Consumer complaint received 2015-04-19
Company: WELLS FARGO & COMPANY
State: MD
Product: Mortgage
Sub-product: FHA mortgage
Issue: Application, originator, mortgage broker

Complaint:
Subject : Wells Fargo Home Mortgage 's Bad Practice caused us significant damageWells Fargo Practice XXXX XXXX : WF inquired our credit for Pr-approval credit by Wells FargoI explained my financial hardships of bankruptcy and foreclosure over the credit report the WF agent was questioning. WF pr-approved the loan amount of $ XXXX based on my credit score of XXXX and hardships. We started looking for a house under WF guidance and worked with a WF-suggested real estate agent. 

Now we have learned that what WF told us was wrong. Under the XXXX program, we should take credit counseling first at least thirty days before we apply for FHA loan under this program, we will get FHA approved loan amount, then we look for house for this amount plus our down-payment. 

XXXX pr-approved {$490000.00} loan by Wells Fargo. Attachment XXXX. 

XXXX : Had a contract on xxxx with WF Underwriter 's Letter of Credit Approval. 

XXXX XXXX : inquiry for XXXX house loan application. We got credit approval from underwriter for this application. This confirmed our belief that we were on the right track to purchasing our home. 

XXXX signed " Explanation of addresses '' which listed the house that we owned and was foreclosed by Wells Fargo. WF knew this at the beginning and told us it was fine. Here is the item listed in this letter ( Attachment XXXX ) : xxxx old house address ... 
Owned and foreclosed released in XXXX ( XXXX XXXX - XXXX XXXX ) Sold in foreclosure XXXX XXXX XXXX Home inspection : {$420.00}. 

XXXX WF sent us Rate Lock Agreement and Good Faith Estimate of the loan xxxxx to confirm we were qualified to get loan for this house. Attachment XXXX. 

XXXX Corrected Disclosure Statement in email to agent asking for correction on my previously owned and foreclosed house. See attachment XXXX for details. The excerpts : page XXXX of XXXX : foreclose ( did n't change ). pointed out our previous house was foreclosed. 

XXXX : Home appraisal : {$480.00}. 

XXXX : email from loan agent saying Appraisal of the house was above the contract price. Put deposit {$3300.00} for fixing the floors. Attachment XXXX. 

XXXX : Signed disclosure statements sent by WF processor without our agent checking if the errors I identified on XXXX/XXXX/XXXX were corrected. Now I see it was not corrected, and the credit report showed my previous house was foreclosed. I also provided all communication with WF involving Loan Modification over 1 year before I was forced to foreclose my house. A WF agent told me WF accepted it was not my fault. I also gave the whole package of my Foreclosure court document set, including the Auditor ' Report, to WF loan processor. I also sent the Loan Modification document, which shows I tried for 1 year to keep the house. 

XXXX : We were still told our loan application looked good. So, we did a home inspection follow-up and had the floor company measure floor on this day. We also agreed to do Termite Inspection per to WF underwriter 's request. 

XXXX : WF mailed us the denial letter with the following reasons : I had Foreclosed my previous residence and had an insufficient income. See attachment XXXX. My income was sufficient according to Credit approval letters from WF. The XXXX program I thought WF was applying for me was for people who had foreclosed their home and who were recovering. This is why I believe WF bank did not do what they told me they were going to do. The financial damage to us is totaled at {$4200.00} and we lost the opportunity to get our dream home. The emotional damage is huge.

Company response to consumer: Closed with monetary relief