Consumer complaint received 2018-06-21
Company: WELLS FARGO & COMPANY
State: OR
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
In XXXX, I originally secured a new mortgage for my home with XXXXXXXX XXXX XXXX who set up monthly payments to be automatically withdrawn on the first of every month. At some point, they sold my mortgage to Wells Fargo bank who have had it for 10 years. Several months ago I was having much financial trouble and applied for a lower rate mortgage that was approved and I was charged {$750.00}. for a home assessment and told a few times the new mortgage was closing but after 6 mos. of EVERY month finding SOMETHING else that must be done first, I ended the process for bad faith and now my financial problem had worsened! So I wrote to Wells Fargo to explain how instead of paying off the old mortgage I had stopped the process. But now I was unable to pay the month 's mortgage. They mailed papers to me which I filled out and returned to them. They then processed the papers and offered me a three month trial period lower payment of {$1500.00} instead of my {$1900.00} payment.. I thanked them and said that would help. So my XXXX XXXX payment was the lower amount but then, without explanation, in XXXX. and XXXX the bank withdrew the normal {$1900.00} again! But then I received a call from my Wells Fargo specialist who told me I had qualified for a modified mortgage at the new lower amount at the same finance rate but extending the payoff time to 40 years in order to repay my unpaid amounts owing. I signed the modified mortgage on XX/XX/XXXX in my home through a notary. Term Extension To reduce your mortgage payment we may extend the term of your mortgage. This means we spread your payments over a longer period. Escrow Amount The terms of your agreement require the servicer to set aside a portion of your new monthly payment in an escrow account for payment of your real estate taxes, property insurance, premiums, and other required fees. Upon acceptance of the offer, any prior waver of escrows by your lender is no longer in effect. Wells Fargo Mortgage will draw on this account to pay real estate taxes and property insurance premiums, as they come due. Please note after your modification is complete, your escrow payment amount will adjust at least annually if your real estate taxes, property insurance premiums and/or assessment amounts change so the amount of your monthly payment that Wells Fargo Home mortgage must place in escrow will also adjust as permitted by law. This means that your monthly payment may change. Your initial monthly escrow payment will be {$200.00}, which contains the separate escrowed amounts listed above. This amount is included in the loan payment noted in Section 2 of the enclosed modification Agreement ; you do not need to remit this amount separately. Escrow Shortage Due to the timing of your real estate tax and property insurance payments, we have determined that there is a shortage of funds in your escrow account in the amount of {$1200.00}. You may pay this amount over a 5 year ( 60 month ) period. This additional {$20.00} a month has already been included in the monthly escrow payment stated above and in the loan payment noted in Section 2 of the enclosed modification Agreement. Details of your loan modification Agreement 1. Due  date of first payment XX/XX/XXXX 2. New principal balance {$230000.00} 3. New principal and interest monthly payment amount {$1300.00} 4. Escrowed real estate taxes monthly amount {$110.00} 5. Escrowed property insurance monthly amount {$68.00} 6. Escrowed shortage monthly amount {$20.00} 7. Total monthly escrow payment {$200.00} 8. Total modified monthly payment {$1500.00} This  payment amount includes principal, interest, and if applicable, escrow and escrow shortage amounts 9. New maturity date XX/XX/2058 10. New interest rate 6.375 % Isn't this a nice helpful agreement? At least, I THOUGHT the bank was trying to help me until I suddenly felt as if I were dealing with TWO Wells Fargo 's!! Without ANY notification, on XX/XX/XXXX, I had in excess of {$1600.00}. to cover my new mortgage amount only Wells Fargo charged a {$35.00} shortage fee because they couldn't process a NEW amount of {$1900.00}. 26!!!! When I go to my online banking, the mortgage payment shows as {$1500.00} but somehow the bill pay amount the bank withdraws automatically each month has the OLD amount. I thought these folk must not communicate with each other but that wasn't the problem. I was told that they ( WF, I guess ) can change the amount per my agreement whenever they want to. If this is true, why would ANYONE sign such an agreement? Would YOU? I certainly would NOT have added all those years MORE of payments just to fatten up the BANK 'S coffers!! If THIS is our 21 century bank agreements, then I think the XXXX must be pikers!

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