Consumer complaint received 2023-02-17
Company: WELLS FARGO & COMPANY
State: MD
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
Recent events with the problems with Wells Fargo Mortgage has prompt me to revisit my XXXX compliant. I sincerely believe I am owed some restitution for the loss of my home. The reason for me revisiting this issue is, I was MISLED and MISINFORMED by Wells Fargo Mortgage representatives. More specifically, I requested and received a temporary modification loan in XXXX. I specifically informed the Wells Fargo representative that I was retired and was living on a fixed income, that a two year modification would not resolve my problem. I was told that in two years I could reapply for another loan modification. In XXXX I applied for a new loan modification only to be told that by accepting the temporary loan modification rendered me ineligible for a new loan modification. I was NEVER informed that acceptance of the temporary modification would make me ineligible for a new modification. Wells Fargo does not dispute this because they have the tape with me stating my initial concern about the two year temporary loan modification. Furthermore, I sought the assistance of a housing counselor who indicated she had never heard of such a loan modification. I subsequently ending up losing my home via a short sale. I worked hard all of my life, paid my bills, purchased my retirement home only to loose it through horrible mismanagement and misinformation by Wells Fargo. I am XXXX years, this has been a horrifying experience that no one should have to experience especially someone in their twilight years of their life. I sincerely believe I should be compensated for my loss. I have attached one of many previous correspondences sent to Wells Fargo executives that explain my journey of a nightmare for your review. Per your instructions, I have removed my name and account number from the attached correspondence. 


XX/XX/XXXX XXXX XXXX XXXX, XXXX & CEO Wells Fargo Headquarters. RE : LOAN/ACCOUNT XXXX XXXX XXXX XXXX 
XXXX XXXX, CA. XXXX Dear XXXX XXXX, My name is ( name ). XX/XX/XXXX I wrote to you requesting your assistance regarding a home mortgage loan I have with Wells Fargo ( See attachment A ). In that letter I indicated that in XX/XX/XXXX I had received a two year temporary modification that would expire in XX/XX/XXXX which could result in my monthly mortgage loan payment doubling or possibly tripling. My worse fears have come to past. XX/XX/XXXX my Wells Fargo mortgage loan monthly payment went from {$2100.00} to {$3900.00}, an {$1800.00} monthly increase. Whats more alarming, the ARM agreement states The interest rate I am required to pay at the first Interest Change Date will not be greater than 11.750 % or less than 2.250 % which could result in greater future monthly payments. In addition to that increase, my Wells Fargo Equity Line of Credit monthly loan payment effective XX/XX/XXXX increased by {$240.00} from $ XXXX to {$740.00} resulting in an additional {$2000.00} monthly increase and a combine monthly payment of {$4600.00}. I am again, asking for your assistance and praying that you would provide some relief for the situation I am now in. 

To add insult to injury, unlike the Equity Line of Credit Department who provided six months notification of the potential increase and an offer to discuss options that may be available to me, I received NO prior notification from the Wells Fargo Mortgage Loan Department ( for the purpose of this correspondence will be referred to as 1st mortgage ). 

Early XXXX I contacted Wells Fargo representatives to inquire about the expiration of the temporary modification and was told that I could not submit another modification application until 30 days before the expiration of the temporary modification. With the pending XXXX increase of the Equity Line of Credit loan payment ( Equity ), I contacted the Equity Department and it was suggested I apply for another loan modification on behalf of both mortgage loans. I indicated that currently I was able to meet my monthly loan payments as defined by the temporary modification and didnt believe I would meet the qualifications for a new loan modification unless we knew what the 1st mortgage monthly loan payment would be. Wells Fargo Home Preservation Specialist XXXX XXXX said she was unable to provide that information. On XX/XX/XXXX I submitted an application for a loan modification and as suspected my application was denied. 

The XX/XX/XXXX 1st mortgage statement was the first notification that the monthly payment had increased to the new rate of {$3900.00}, due on XX/XX/XXXX. I immediately contacted Wells Fargo and spoke to XXXX XXXX who suggested I submit another modification application since my financial situation had changed. On XX/XX/XXXX I submitted another modification. 

I received a correspondence dated XX/XX/XXXX from XXXX XXXX indicating that I had met the pre-qualifications of the modification subject to the terms of the letter. Effective XX/XX/XXXX my monthly payments will be {$320.00} for the trial period XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX ( see attachment B ). 

Subsequently, I received another correspondence from XXXX XXXX dated XX/XX/XXXX stating we have determined that you are no longer eligible for the assistance program you were initially approved for. The Trial Period Plan package we previously sent is no longer valid and should be disregarded. It further stated as a result of my appeal request I was now approved for a different program ( See attachment C ). 

I received another correspondence from XXXX XXXX dated XX/XX/XXXX stating I had met the pre-qualification for the modification, subject to the terms of the letter. Effective XX/XX/XXXX my monthly payments will be {$320.00} for the trial period of XX/XX/XXXX and the XXXX of XXXX and XX/XX/XXXX ( see attachment D ). I am baffled as to what the difference in the programs were except for the change in the trial period dates and that the notification of the recision was mailed after I had made the XX/XX/XXXX payment as stated in the XX/XX/XXXX letter. 

In a phone conversation, XXXX XXXX indicated the loan modification only pertained to the Equity loan and not the 1st mortgage. In a correspondence dated XX/XX/XXXX XXXX XXXX stated that the name of the loan program that I am in is Piggy-Back w/Temporary Rate Reduction. This program only allows for a one time modification. 

What is most disturbing, other than the fact that my monthly loan payment has almost double, I was never informed verbally or in writing that acceptance of the two year temporary modification would negate any future ability for a loan modification. This was confirmed by XXXX XXXX, Wells Fargo Executive Resolution Specialist. I indicated upon notification of the temporary modification, a two year modification would not resolve my problem. I was informed that I could reapply in two years. The reason I believe this loan falls under the banner of predatory lending is people like myself, who were not eligible for federal programs was left with no options, literally held hostage to difficult loans. 

XXXX XXXX, I am a single retired XXXX XXXX woman shy of XXXX XXXX XXXX XXXX I purchased my property XX/XX/XXXX, a few months before the XXXX housing crisis. The appraisal value of my home was {$610000.00}. My original loans totaled XXXX with an interest rate of 6.75 % on the 1st mortgage. I had A XXXX score between 706 -719. Due to the loss of value of my property and the kind of loan program I am currently in, it rendered me ineligible for refinancing my loan and I was ineligible for any modification programs at that time ( See attachments E & F ). I realize that I have to accept the responsibility of signing documents that I did not fully understand. I have paid the price for that. To date I have paid approximately {$350000.00} in mortgage payments and I owe Wells Fargo just as much today as I owed you the day I purchased this property. 

According to Wells Fargo representatives, Wells Fargo service my mortgage for private investor, XXXX XXXX XXXX XXXX. which is the trustee for XXXX XXXXARS, the acronym for Wells Fargo Mortgage Back Securities XXXX ARS. It appears that XXXX XXXX XXXX. Is an advocate/representative for Wells Fargo XXXX 

Therefore, I a requesting, begging that Wells Fargo provide me with the same pre-qualification modification that I received with the Wells Fargo Equity loan. Your immediate attention to this matter will be greatly appreciated. 

Yours truly, Attachments

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