Consumer complaint received 2023-11-13
Company: WELLS FARGO & COMPANY
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage
Sub-issue: An existing modification, forbearance plan, short sale, or other loss mitigation relief

Complaint:
We began the short-sale process in XX/XX/XXXX. The short-sale was denied on XX/XX/XXXX. The reason for this denial is as follows : To date, this loan is extremely delinquent, ( 70 ) months past due. Extreme delay by the mortgagee in completing the foreclosure process has occurred ; therefore, the property is ineligible for inclusion in the Pre-Foreclosure Sale ( PFS ) program. The mortgagee failed to initiate the foreclosure action in accordance with 24 CFR 203.55 ( b ). Once HUD is made aware of this, HUD will deny the properties eligibility to be sold through a PFS. The mortgagee has been instructed to complete the foreclosure action and to make any necessary repairs ( if needed ) prior to conveyance to HUD. 

We feel this ruling is unfair for the following reasons : 1 ) The delinquency of noted of ( 70 ) months was created by the death of the borrower in XXXX, followed by the death of the borrowers next of kin in XXXX, in which this time frame included the pandemic. A new family member had to be legally appointed as administrator of Estate and as of XX/XX/XXXX has been successfully named. These are mitigating circumstances which should be taken into consideration. 
2 ) HUD also sites that the mortgagee ( Well Fargo ) failed to initiate the foreclosure action in accordance with 24 CFR 203.55 ( b ). Any error or impropriety in the filing of the foreclosure process is not the fault of the borrower and thus, the borrower should not be held responsible for that issue created by the mortgagee ( Wells Fargo ). 

As a matter fiscal practicality, HUD 's decision to continue through to foreclosure is fiscally impractical. The amount owed on the property is approximately {$210000.00}. The BPO on the property is {$160000.00}. The property is currently vacant, boarded and has been severely vandalized and in it's current condition not worth the current amount of {$210000.00}. Additionally, the property has an outstanding water bill of {$20000.00} which must be paid by any potential purchaser at time of closing as well as well. In HUD 's response, they also state that " The mortgagee has been instructed to complete the foreclosure action and to make any necessary repairs ( if needed ) prior to conveyance to HUD ''. These requested repairs by HUD will cost a significant amount, easily reaching $ XXXX as 3 floors and a basement must be cleared out and measured by the HUD standard " CUBIC FOOT ''. Additionally, the process to complete sheriff sale from today 's date, ( XX/XX/XXXX ), will take at minimum ( 6 ) months, which means at a minimum ( 2 ) more quarters of property taxes will be due along with the forced casualty property insurance policy payment, vacant property registration, which is progressively punitive because this property being vacant for years is a repeat offender. 

If HUD 's stated reason of the denial is due to the delinquency being ( 70 ) months and/or ( 70 ) missed payments, their decision the extend the situation several more months only serves to make matters and fiscally makes no since, when the matter can be resolved in 30 days from the date of this complaint ( XX/XX/XXXX ). We feel it's for these reasons HUD 's position to force the mortgagee ( Wells Fargo ) not to accept the short sale and move to foreclosure is absolutely the wrong decision.

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