Consumer complaint received 2015-09-03
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: WELLS FARGO & COMPANY (NY)

Wells Fargo 's requirements for us to fulfill to release funds in escrow changed over time as they were described to us & created more hurdles for us to overcome, making it nearly impossible to access our funds. We purchased the apartment next door so that we could combine the XXXX units & build a bedroom for our baby. Previously, her bedroom was the living room. The Wells Fargo mortgage banker, XXXX XXXX informed us about holding funds in escrow until the wall separating the XXXX units was removed & stove removed with the gas line in XXXX of the XXXX kitchens capped. We were provided with no other requirements. We closed XX/XX/XXXX due to Wells Fargo administrative & mortgage banker issues. We waited until XX/XX/XXXX for the tenant in the new unit to move out. We started our gut renovation project shortly thereafter. We signed XXXX pages of closing documents two days before XX/XX/XXXX & included were clauses allowing Wells Fargo to indefinitely withhold these funds from us, despite what was repeated to us on how simple the requirements were. Who at a real estate closing will read every single page they are signing? In XX/XX/XXXX, XXXX XXXX, a Wells Fargo employee, assigned to monitor the status of the renovation informed us an invoice is needed, plus the wall removal & gas line cap. Per XXXX 's notes, it was not disclosed that an invoice paid in full was required. In XX/XX/XXXX, XXXX informed us for the first time that the invoice from the contractor & paid in full evidence was now a requirement. We explained we needed to wait for the contractor to close permits, plus inspection to be conducted by the architect, & a building board member or superintendent before paying the balance in full. We explained we needed the funds in escrow to pay the final balance. We do not feel comfortable paying the full balance to the contractor before all inspections are complete for fear there are issues that need to be addressed & we no longer have any incentive for the contractor to fix any issues. We now need the funds in escrow to pay the full balance because we have no funds. The contract states the construction would be completed within XXXX weeks. As of XXXX XXXX, 2015 we are now in week 28.5 of the project. The contractor extorted us for more money & threatened to both put a lien on our property & report us to DOB if we did not pay. We 've been out of a kitchen for over XXXX months & counting, due to the renovation. We 've been forced to purchase all of our meals. Regardless of why we need the escrow funds released, we fulfilled all of the original requirements Wells Fargo provided. When we requested a list of requirements in XX/XX/XXXX, we were not provided any official documentation. We were introduced to a new requirement to be fulfilled. We spoke with XXXX XXXX & asked her to help us navigate this outstanding issue. She informed us what will be required is evidence that a significant portion of the costs covered, plus the invoice. This would indicate most of the work was completed & paid for. We provided a copy of the contract, displaying the full scope of work & cost. We forwarded copies of all bank checks cashed by the contractor. We currently owe 5 % of the contract cost. This is insufficient for Wells Fargo to release our funds from escrow. We feel Wells Fargo is creating more requirements at their will, making it difficult for us to access our funds & not being transparent. As you can imagine, when a construction project runs over by XXXX weeks, with missing materials that need to be re-purchased, & a contractor who is purposely slowing the pace of work down, the last thing we need is the bank to renege on its original word of the conditions by which our funds would be withheld from us.