Consumer complaint received 2016-01-05
Product: Mortgage — Conventional fixed mortgage
Issue: Application, originator, mortgage broker — 
Company: WELLS FARGO & COMPANY (IL)

About 3 to 4 years ago, I contacted my mortgage company ( Wells Fargo ) because I was having financial difficulties and wanted to apply for assistance through the HARP program. Since I was behind a couple of months with my mortgage, I did n't qualify for the HARP program. Wells Fargo offered a modification package that I did qualify to apply. This modification ended up raising my interest rate and extending my loan from 30 years to 42 years. Putting at least {$170000.00} in the first principal and about {$80000.00} in a second principal. I originally purchased my home for {$340000.00} and paid {$60000.00} down with a conventional mortgage. I was told that if I continued to pay my mortgage as agreed, I may be able to qualify to refinance the loan at at later date. Since my mortgage was modified, I have paid my mortgage on time. XX/XX/XXXX or XX/XX/XXXX, I contacted Wells Fargo again to inquire about the HARP program. I was n't behind in my mortgage, but my taxes have doubled and homeowners insurance has gone up significantly in the last 10 years. Needless to say, my salary has not increased at the same rate. I wanted to be proactive and do what I could to lower my loan in the event there is another increase in my property taxes or insurance. Wells Fargo told me that I would have to contact them after XX/XX/XXXX because they were making some adjustments to their HARP program to be compliant with the new requirements. I waited and contacted them again last month. Wells Fargo started the refinance process and sent me several versions of the same documents ( XXXX with the XXXX principal only and another with both the XXXX and XXXX principals together ). They offered to refinance my loan for 4.75 % and my monthly mortgage would be about {$1800.00} ( including the taxes and insurance ). I told them that I had a loan modification through Wells Fargo a few years ago. They said that they would send my information to the underwriter and get back to me. Several days ago, I received a call from XXXX XXXX ( Wells Fargo ) indicating that my loan was being denied because Wells Fargo could n't write off the second principal ( about {$70000.00} ). She indicated that I may be able to apply for a conventional refinance, but my monthly payments would definitely go up. I asked if this would be provided in writing as I was not happy and wanted to file an official complaint. She assured me I would receive this information in writing. Last week I received a denial letter from Wells Fargo indicating the reason for the denial was " insufficient assets to close loan ''. Today, I call Wells Fargo to find out why the loan was denied. The customer service rep could n't tell me and said she needed to do some research to determine the reason for the denial. I feel Wells Fargo has participated in predatory lending practices. I just want to stay in my home long enough to sell it in the next 6 months. I inquired about closing my escrow account so that I could pay the taxes and insurance myself and I was told I could not because of the modification. I feel Wells Fargo has painted me in a corner and is doing nothing to help me continue to successfully pay my mortgage. Because my escrow is in a shortfall, they will add an additional {$300.00} a month to my monthly mortgage of {$1900.00}. If they 're going to increase my mortgage ( and I understand the reason for this increase is because of the increase in my taxes and homeowners insurance ) then they can certainly positively consider refinances my mortgage to more reasonable terms or allowing me close my escrow account ( and Wells Fargo refund to me the amount remaining in my escrow ) so that I can pay my own taxes and homeowners insurance. Someone from Wells Fargo was supposed to get back to me today about my denial inquiry. I also requested to make a formal complaint. I did n't receive a response today.