Consumer complaint received 2023-01-20
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (VA)

RE : Request for Loan Modification for Real Estate Property Dear Wells Fargo Bank, We, The XXXX XXXX, are slowly recovering from our financial hardship. 
We have a second Lien Holder ( Deed of Trust ) on the XXXX XXXX  XXXX XXXX mortgage XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX. XXXX XXXX advised us to sell our XXXX XXXX XXXX to purchase the XXXX XXXX XXXX XXXX property. The original owners XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX agreed to pay for the vehicle to complete the sale of the XXXX  XXXX XXXX property. We agreed to repay them {$80000.00} in installments of {$410.00} via a XXXX  XXXX XXXX XXXX Account. The current balance of the Deed of Trust is {$73000.00}. 
We are still paying this bill. 

Our financial hardship scenario histories are below : My husband received a reduction in income ( salary ) after serving in a temporary promotion position from XX/XX/XXXX XX/XX/XXXX. His salary was reduced from {$120000.00} to {$110000.00} in XX/XX/XXXX. After performing in the temporary promotion position for 3 years, he was demoted. He made many attempts to apply for the full-time permanent promotion that he served in, but he was disqualified and replaced by another candidate who was selected to fill the role of XXXX XXXX XXXX XXXX with the State Department XXXX In XX/XX/XXXX, he received a 2.0 % raise, and his current salary is {$110000.00}. 

From XX/XX/XXXX XX/XX/XXXX, we were summoned to court by our rental property tenant over a leaking bay window, HVAC issues, and serious damages and repairs inflicted by the tenant and his pets. We exhausted our savings and retirement accounts appearing in Tenant Assertion Court in XXXX XXXX XXXX, Virginia, paying legal fees to Attorney XXXX XXXX XXXX in the amount of {$20000.00} dollars, and remediating repairs on our rental property XXXX XXXX XXXX, XXXX, Virginia XXXX. From XX/XX/XXXX XX/XX/XXXX, we did not receive any rental income from the tenant XXXX XXXX XXXX XXXX. The tenant vacated the property in XX/XX/XXXX. 

The rental property of XXXX XXXX XXXX, XXXX, Virginia mortgage amount is {$1600.00}. This amount does not include the Home Equity Loan ( {$1500.00} ), HOA fees, insurances ( $ XXXX year ) or taxes ( $ XXXX ). 
The Home Equity Loan, HOA fees, insurances and property taxes are all separate payments. 

Due to our lack of funds, COVID-19, supply chain issues and inflation, it was difficult to secure contractors to repair the rental property. By taking out additional loans, credit cards, and drafting promissory notes, we were able to rectify most repairs from XX/XX/XXXX XX/XX/XXXX. Our rental property has been vacant from XX/XX/XXXX until XX/XX/XXXX ( 1 full year ). The rental property was on the real estate market effective Monday, XXXX XX/XX/XXXX. We asked our real estate agent to conduct a quick sale with only pre-qualified buyers. A quick sale did not occur. 

We, the XXXX XXXX, would like to inform you that our rental property has been placed under contract and was effectively sold and finalized on Friday, XXXX XX/XX/XXXX. 

The IRS notified us in XX/XX/XXXX that we owe back taxes for XXXX XXXX XXXX for both federal and state governments ( approx. {$10000.00} ). We paid the IRS with the proceeds from the sale of the rental property. 

Tuesday, XXXX XX/XX/XXXX, my employment with XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX was terminated. I was employed from XXXX XXXX XXXX XXXX XX/XX/XXXX and my salary was reduced due to COVID-19. I was ineligible to collect unemployment benefits because my termination letter stated that my performance and conduct were unsatisfactory during my probationary period. 

Currently, I am gainfully employed again. I am employed with XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. My employment began on Sunday, XXXX XX/XX/XXXX. My salary income was reduced from {$130000.00} now to {$130000.00}. This was a reduction of approximately {$4000.00} since XX/XX/XXXX. 

We would like to request to have our current Wells Fargo loan modified by incorporating the following : 1. We are requesting a reduction in the interest rate. Or 2. Extending out the maturity date of the VA loan. Or 3. Payment Plan to assist with bringing the VA loan current. 

XXXX XXXX and I would like to request the lump sum of {$90000.00} to be placed on the end of our current loan and to have our new payment amounts recalculated to make up for the 15 months that we were in forbearance. 

We filed an application with the Virginia Mortgage Relief State Program and did not qualify for assistance.

Today, we are submitting five ( 5 ) forms to show a change in our situation : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
XXXX. XXXX XXXX XXXX 's XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX benefits this year. The benefit is pending an appeal with her attorney and is expected to be resolved later in XXXX. 

Our intentions are to keep our home XXXX XXXX XXXX XXXX, XXXX, Virginia XXXX. 
We can not pay Wells Fargo the full lump sum of {$90000.00} from the proceeds from the sale of the rental property because we used the money to pay the contractors who have performed home improvements and renovations to the rental property that sold on Friday, XXXX XX/XX/XXXX ( the debt load from the sale of the rental property to make it attractive ) : 1. Presently, we are still paying down multiple high interest rate credit cards and loans that we incurred while making home improvements renovations on the rental property as an effort to beautify the rental property to sell it faster.

2. We are still paying contractors that we have promissory notes of payment with who performed additional unexpected repairs identified by the House Masters home inspector such as painters, septic, and well water construction repairs. 

We are asking to have the lump sum of {$90000.00} placed on the end of our current loan and/or reduce our interest rate and/or extend out the maturity date of the VA loan and/or place us on a special payment plan to bring our VA loan current. 

Wells Fargo needs to inform its customers up front and directly in writing the following : When a person sells their rental property, some of the proceeds of the money received from the sale of the home is expected to be applied to any forbearance ( delinquent payments ) immediately. We were unaware of the misleading actions Wells Fargo was planning on doing. 

Both of our incomes are anticipating a 4 % annual federal increase in XXXX. 

Lastly, we anticipate an increase in our credit scores by the end of XX/XX/XXXX. We paid approximately XXXX creditors. 

We want to avoid foreclosure and bankruptcy because this could cause us to lose our federal government jobs and our security clearances. We are willing to work out a solution that benefits both our needs and Wells Fargo Bank Home Mortgages needs. 

The current condition of the XXXX XXXX XXXX XXXX property is fair. It requires an estimated amount of {$250000.00} dollars in repair work. Three ( 3 ) geothermal furnaces need to be updated to code, new flooring needs to be installed, new windows and doors need to be installed, roof replacement, a new composite deck needs to be rebuilt, a retaining wall near the pool needs to be reconstructed, privacy and security fencing around the pool needs to be installed, the landscaping needs beautification, the plumbing needs to be updated, and the attic area needs insulation. These are just a few items and not the full list of required repairs. Two months ago, we had a home inspection performed on our primary residence and the home inspection report outlines all the deficiencies ( flaws ) with the primary residence. 

Hopefully, you can work with us and propose a flexible solution to assist with the preservation of our home at XXXX XXXX XXXX XXXX in XXXX, Virginia. 

Respectfully and Kind Regards, XXXX XXXX XXXX XXXX XXXX XXXX XXXX