Consumer complaint received 2016-02-26
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: WELLS FARGO & COMPANY (IL)

On XXXX XXXX, XXXX Wells Fargo approved a {$270000.00} principal only 40-year adjustable rate mortgage ( no escrow or PMI ) for a XXXX year old retired widow-my Mother. 

My mother was unable to pay the mortgage, property taxes and insurance. By the time I learned of her plight, the mortgage had not been paid for 10 months and the XXXX and XXXX property taxes had been sold. 

On XXXX XXXX, XXXX, Wells Fargo redeemed the property taxes ( {$8200.00} ) " to avoid losing... security interest in the property. '' On XXXX XXXX, XXXX, Wells Fargo approved a mortgage modification that reads ( attached ) : The Modification. 
If my representations in Section XXXX continue to be true in all material respects and all preconditions to the modification set forth in Section XXXX have been met, the Loan Documents will automatically become modified on XXXX XXXX, XXXX ( the " Modification Effective Date '' ) and all unpaid late charges that remain unpaid will be waived. 

Furthermore " The Modification '' states ( A. ) The new Maturity Date will be : XXXX XXXX, XXXX. 
( B. ) The modified principal balance of my Note will include all amounts and arrearages that will be past due as of the modification Effective Date, ( including unpaid and deferred interest, fees, escrow advances and other costs, but excluding unpaid late charges, collectively, " Unpaid Amounts '' ) less any amounts paid to the Lender but not previously credited to my Loan, and less principal in the amount ( C. ) * The escrow payments may be adjusted periodically in accordance with applicable law and therefore my total monthly payment may change accordingly. 

In compliance with the modification agreement, XXXX mortgage payments were made. Based on " The Modification '' clause, these mortgage payments were not credited to the loan. 

My mother passed away on XXXX XXXX, XXXX. Before her passing, a Quit Claim Deed was processed assigning interest in the property over to me. I notified Wells Fargo of her passing, and received correspondence from Wells Fargo explaining the option of my assuming the mortgage. However, when I called Wells Fargo, I was told that I would not be able to assume the mortgage until the life of the mortgage was less than 30 years. It was than that I realized my mother had signed a 40-year mortgage. 

In XXXX, 2 years after the Modification was granted, Wells Fargo alerted us that the monthly mortgage payment would increase to cover the expenses that were incurred in redeeming XXXX and XXXX property taxes. We believe this is an unfair practice and a breach of the agreement made between the lender/loan servicer, Wells Fargo, and my Mother because the property tax redemption occurred before the modification was approved and before the Effective Date of the Modification, and based on the language in Wells Fargo 's Modification agreement. 

My initial complaint was sent to President Obama, and the President 's office forwarded the complaint on to the Consumer Protection Agency, who then sent it on to Wells Fargo. Wells Fargo 's response is included. 

We believe the costs should have been included in the modification, and we believe these charges should be reversed, with any and all other remedies that may be available under the Law. 
As of the date of this writing : The property is underwater. 
Because of the added {$8200.00} the mortgage is, once again, unsustainable. 
As of XXXX XXXX, Wells Fargo has increased the monthly mortgage payment, once again, due to increases in property taxes. 
From XXXX/XXXX/XXXX until XXXX, there was no money available to make needed repair. In XXXX, Life insurance proceeds were used to make some repairs and upgrades to the property after her death. 
The property is in need of repairs and upgrades in order to be in compliance with municipal safety codes. 
Please help us. Your assistance in this matter is greatly appreciated.