Consumer complaint received 2017-01-25
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
Wells Fargo Bank. 
Stop the sale date of XX/XX/XXXX, until this issue can be resolved. 
1. XX/XX/XXXX loan with XXXX. Sold to Wachovia. Sold to Wells Fargo. 
Loan of {$320000.00}. Meant to pay off existing loan of {$170000.00}. 
The explanation to pay off the loan on property has never been resolved thus XXXX loans still remain on said property. from XX/XX/XXXX to XX/XX/XXXX. 
Wells Fargo set us up to fail. 
2. Wells Fargo failed to complete the refinance of our home correctly by not paying off the then existing Wells Fargo XXXX, leaving both deeds of trust against the property. 
3. Consequently, that transaction was null and void as agreed by the title insurance company. Not understanding the consequences or circumstance my wife and I continued to pay on both loans for many years. 
4. This caused great financial hardship as well as a divorce. 
5. We believed that the title company paid Wells Fargo a settlement to remove their spurious failed XXXX note and it 's deed of trust. 
6. This caused great harm to us because not only was the house " upside down '' from the funding of the loan, it has prevented us from refinancing, selling the home for a profit or a short sale with out damage to our credit and personal financial devastation. This would make the responsibly for loans payoff worth much more than the property is worth. 
7. When Wells Fargo obtained the {$320000.00} promissory note they still permitted their XXXX promissory notes of more than {$500000.00} to be taken together and remain on record at the XXXX Recorders office. 
8. the demands of of Wells Fargo appear to be from different divisions and departments both contrary to as settlement. 
9. To compound the problem, Wells Fargo, knowing the value of my home, continued to accept the " upside down '' notes. 
10. It was never my intention to create a " second note ''. Wells Fargo sidestepped this issue of the refinance to take-out the initial loan upon a refinance. 
11. We personally, nor our property, could have ever qualified for a house which XXXX loans remained on the house. This was a Drastic Error. 
12. Appraisal. The house is a XXXX bedroom/ XXXX bath home. It would not appraise at a value that would have allowed this loan to go through with both loans in place. 
13. I demand to see the appraisal which allowed this loan to take place XX/XX/XXXX. The appraisal must have been a false appraisal which needs to be challenged. I feel this amounted to a " bait and switch '' showing an appraisal that did not match the existing house. 
14. Still later, showing no understanding of the issues and without our permission, knowledge, consent, authority or court action, Wells Fargo Illegally Subordinated their spurious XXXX and larger loan, moving it into first position. This was acknowledged in writing by Wells admitting their mistake : ( Quote from them was ) " Because the loan was intended to pay off the existing mortgage loan ending in ... XXXX, a subordination agreement was not obtained by the servicer of your existing loan at the time of origination in order for this new loan to obtain first lien position on subject property. As such the existing loan referenced in your correspondence, ending in ... XXXX, became first-position lien. And your new loan ending in ... XXXX having been originated at a later date was recorded in XXXX position. '' 15. To resolve the issue, I am requesting Wells Fargo to drop the larger loan. We need time to resolve this error admitted by Wells Fargo. 
16. We must resolve this issue with Wells Fargo, whom took on the loan from XXXX then Wachovia. 
17. I have reached out to an attorney. In the event that this matter can not be resolved we may have to go to litigation. 
Stop the sale date of XX/XX/XXXX

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