Consumer complaint received 2016-04-09
Company: WELLS FARGO & COMPANY
State: AZ
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
This complaint is against ASC ( Americas Servicing Company, a mortgage company serviced by Wells Fargo ), and Wells Fargo Home Equity. Wells Fargo has used a bait-and-switch tactic on us regarding our recently ballooned monthly mortgage payment which increased after 10 years from {$1500.00}, to the exorbitant amount of {$4800.00}, as of XXXX/XXXX/XXXX. We are unable to afford this amount, and are now close to losing our home that we purchased in XX/XX/XXXX, and uprooting my family. We feel we were bait-and-switched since XX/XX/XXXX, when we have attempted to work with Wells Fargo to refinance or modify our loans, aware of the unaffordable impending balloon payment. Since the crash in XX/XX/XXXX, our home dropped in value to the point where we were unable to refinance, and since our loans are not XXXX XXXX XXXX, we were not able to utilize HARP. So every year we have called Wells Fargo and spoken to their Home Preservation dept, requesting assistance on how to lower the impending balloon payment, as we had every intent to remain in our home and keep our good credit, and Wells Fargo continually advised us to continue making our XXXX mortgage payments ( which for the last 10 years, we have done with zero delinquencies, on XXXX loans ), stating that when our balloon payment begins on XXXX/XXXX/XXXX, they would surely work with us to lower that balloon payment, and keep it at an affordable amount, and ultimately allow us to keep our home. XX/XX/XXXX, I contacted Wells Fargo as it was nearing the impending balloon payment, and again, wanting to keep our good credit, attempted to work with them, as they stated they would. I was advised to begin a HAMP loan modification request, 1 or 2 months prior to XXXX/XXXX/XXXX, so it would be within plenty of time for them to work with us and lower that impending balloon payment. I submitted our loan mod request on XXXX/XXXX/XXXX, as advised, with all requested documentation, and a detailed letter explaining that yes, we could currently afford our {$1500.00} payment, but in a month, we will surely not be able to afford the {$4800.00} balloon payment. That same day, I was advised by our rep that I should not have submitted the loan mod request, and that I should have waited until XXXX/XXXX/XXXX, when the balloon payment actually begins, so that the underwriters could base the loan mod request on the unaffordable balloon payment. So the loan mod request was promptly denied because indeed, we could afford the current payment of {$1500.00}. No consideration taken of my letter outlining the impending hardship. By then, it was XX/XX/XXXX, so I had received the first statement showing the new {$4800.00} payment due XXXX/XXXX/XXXX. I then escalated my concerns to Wells Fargo Customer Care, who advised me to submit an appeal, including the new statement showing the {$4800.00} payment, and that they would then surely lower the payment to one we could afford. 3 valuable weeks later, Wells Fargo denied my request. I believe as a delay tactic, our rep continually called me on our home phone, which I missed every time, as my cell phone was my primary method of contact since the start. I then called Customer Care, and was informed that per the underwriter, they did not even take the new {$4800.00} payment into consideration. They based the appeal 's denial on the original {$1500.00} payment, even though that was no longer our current payment, and the entire basis of my appeal. I was then told to yet again, to resubmit the entire loan mod request, again submitting the current statement showing the {$4800.00} payment, with a detailed spreadsheet of every monthly expense, minimum payment, outstanding balance, and notes to accompany. So here we are, back at square 1, zero progress, no accountability by Wells Fargo, and are now even closer to losing our home and our good credit. I believe Wells Fargo has been negligent, and used delay and bait-and-switch tactics. Thank you.

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