Consumer complaint received 2017-07-24
Company: WELLS FARGO & COMPANY
State: VA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Wells Fargo was the servicing provider for our mortgage loan for property XXXX XXXX XXXX XXXX, XXXX, Maryalnd XXXX ( Loan # XXXX ) when the loan was sold to them from the lender we obtain the mortgage/home loan from. They claimed to have approved a modification for us several years ago. But failed to file the paperwork with the XXXX XXXX court. After 4 months receiving the approval from them claiming to be under a modification they sent us a letter stating we were not under a modification and will be foreclosed on unless the loan to update. When we called to confirm the modification after receiving the conflicting notifications a few representatives stated we did n't have a modification and when we would call again other representatives would state we did. When we received the notification from Wells Fargo that our loan is in default and we needed to call them to receive a modification soon because they would foreclosed on our house. We went through the modification process again and they sent us a denial stating we had a modification. When we discuss the particulars of the modification with another department they claimed we did not have a modification and needed to apply. Several months later after trying to get this straighten out we hired an attorney to assist with the modification. We then received several letters from them asking us to sign documentation they should have filed several years ago regarding the modification with XXXX XXXX XXXX. The documents stated that we could not sue them or take any legal actions against them. The forms would back date the modification loan to correct the loan which would allow us an opportunity to apply for a new modification. We called them regarding the documents and they stated we needed to sign the documents first and then we could reply for the modification to correct the loan and they would not consider a modification until the documents were signed and filed with the court. We signed the documents to be considered for a modification/correct the modification per our discussion with them. They made us wait 4 to 5 weeks until this process was completed. Once they verified everything was signed and filed with the court they sent us a letter stating they would not approve us a modification and would proceed with the foreclosure. They foreclosed on the house on XX/XX/XXXX and then purchased the property at the auction for {$100000.00} less than our mortgage loan balance. They sold the property through an on-line bid to someone on XX/XX/XXXX and extended the bid date to XX/XX/XXXX when they were able to get us to move out on XX/XX/XXXX because they had a female representative that kept coming by the house while we were at work that asked my children under the age of XXXX years old questions about living at the home and placed several notices on the door that we will be evicted and to call them ASAP. We contacted them and they offered us the cash for keys to leave on XX/XX/XXXX. When we spoke with Wells Fargo several times about getting a modification and to stop the foreclosure they stated it was a better business decision for them to foreclosure on the property.

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