Consumer complaint received 2016-02-06
Company: WELLS FARGO & COMPANY
State: MD
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I am filing this complaint because I was denied a loan modification for my rental property in XX/XX/XXXX. The property was my primary residence from XX/XX/XXXX until XX/XX/XXXX when I remarried. Although my ex-husband and I originally purchased the house for {$120000.00} in XX/XX/XXXX, I refinanced the house in XX/XX/XXXX at the time of my divorce to buy my ex-husband out of the house, in the amount of {$210000.00} at a rate of 6.5 %. My monthly mortgage payment increased from under {$1000.00} to between {$1700.00} and {$1800.00} ( depending on the most recent escrow analysis ). In XX/XX/XXXX I contacted Wells Fargo in order to apply for a loan modification due to financial hardship. ( After my daughter was born in XX/XX/XXXX, my job position was eliminated during my maternity leave. My husband and I made the decision that I would stay home, care for our daughter and help my husband with his business. My husband, although he derives some income from XXXX, is chronically ill and receives social security XXXX income. ) My income includes rental income from the property as well as child support payments. However, despite proving financial hardship, as well as never having missed a payment, I was denied the loan mod because it is a rental property. Although I was only told this verbally, a follow-up letter from W.F. revealed that I was not able to prove sufficient income for the loan modification ( despite never having missed a payment ) with no mention of it being a rental property. The rental property law changed in XX/XX/XXXX which Wells Fargo seems to be unaware of. A year later in XX/XX/XXXX, a local W.F. representative contacted me about the possibility of doing a loan mod or a HARP refinance. I explained that I had already been denied a loan modification, but he affirmed that he would help me refinance through the HARP program. Again, I submitted all documentation and waited, and again I was denied for the same reason. This representative was no longer reachable by phone or email. 
I am a mother of XXXX, ( XXXX XXXX, XXXX XXXX in XXXX school and a XXXX-year-old ) and am a full-time accelerated XXXX. I will be graduating in XX/XX/XXXX as an XXXX. and have made a decision to do this in order to provide a better life for my family as my husband 's health declines. I also help him run his home office. 
The property is currently occupied by a single mother of XXXX who is on XXXX. Although she is a good tenant, her son recently got into some trouble and caused a break-in to the property and an ensuing police raid. There was considerable damage done to the property which I had to pay for because my insurance company only paid a small amount for XXXX item, and the police would not pay for their damage in the raid. The tenant does not have the funds to pay, although she would like to. Additionally, the child support enforcement office prematurely stopped my child support payments in XX/XX/XXXX which has resulted in me not receiving any payments since XX/XX/XXXX. ( We are working to reestablish those payments but it will be a process. ) None of this would be an issue if my mortgage had been reduced by several hundred dollars per month in XX/XX/XXXX. However, I am now nearly 2 months behind in my mortgage payment and have received a letter of acceleration from Wells Fargo. 
I feel that it is ridiculous that I am still paying 6.5 % on a mortgage that I 've had for 10 years where customers with regular jobs ( and no hardships ) are able to reduce their payments to 3 %. Is the point of a loan mod to help people like me? Wells Fargo is preying on people like me who do n't have much of a voice, waiting for the loan to go into default so that they can claim the property. They have questioned why I want to keep the property, to which I answer, it is my house. I have worked hard to keep it all these years and I hope to pass it to my children or my parents when they are in need

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