Consumer complaint received 2017-06-09
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
I had a line of credit with  Wells Fargo Bank.  The account was established in  XXXX . In  XXXX  payments stopped due to divorce. The account was charged off and I was told that they were going to write the amount off as a loss due to the house being  upside down . They told me that I would receive a  XXXX . I never received a letter stating that they had sold the account or the servicing of the account. I was contacted by a company by the name,  XXXX  stating that they were working on behalf of  Wells Fargo Bank  to collect on the debt. I then filed bankruptcy and listed both  Wells Fargo Bank an d   XXXX   XXXX  . My ex-husband was living out of state and managing the property. I was living in another location.  <P/> In  XX/XX/XXXX  a company by the name of   XXXX   XXXX   XXXX   XXXX   stated that they bought the Heloc from  XXXX  and they attempted to foreclose on the property and did an unlawful detainer. I was never notified of any of these activities. Well, the first loan is with   XXXX   XXXX   and they own  XXXX  of the property.   XXXX   XXXX   XXXX   state that they paid  XXXX  for the  Heloc. Th ey also paid  XXXX  in mortgage payments after the house was not being rented out and another  XXXX  in taxes and insurance on the property. They then did renovations exceeding  XXXX . The house is only worth  XXXX , so there is already a problem. We still have the first loan with  XXXX .   XXXX   XXXX   XXXX   XXXX   paid the mortgage account still being in my name. The same account number and loan contract. Here 's the problem.  Wells Fargo Bank  claims to have sold  the Heloc  to   XXXX   XXXX   who had their license revoked and could not do business. The IRS had the secretary of state revoke the license.  XXXX  is also  XXXX  and they also had their license revoked and could not buy or sell as well as servicing the loan.  <P/>   XXXX   XXXX   XXXX   XXXX   is linked to these companies under an umbrella. They were playing the shell game.  Wells Fargo B ank claims to have sold the Heloc in  XX/XX/XXXX  to  XXXX . This is when their license had been revoked. They could not do business in California or Nevada. My property address is   XXXX   XXXX   XXXX   XXXX    XXXX   XXXX , Ca  XXXX . The secretary of state says this was unlawful and for me to contact the DOJ to report it. If the original sell was unlawful than everything after that should be null and void and they should go back and deal with the people that were unable to buy the HELOC from them. I contacted  Wells Fargo and told them about this company that had done an UD an d was trying to take my property. I told them that   XXXX   XXXX   had their license revoked and could not to business. I told them that the company went out of business prior to the purchase and has problems with IRS.  <P/> I subpoenaed the documents and asked to see the sell documents between  Wells Fargo and   XXXX . I asked that they provide me with a legal answer as to how it could be lawful to sell the servicing and loan to a company that is unable to do business and had their license revoked. They were unable to answer and stated that it is proprietary information and they do n't have to disclose. I subpoenaed the check from the sell and the names of the people involved in the transaction as well as the sell documents . Wells Fargo state d that it is all proprietary information and even if I had a Notice to  Consumer th at they would be unable to give me that information. This seems like fraud and this company,   XXXX   XXXX   XXXX   is unable to show that they purchased the HELOC from themselves or their sister company. They also are owned by  XXXX , who had their license revoked. The money that they put into the property with only purportedly having interest in the second or junior loan does not make sense. The figures do n't add up. They would take a loss and not to add in that they had legal fees for the illegal unlawful detainer that I was never notified about.  <P/>  Wells Fargo Bank p rovided me with a  two page docum ents stating that they had mailed it to me regarding the sell. The document does not have the  Wells Fargo  Bank logo and the paragraphs are off centered like it was manufactured. I have copies to share with you.When   XXXX   XXXX   XXXX   XXXX   purportedly bought the  Heloc they did  not have a license in California. They did not get their licensing until  XX/XX/XXXX  under   XXXX   XXXX   XXXX   instead of   XXXX   XXXX  , the previous owner, who has his own legal troubles in Nevada and with the IRS. He filed Bankruptcy and did not list my property in the bankruptcy under his assets under the business,   XXXX   XXXX  . He then sells it to his buddy,   XXXX   XXXX  , who takes over the name   XXXX   XXXX   XXXX   XXXX  .  <P/> If a company has had their license revoked and they are unable to service the loan, can a bank still sell  a Heloc to peo ple using that company 's name and business license? Am I entitled to a legal answer as to how this is lawful? Am I entitled to verify that a transaction actually took place? I subpoenaed the documents under my divorce case. I have not filed a lawsuit against these people yet. I am still trying to gather the evidence after just recently finding out about this.

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