Consumer complaint received 2019-01-09
Company: WELLS FARGO & COMPANY
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
A bit of history : I applied for a modification around XXXX after I had XXXX XXXX XXXX and I lost my job during the recession. I had a very difficult time finding a job so I decided to pick back up where I left off with school to increase my chances of obtaining a job. I forwarded all the documentation Wells Fargo requested and they gave me a bit of hope for a modification. But my request for a modification was denied ; time after time. Even after securing work and submitting employment information to Wells Fargo, my request for a modification was denied. Even still, I continued to pursue a modification ; several times over and over ; with continued rejection. Finally, Lord and behold, on XX/XX/XXXX I received the attached document ( XXXX ) from Wells Fargo advising that they recently reviewed their internal processes and procedure for accuracy and determined that a miscalculation was made in the evaluation of my previous loan modification applications. I dropped to my knees and cried. I immediately dialed the number on the letter and cried with joy to the contact person named on the letter. He expressed how important it was for me to read over the letter and attached documents, sign them and return them as soon as possible. 

The terms of the modification were great for the most part, not too unbearable. Wells Fargo advised that before they can move forward with the modification I would be required to sign and return the attached document ( XXXX ) which states that I Voluntarily Terminate my FHA Mortgage Insurance and by executing the form attached, I understand that I will no longer be governed by FHA insurance program rules and regulations, including FHAs loss mitigation requirement set forth in 24 CFR 203.501. 

To say the least, I was highly concerned by the need to terminate my FHA ties. I escalated this matter with Wells Fargo and instead of an alternative, I received the attached letter dated XX/XX/XXXX stating that I indicated that I am satisfied with my current situation and declined their offer. That was Wells Fargo 's all or nothing assessment. I explained to the Wells Fargo rep over and over again that I am seeking a modification, letting them know that I was totally not satisfied with the current situation of not knowing where me and my children would be living and am seeking a modification ; however I would like to remain with FHA. The terms of their offer included unpaid principal of {$310000.00} for a home worth {$86000.00}. There was even a ballon payment of {$93000.00} which would be due after 30 years of payment ; that was not a major concern for me because I was in school and felt that by the age of XXXX I would prayerfully be in a position to pay off the house. 

I have prayed for a modification and submitted paperwork through the XXXX XXXX XXXX XXXX XXXX ( XXXX ) in  XXXX ( 3 times ), took a cheap flight to another XXXX sponsored save your home program in XXXX ; I left home in the XXXX and returned late that same night ; I have driven to XXXX  to attend yet another XXXX seminar for help, attended several Wells Fargo Home Preservation seminars in my local area, visits to the XXXX XXXX XXXX and the XXXX XXXX XXXX XXXX   XXXX all in an attempt to obtain a modification. I continued to be denied. I even presented Wells Fargo with two separate Short Sale applications, both were denied. I lost the house through foreclosure on XX/XX/XXXX. 

Just the other day a friend forwarded a XXXX XXXX report ; it show how a Wells Fargo computer glitch is partly the blame for errors affecting many customers, causing customers to lose their homes. The XXXX XXXX report mentions the same letter I received explaining their miscalculation error but just like me, it's too late to save the homes in jeopardy. The XXXX report also states that Wells Fargo has recently been required to file papers with the Securities and Exchange Commission revealing it incorrectly denied loan modification request where the homes involved went into foreclosure. 

I am a victim of the above. I drive by my ( the ) home everyday and wonder what could have been. I have paid the ultimate price for Well Fargo 's erroneous - miscalcuation.

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