlement Statement ( Hud-1 ) it was a legal document that must be followed and upheld. I thought it was a contract. In that contract it had, No Tax Proration Applicable Currently tax exempt Property Im confused because according to this contract Wells Fargo has breached this contract. Based on the words in this contract why would they change my payment from XXXX to XXXX then to XXXX to XXXX I dont understand what they done but I dont think it was right. 
I would like for someone to help me because this is just unethical Behavior, all these agency just lied to us. I feel they set us up for failure. I remember a couple years ago when the banks had financial problems the government bailed them out, what about the common people like my neighbors and I. Who's going to bail us out? This is not fair that they continue to do predatory lending taking advantage of people and no one stops them. This is illegal what they have done to us. This situation just ruined our lives, and credit whos going to bail us out? Who's going to assist us? My neighbors and I are low to moderate income, we believed our house was a blessing and we wanted the American dream to become a Homeowner not to be facing homeless. 
Sincerely, XXXX

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 non-monetary relief