Consumer complaint received 2016-07-20
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure — 
Company: WELLS FARGO & COMPANY (CA)

I was forced into a pick a pay loan. My original loan was with an adjustable rate when my credit rating showed that I qualified for a fixed rate. I reapplied for a fixed rate and they gave me another adjustable rate loan. My loan was transferred to Wachovia in XXXX who agreed that my credit rating was high enough for a fixed rate loan. I reapplied and submitted extra funds twice to get my due date changed. Each time the funds were kept but not used to move the date due of the payments. In XXXX a Modification request was approved through a community based program. This was an interest loan only with a balloon payment in a few years. I was told that after on time payments I would be given a refinance to a lower interest rate with principal and interest included. I set up monthly phone payments for my end of the month pay date but a customer service rep sent the request on the next business day, 14 days before the funds were deposited and available. This caused my account to become overdrawn. Wells Fargo refused to cancel the payment at my request. A second payment arrangement was also sent in the very next day resulting in bouncing against my account and causing again scheduled payments to bounce. I was forced to close the account in order to reject the payments and open a new account. I began to pay the mortgage in person. They used the bounced payments as a reason to not refinance my loan. My statement then showed my payments XXXX month behind in late XXXX. My bank records did not show a missed payment. I sent a complaint. In my complaints, I asked for an investigation and was told that the statement was correct and I was XXXX payment behind. I demanded a review of my account and a copy of their transactional analysis. I discovered a payment sent in was not applied but cashed.. I notified them of the cashed and not applied payment. They refused to check their records. Instead, I was asked to prove it and produce a cancelled check. I sent the cancelled check cashed by Wells Fargo. This payment was finally applied correctly in early XXXX. This was about a year before I got credit for the payment and used against me in refinancing the loan. I have been consistently informed that I do n't qualify for any loan other than interest only, nor a lower interest rate. And told over and over I do n't qualify for a modification. Banks are supposed to be regulated to ensure they adhere to banking laws in our country, where is my justice? I recently hired a lawyer and went to mediation that favored them. After meditation they admitted that I am in an interest only loan starting in XXXX ending in XXXX. Statements now show unapplied funds sent to Wells Fargo from the Trustee. I 'm making payments according to my bankruptcy plan, the monthly payment and the trustee payment on a past due balance. I 'm paying more now than before. I received notification of a change in the monthly mortgage due to deficits in the escrow account to pay the taxes and insurance but unapplied funds are there and additional late charges. I was told that the XXXX payment was unapplied due to being {$1.00} short. I immediately authorized the {$1.00} payment. I was told that branches often make mistakes in providing information about payments and that Wells Fargo had filed papers, a motion asking the Bankruptcy trustee to release the property from bankruptcy to begin foreclosure proceedings for the short payment of {$1.00}. This has been the most stressful harassing business transaction that I have entered in my lifetime. I am battling to get a better loan like most people spend working a part-time job for the last XXXX 14 years, without pay or benefits. At this point in my life, I must start planning for retirement. With foreclosure threats, bankruptcy, and interest only loans I do n't see how.