Consumer complaint received 2023-06-21
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (OH)

I recently filed a complaint with the CFPB against Wells Fargo Home Mortgage because I believe that myself and my ex husband XXXX XXXX, are part of the recent class action in which mortgage loan modification request were wrongfully denied due to a glitch in the system and should be compensated for a wrongfully denied loan modification due to a glitch that had occurred in Wells Fargo 's system. The previous CFPB case number is XXXX. I am not sure why this case was closed as it was not resolved by any means. Wells Fargo recently mailed me a response to my concern that I received on XX/XX/XXXX. XXXX via XXXX  XXXX. The response was to the documents I sent them from the county recorders office indicating that myself and XXXX XXXX did in fact have a mortgage with Wells Fargo that they repeatedly claimed they could not find evidence of until I sent those documents. In Wells Fargo 's response they attempted to address my concern that we were never given a reason for why our last loan modification request was denied however there are some issues that raise concern for me. XXXX. Wells Fargo mentioned previous loan modifications dating back to XXXX that have nothing to do with the latest loan modification in question. They finally identified the latest loan modification in question as being initiated on XX/XX/XXXX and closed on XX/XX/XXXX as they claim that our ability to afford the modified payment was not supported by our financial situation. There are three things wrong with this : 1. I was told by the agent who was working with me in regards to the modification that this modification was different from the previous request and was part of a new modification program that the government had set up to help thousands of homeowners so it was not under the same guidelines as previous modification request. 2. After having received our application, I called to check on it with the agent and he looked it over and stated that he didn't see any reason why it shouldnt be approved. We submitted ample documentation of our ability to afford the payment. 3. When it appeared that we were getting no response of the decision in a timely manner I reached out to the agent and he apologized stating the loan modification request was denied however he could not explain WHY it was denied. You have to understand the undue hardship and frustration that was caused here as our home was approaching deadlines of possibly going to a foreclosure sale. When I explained to him that it didn't make sense why he can tell me our modification is denied but can not explained why he agreed and I do recall him briefly mentioning a possible glitch in the system as he was aware of cases of something like that going on. He offered to have a supervisor research it and call me back with an answer. A supervisor called me back however they still could not explain the denial and did not make confident statements that the modification was denied due to not be able to afford it. The supervisor did not have a reason but suggested that I may have time to try a short sale. We immediately went to a broker at XXXX XXXX who initiated the short sale process and there was a potential buyer who began submitting offers on the home. In the response to my recent complaint Wells Fargo attempted to address the reason the short sale did not go through stating that the approval to participate in a short sale prior to the pre foreclosure sale had expired and they had not received an acceptable contract for the property. There are some things wrong with this explanation : 1. Multiple offers were made and our broker who was submitting the offers to Wells Fargo kept us well in the loop of what was going on and he stated that Wells Fargo kept denying the offers.2, We were informed by our broker that this tends be a stalling tactic of the mortgage company to deny the offers and just let it go to foreclosure. The reason it went past the expiration date to complete a short sale prior to foreclosure is because Wells Fargo kept DENYING the offers until it got to the date of expiration, only to sell the home in a foreclosure sale for far less than what was being offered on the home. While the short sale process is not the main issue here, the issue is that we never received an answer as to why our loan modification was denied, receiving an answer 13 years later is not acceptable and we believe the reason there was no answer at the time is because of the glitch in the system that caused loan modifications to be wrongfully denied. There are legal ramifications to not addressing a loan modification in the correct way according to federal guidelines. There was no explanation of the denial given and possible glitch was mentioned but brushed over. 
The following are processes listed on the CFPB website that the servicer must follow when a modification is denied : 1 ) Appeal process required for loan modification denials. If a servicer receives a complete loss mitigation application 90 days or more before a foreclosure sale or during the period set forth in paragraph ( f ) of this section, a servicer shall permit a borrower to appeal the servicer 's determination to deny a borrower 's loss mitigation application for any trial or permanent loan modification program available to the borrower.

( 2 ) Deadlines. A servicer shall permit a borrower to make an appeal within 14 days after the servicer provides the offer of a loss mitigation option to the borrower pursuant to paragraph ( c ) ( 1 ) ( ii ) of this section.

( 3 ) Independent evaluation. An appeal shall be reviewed by different personnel than those responsible for evaluating the borrower 's complete loss mitigation application.

We were not sent any mail that explained a reason for the denial nor given a reason on the phone thus we did not have adequate information to appeal the denial. We were not extended an opportunity to appeal the denial.

To avoid further legal action in this matter we are asking that we properly be considered as being part of the class action in which we are due restitution for denied mortgages due to a glitch in the system.