Consumer complaint received 2016-10-28
Product: Mortgage — Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure — 
Company: WELLS FARGO & COMPANY (NJ)

I have owned my home for 38 years and am now facing foreclosure due to the unethical and illegal actions of Wachovia and now Wells Fargo Mortgage. I am not even sure how this happened, all I know is that I have been taken advantage of just like the banking customers that their employees opened up fake bank accounts for. I wanted to simply refinance my home XX/XX/XXXX. For some reason the loan agent from Wachovia convinced me that I should enter into XXXX loans, XXXX a simple refinance loan and the second a home equity line of credit. What is confusing to me is that I was put into a first mortgage with an amortization of only 15 years, then put into an adjustable interest only home equity line of credit. I am not sure in what universe that this would make sense, why would I take out a 15 year fixed first loan while also taking out a HELOC? This was a predatory loan and the bank took advantage of me and ignored their fiduciary responsibility. Of course, I am not surprised because Wells Fargo and Wachovia BOTH got sued on multiple occasions for the shady and predatory loans that were peddled by Wachovia ( primarily the negative amortization loans ). My problem is that I have a sale date set on my home for XX/XX/XXXX. 

I paid as agreed on these XXXX loans for 3 years and then ran into hardship when my brother was diagnosed with XXXX and I had to get involved and help and this put me in a tough place financially. I was able to get XXXX of my loans modified at that time. I continued making payments but began to notice that it appeared that the payments were not being applied. I was not sure of the terms of the modification or exactly where the monthly payments were going. I contacted Wells Fargo many times trying to get some clarification and an accounting of the application of funds as well as what fees you were charging on top of the payments. I could never get a straight answer. 

I was still struggling and began missing payments occasionally and continued to try and get Wells Fargo to provide an accounting of payments but made absolutely no progress. I began the modification process with Wells but continued to be stonewalled -- no review and no accounting of payment history. Wells Fargo then added force placed hazard insurance, even though I had my own valid policy. 

I work and make a decent living and my husband works as well and we could afford a reasonable payment and could settle this matter if Wells Fargo would give us the time of day. I have contacted the foreclosure attorney and also filed formal legal documents against Wells Fargo requesting the information and documentation to show the application of payments over the last 5 years. I would like for Wells Fargo to prove to me that they properly applied all of my payments that were made because my principal balance NEVER went down -- it seemed that all of the payments were just going into the air. I realize that the HELOC may have been interest only at the beginning but it could not have been that way the whole time -- that is why I wanted the accounting and application of payment information for both of these loans. I want to save my home, and with my husband working again as well as my self- employment income I have the means to do so.