Consumer complaint received 2018-04-26
Company: WELLS FARGO & COMPANY
State: AZ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
I have held an FHA mortgage with Wells Fargo since XX/XX/XXXX, loan number XXXX. I have owned this home since XX/XX/XXXX.  Never before had I missed a mortgage payment with Wells Fargo, or my previous loan processor despite significant financial hardship incurred during XX/XX/XXXX-XX/XX/XXXX due to losing my job in the financial industry. In XX/XX/XXXX, I inquired about a modified payment plan on my mortgage ending in XXXX in order to help me stay afloat. Wells Fargo informed me they did have a 6 month plan where I could reduce my monthly mortgage payments from {$1100.00} down to {$320.00}. Not once during the process was i informed of the need to complete a loan modification at the end of the 6 month period. I was approved for this plan, and began making reduced payments on XX/XX/XXXX. Not once did I miss a scheduled mortgage payment during this period. Nor did I receive regular monthly statements informing me of what was going on with my loan. At the end of the six month period, I received a notice of foreclosure on my property unless I paid an overdue balance of {$8100.00}. This was, of course, a severe shock to me as nowhere was this ever disclosed. After speaking to Wells Fargo on multiple occasions, I was informed that none of my 6 {$320.00} payments were applied to my loan, they were held in an " un-applied funds '' state. They informed me I had three options, pay the overdue balance, apply for a loan modification, or lose my home. Seeing no other choice, I applied and went through the loan modification process. At the end of which, after supplying tremendous amounts of documentation to WFHM, I was declined as they determined I did not have sufficient ability to repay my loan, despite having a full time job earning a reasonable salary. At this point I either had to come up with {$8100.00} or lose my home that I had built a significant amount of equity in. I was able to scramble to pay the overdue balance by borrowing funds from family, however, to add insult to injury, I later found out that Wells Fargo had reported me as 180 days delinquent on my home mortgage, despite having made every scheduled payment on time. I contacted Wells Fargo multiple times, and even wrote a letter to the executive escalations team to have these late payments removed from my credit and a refund of any fees that were assessed to me from the 6 month modified payment plan, however I never received any resolution. Due to the late mortgage payments reported to my credit, my wife and I experienced severe hardship as we were unable to purchase a home for many years after the fact due to the damage to my credit that was unjustly done by Wells Fargo. I have always felt this was a blatant fraudulent attempt to seize my property through shady mortgage tactics, offering hope to someone experiencing financial hardship only to step in at the last moment to take my property under the guise of foreclosure.

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