Consumer complaint received 2016-10-25
Company: WELLS FARGO & COMPANY
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
Wells Fargo offered me a MY CITY modification. Although the document did not state so, the last two Home Preservationist Specialist who I spoke with both stated ( on a recorded call ) that my delinquent balance would be forgiven under this program and that I would only be responsible for the principal balance of {$160000.00}, 40 yrs, at a 3.625 % interest rate. To be eligible I had to make three consecutive Trial Payments. Upon making my 2nd Trial Payment, I received notification from Wells Fargo that they were transferring my mortgage to XXXX and that XXXX would handle all inquiries and transactions from here on out. I asked my Home Preservation Specialist if she had forwarded my modification agreement since XXXX contacted me to state that I owed more than I agreed to with Wells Fargo. She stated she would. When I received my new modification agreement from XXXX the document stated that the modification agreement would forgive 0 % of my loan and that the delinquent balance would be deferred until the end of the loan which would be due immediately at that time ( balloon payment ). When I questioned this error with XXXX my agent stated this was the paperwork forwarded by Wells Fargo and that XXXX knew nothing about the verbal agreement. When I went back to Wells Fargo to clarify the agreement, my Home Preservationist emailed me this statement which she had never spoken before, " Unfortunately Wells Fargo/the investors do not forgive the delinquent amount, we forgive the Wells Fargo portion of the delinquent amount - bad check fees/late fees/etc. The attorney 's fees, and delinquent principal and interest for missed payments gets placed back into the principal balance. 
The attorney fees are what we have been paying out to law offices/the court since we started foreclosure proceedings, but we do give what we call a forbearance amount. 
Basically this entails that there is a portion of what is placed back into the principal balance that we do not charge interest on for the life of the loan - is that what you were referring? 
I would let your new servicer know that this is a XXXX XXXX approved program and to reach out to them with any confusion. '' There is no confusion on my part! This is duplicitous actions on the part of Wells Fargo. I had lengthy conversations with this specialist to be assured that I understood the agreement. This Home Preservationist at Wells Fargo never shared this ( emailed ) information when enticing me under duress that this was a great modification. She blatantly lied and stated the delinquent balance would be forgiven to get me to agree to this modification. As a matter of fact, the 1st specialist who offered me the forgiveness agreement got verbally hostile and upset when I told her I would not agree to this modification unless Wells fargo sent me an agreement in writing stating that the delinquent balance of {$70000.00} would be forgiven. She yelled across the phone " you owe us money! ''. I got the 2nd specialist after the 1st was n't able to get me to accept the modification. 
I want to keep my property but the value has dropped drastically. I would not agree to this modification because I would be paying 3xs what the property is worth!

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