Consumer complaint received 2015-08-17
Company: WELLS FARGO & COMPANY
State: NY
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I purchased my house in XX/XX/XXXX and entered into a mortgage contract with a specific mortgage lender. In XX/XX/XXXX I realized I would soon have a problem paying the mortgage due to my upcoming unexpected retirement and divorce. At that time a new bank ( Wells Fargo ) was now servicing my mortgage. 

I called Wells Fargo prior to my retirement to discuss what options I would have to reduce my monthly mortgage payments. I was up to date on all payments at that time. Wells Fargo told me ( via phone with a mortgage counselor ) that there was nothing I could do at that time and that I should call them back once I am unable to make the monthly payments. 

Once I went into owing a couple of months arrears for missed payments, I was able to apply for a mortgage modification. The process of submitting acceptable documentation and review took about 6 months before receiving a definitive answer to the modification. The answer to my modification application was that, unknown to me, my mortgage was of a type that could not be modified. At that point I was about 9 months in arrears and no longer eligible for other types of mortgage relief. 

Despite being told that my mortgage could not be modified, I was allowed to reapply twice for a modification under different programs or new income guidelines. Wells Fargo also offered me a modification, but it was no where near the reduction that would allow me to stay in the house within my now fixed income. 

Had I known that my mortgage could not be modified before going into arrears I could have pursued a number of options that would have satisfied the mortgage and maintained my excellent credit rating. Because of the lack of knowledge of this key piece of information, I have been locked into a " Catch-XXXX '' situation with no good resolution possible for either party. 

My complaints about the mortgage servicing process by Wells Fargo are:1. Although I was notified about the change of mortgage servicer, I was never notified about a change in my ability to modify the mortgage. 
2. Their refusal to discus, prior to a payment problem existing, my ability to modify my mortgage. 
3. Their contradictory response of telling me my mortgage could not be modified, and then offering me a voluntary modification. My refusal of an inadequate modification was also used as evidence of my not accepting help that was offered. 
4. Once the modification process started I was never offered any other relief that might address my situation. I was thus placed in a financial situation, which they would be aware of, where there was no relief available. 
5. Having me apply for a modification that " can not be modified '' is a waste of everyone 's valuable time. Allowing me to apply multiple times is cruel and unethical. 
6. The lack of prior notice of modification status and lack of clear and timely communication contradicts Wells Fargo 's efforts toward " home preservation ''. The consumer was placed, through no fault of his own, in an inevitable financially-debilitating situation with long-term consequences that could have easily been avoided.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation