Consumer complaint received 2015-04-10
Company: WELLS FARGO & COMPANY
State: AZ
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
To Whom It May ConcernRegarding : Appeal of mortgage modification denialReasons for Denial Given:1. Income too low to service modified payment2. Home value too low to support debtMortgage Modification Denial AppealIncome too low to service modified payment1. Our gross monthly income is {$7300.00} per the documentation you sent. 
2. Ratio for current payment of {$3500.00} is 48.7 % of our gross monthly income. 
3. With our installments of $ 1000 monthly our full ratios were 48.7 % /62.3 % 4. We were previously approved for a modification by Wells Fargo in XX/XX/XXXX by Wells Fargo Home Preservation Specialist XXXX XXXX with a ratio of 39 % for a payment of {$2800.00}. Approved full ratios 39 % /53 % including monthly installment payments. 
a. We now have no monthly installment payments5. If we had the modification that was previously approved for made permanent, our ratios would be 39 % /39 % since we no longer have any monthly installment payments6. Why would you approve 39 % /53 % before and not 39 % /39 % now, especially since we have not missed any of the prior modified payments? 
7. Check our payment history since the first modificationa. Zero missed payments of {$2800.00} since modificationb. {$31000.00} paid to Wells Fargo Mortgage since XXXX, XXXX. All payments show cashed by Wells Fargo Mortgage but they do not show up as applied anywhere. 
8. If you are tacking on {$37000.00} in unpaid payments onto the mortgage balance, you are not accounting for all the payments ( {$31000.00} ) we have made since last XXXX and we should not have that money added to the new loan balance since we have not missed any payments! 
a. If you are calculating a new payment based on a balance that does not include our payments since last XXXX you are incorrect. 
b. Your statements show a past due account status of 261 days delinquent and {$37000.00} in arrears ( See Attachment XXXX ) but you are not accounting for the payments we have made since the modification. 
c. Since XXXX XXXX, XXXX we have paid Wells Fargo Mortgage {$31000.00} ( See Attachment B ) where is it? We see on your latest statement dated XXXX/XXXX/XXXX that there is {$5700.00} in " Unapplied Funds Balance '' but that still leaves {$26000.00} unaccounted for. This discrepancy also affected the amount of interest Wells Fargo says we paid in XXXX. The difference looks to be about {$6000.00}. 
Home value too low to support debt1. Your previous appraisal from XXXX XXXX, XXXX showed a {$580000.00} property value ( See Attachment XXXX ) 2. Your new appraiser showed a value of $ 550,000a. He did not inspect the inside of the house or the backyardb. His comps show houses that are much older and have a low value per square footc. His comps do not show a house that sold in XXXX, XXXX houses down the block from ours- ( See attached copy of MLS # XXXX ) i. Sold for $ 615,000ii. XXXX square feet less than oursiii. Our home is on a cul-de-sac, theirs is not. 
iv. Our home has an attic, theirs does not. 
v. Our home has XXXX bathrooms, theirs has XXXX bathroomsvi. Our home has XXXX fireplaces, theirs has XXXX fireplacesvii. Our home has space for an RV, theirs does not. 
viii. Our home has carpet and ceramic tile, theirs is all concrete. 
ix. How can our house be valued {$65000.00} less than this other house? 
x. How can our house appraise at {$550000.00} when property values are going up and your own appraiser came in at {$580000.00} less than a year ago? 
Conclusion In XXXX of XXXX the borrower became permanently medically XXXX. Documentation is available for review if requested. 
Using your own documentation we showed that our income ratios are better now than when you approved us for a modification last XXXX. 
Since the modification last XXXX we have made every payment on time and have bank statements to prove it and would continue to make a new modified payment. 
The final modification documents for the previous modification were never received by us to sign.

Company response to consumer: Closed with explanation