Consumer complaint received 2017-12-01
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
My problem is with Wells Fargo. It began when their subsidiary XXXX XXXX steered me into a negative amortization loan, and then kept convincing me this was in my best interests and refinanced me 4 times in 4 years into these toxic pick a payment loans. I did not know about the prepayment penalties I was paying each time nor was I aware of the fact that if I made the minimum payment that my balance would go up. I now realize that Wells Fargo specifically targeted minority borrowers and steered them into predatory, more expensive mortgage loans. It was no surprise to XXXX XXXX then Wachovia that my payment went from {$1500.00} to {$3900.00} and that I could no longer keep up. When I called and asked them for help they told me that since I was current I did not qualify and told me I must go late to be considered for help. After falling behind, I applied at least 25 different times but was never able to get a full review completed. I filed Chapter XXXX bankruptcy to reorganize my debt. I made my monthly payment as agreed for 5 years. During the bankruptcy I applied for modification and was finally able to get Wells to complete a review inXX/XX/XXXX However, they miscalculated my income and told me I did not qualify. I contacted Wells and told them they had made an error in the income and put together a new package for their review. My bankruptcy ended up being discharged in XX/XX/XXXX and instead of continuing to review my modification package Wells Fargo IMMEDIATELY scheduled a foreclosure sale date in violation of the California Homeowners Bill of Rights. I was able to get the court to allow me to re-enter Chapter XXXX bankruptcy protection to resume my monthly payments, with the caveat that I get Wells Fargo to negotiate with me for a modification. 

I bought my house in XXXX, and was solicited by XXXX XXXX in XXXX and convinced that it would be in my best interests to refinance into a pick a payment mortgage loan. I did not fully understand how this loan worked, that if I paid the minimum payment the balance would go up and the loan would re-cast. XXXX XXXX contacted me again a year later and convinced me to get a credit line for {$46000.00} in XXXX XXXX, then another first mortgage for $ XXXX 20 MONTHS LATER AND THEN A THIRD REFINANCE IN XXXX XXXX for $ XXXX. All the loans were pick a pays, I thought these were good loans because I believed the lies I was being told by XXXX XXXX even convinced my parents to refinance with XXXX into one of these loans. Then as values dropped I was shocked to find out how this loan really worked and what was going on. My payment went from {$1900.00} a month and in XXXX when the recession hit it was {$3500.00} a month. I could not believe itmy restaurant was struggling because of the financial crisis and my mortgage payment had literally doubled. That was the beginning of the end. 

Wells Fargo has a history of intentionally steering minority borrowers into risky subprime loans. XXXX XXXX saw me ( a trusting XXXX XXXX man ) as someone they could take advantage of, and convinced me to refinance my property 4 times in 4 years. On each loan they were raking in enormous points and fees and prepayment penalties that I was paying for. There have been multiple lawsuits and judgements against Wells Fargo in cities such as XXXX, XXXX, XXXX, and a {$170.00} million settlement with the DOJ. Wells Fargo INTENTIONALLY took advantage of me and put me into multiple predatory loans. They have continued to discriminate and treat me poorly by refusing to accurately review my financial information and failing to offer a resolution after I paid them for 5 years. They have continued to discriminate by setting a foreclosure sale date weeks after my bankruptcy was discharged instead of negotiating or working with me.

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