Consumer complaint received 2016-10-09
Company: WELLS FARGO & COMPANY
State: MI
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
I filed for Bankruptcy Chapter XXXX on XX/XX/XXXX, in an effort to save my home from foreclosure. During the course of my Bankruptcy my lender filed a motion to lift the automatic stay and proceed with the previously scheduled Sheriff sale. Soon after I received communication with the bank offering me the opportunity to apply for a loan modification for both mortgages. ( I had applied for loan modifications at least 4 times prior to filing for Bankruptcy but was denied each time ). The motion to lift the stay was withdrawn after I accepted the opportunity and applied for a loan modification for my first and second mortgage with Wells Fargo on XX/XX/XXXX. 
I received an offer with a trial payment plan for my primary loan on. I accepted the banks proposed trial payment plan and made payments in accordance with the trial period. Because I had not received a response regarding my application for a loan modification on my 2nd mortgage I notified the lender to remind them that my application for modification of my 2nd mortgage was still outstanding. 
Despite having not received a decision on my application for a loan modification on my second mortgage Wells Fargo offered to modify my primary mortgage at the end of my trial period. I accepted the offer to modify my primary mortgage. I have been paying the mortgage in accordance with the agreed terms. The problem is with the second mortgage/equity loan. Throughout the process I have been trying to get a written response from the bank regarding my application for a loan modification on the 2nd loan. 
I finally received a proposed trial payment plan for my 2nd mortgage from the mortgage company XX/XX/XXXX. I found the plan unacceptable based on my income and the property 's ' value. The proposal I received gave me until XX/XX/XXXX, to appeal the offer and to offer additional information in support of my appeal. I availed myself to the appeal process in a timely manner. Since filing my timely appeal I have tried without success to get a written response from the bank regarding its decision on my appeal. I have never received anything from the bank regarding my appeal despite being assured that I would. 
Now 10 month later and I have received the attached letter on XX/XX/XXXX, advising me that I had failed to comply with the trial period payments for the 2nd mortgage and that the property will be subject to foreclosure. The bank has never given me a decision regarding my appeal. After receiving the XX/XX/XXXX, letter on XX/XX/XXXX, from the assigned Preservation Specialist I forwarded written communication to her via fax expressing my shock upon receiving this letter in light of my numerous efforts to get communication from her regarding my XX/XX/XXXX, appeal as promised and requesting that she provide me with another application for a loan modification for the 2nd mortgage. As of the date of this letter she has not responded to my communication. 
On XX/XX/XXXX, I received the attached " Notice of Right to Cure Default ( Real Estate ) ''. The 2nd mortgage was effectively discharged in the bankruptcy because the bank had not processed my application for loan modification nor was an offer of settlement or an agreement made between the me and the bank regarding this loan. 
While the XX/XX/XXXX, communication from the lender states that it is not an attempt to collect a debt it in fact is. This letter does exactly what the lender states it is not intending to do. This content of this letter violates the US Bankruptcy Code. Saying it is not an attempt to collect a debt does not forgive the actual language used in the letter. 
Communication and not following policy has been my experience with Wells Fargo from the onset of my problems with paying my mortgage.

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