Consumer complaint received 2019-04-06
Company: WELLS FARGO & COMPANY
State: MS
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
My mortgage was purchased in XX/XX/XXXX. At the time, the loan originated with XXXX XXXX with underwriting done by XXXX XXXX. The loan was bought by Wells Fargo who is now the servicer of the loan. 

The problem began XX/XX/XXXX. My husband heard a sound that sounded like dripping in the master shower. After calling a plumber, we were told that there is a leak from the master shower, and we needed to call a contractor. After calling multiple contractors, we were given estimates between $ XXXX XXXX dollars minimum that were inconclusive due to having to rip out all of the insulation to fully survey the damage. We called our insurance company who let us know that this was a pre-existing condition, and it would not be covered. We were also informed that there is black mold under the home, and the foundation was unstable due to all of the rotten joists and structural beams. I am currently XXXX weeks pregnant, and we had a XXXX year old in the home. Also, I suffered a XXXX just 4 months prior to the initial finding of the damage. We called the XXXX who sent information stating there is to be no children or infants in a home with mold. Contractors informed us to fix the damage would require moving out of the home, and it would be an extremely lengthy process. The rental market in the area where we live is extremely limited and small. 

Upon hearing about all of this damage and knowing that we could not afford our mortgage and an additional rent or mortgage, while also paying for repairs on a home that we already put {$30000.00} into, I contacted Wells Fargo. There were questions that I had regarding the origination of the loan as the loan was purchased with a USDA Rural Development Loan which is required to meet certain standards. On the Wood Destroying Insect Report ( that Wells Fargo has a copy of with my loan documents ) ; it mentions that there is standing water under the home. I was not notified of this by the underwriter, and the paper was not seen by me until the day of closing. The loan appraisal is also required to meet certain specifications such as photos of the crawlspace. Most importantly, the inspector that I used did not report any issues whatsoever with the crawlspace. The appraisal for the loan stated that the home was on a slab. Wells Fargo researched into the origination of the loan and declared that they would be unable to assist with any origination issues due to the loan originating with XXXX XXXX. ( I was not given any documentation of this origination investigation by Wells Fargo. ) I spoke with multiple representatives at Wells Fargo asking questions about how to get a forebearance to buy myself some time to hire a lawyer and I was told that Wells Fargo does not offer forebearance options. ( Again, I was not given any documentation of this at this time ). 

I planned to sue for the damages so we could afford to fix but after months of reaching out to multiple different attorneys ( can provide documentation ) with absolutely no one wanting to help or take our case, we knew we had to do something. After being out of all other options and needing a safe place to live with my family, I purchased a second home in XX/XX/XXXX. I  contacted Wells Fargo about starting the process for a deed in lieu of foreclosure due to hardship and being unable to now sell the home with the damages and mold. The phone call took over two hours to be connected to the correct department along with wait times and multiple disconnections. Finally, I was connected with XXXX XXXX, who was my preservation specialist. For my first request, she sent me the application, and I left her a voicemail asking her to send me an additional required form Schedule of Real Estate Owned so I could document my second mortgage as part of my expense calculation. After not receiving the form, I called her to let her know that I needed an additional form showing my second mortgage. She told me I did not need to submit this, and they would be in touch if they needed other documentation. I also asked her if I needed to submit hardship documentation or if they had record from our phone calls, and she again stated that I did not need to submit this, and they would be in touch if they needed other documentation. My first request for loan modification was denied as it was obviously an inaccurate picture of my expenses without my second loan. I reached out to another preservation specialist XXXX XXXX who got the correct form to me and told me that a hardship letter would not be a bad idea, and we started an appeal. Wells Fargo Loan tracker online does not load any information documenting my requests or progress and I mentioned this to XXXX as well. ( See Attached ) I did receive a letter for my first denial ; however, when calculating affordability, it uses my pre-tax numbers and does not consider income taxes nor my deductions from my employer. On XX/XX/XXXX, XXXX called me to let me know that my appeal was denied. No one from the company asked for any documentation. I asked her if I had any other options, and she said no just traditional sale. I asked her how I would be able to traditionally sell a home with {$80000.00} damage and black mold to which she did not respond. She stated I would owe Wells Fargo the difference between whatever I could sell the home for and the outstanding mortgage. I have not received a letter of the answer to my appeal request as of todays date, XX/XX/XXXX. 

During the length of the loan, I was never late on a single payment. I used a realtor and the home was purchased from a seller with a realtor. I got an inspection. I did everything I could possibly do as a consumer to protect myself. I did not not ever plan on moving as I put {$30000.00} worth of improvements to the home before finding out about the severe damage. I am now stuck with a home that I cant sell, cant fix, cant live in, and my mortgage servicer is not giving me any options to help my situation. I also have a newborn baby coming for which I will have to take maternity leave, and I have drained any savings to procure a safe living environment for my family. Please help. 


See attached documentation for request and appeal. 

>Original request and response >Appeal request ( includes additional form showing my second mortgage, and also a letter summarizing my hardship ) > Wells Fargo website views that lack any information regarding my request >Wells Fargo email from XX/XX/XXXX stating I will have appeal answer and options soon Further documentation regarding the hardship as far as lawyers not taking case, property inspection, property disclosure, property appraisal, notes from plumber can be sent upon request if needed. Also, I can provide the paystubs I provided to Wells Fargo for the decision showing that my income after taxes and deduction is not adding up to the number in their decision. 

I am not one to complain but I truly feel as though Wells Fargo is not taking my claim seriously, not providing me with any other options, and thus giving me no other option but to foreclose on the property. Please help.

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