Consumer complaint received 2018-07-08
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (MA)

In XX/XX/XXXX I bought my first home, a townhouse in XXXX, MA. The mortgage was an adjustable rate, interest only, no income verification with server refinance penalties. Originally the loan was though XXXX XXXX, but latter taken over by Wells Fargo. Knowing what I know now, I should have never been put in such a mortgage. My credit score was XXXX and I had a good paying job with the ability to put down 20 %. It took a year before the reality of this mortgage came to light. To make matters worse the automobile industry went through great financial trouble and my position was eliminated.

The next decade was a series of negotiations with Wells Fargo and trying to take advantage of various government programs with minimal success. At one point it appeared I qualified for HARP only to have Wells Fargo come back a few years later and tell is was a mistake. As a result, I had to pay back any monies taken off the mortgage and incurred a number of fees. Even the one refinance the bank did grant ended with a payment higher than previous one.

Then sometime in XX/XX/XXXX a foreclosure notice arrived at my home. Not knowing what to do, I sought counsel from XXXX XXXX in XXXX, MA. Mr. XXXX recommended Chapter XXXX Bankruptcy. The total monthly payments were extremely high at about {$4500.00} per a month. The payback payments were more than the original mortgage payment. It was simply too much to handle and Mr. XXXX advised to withdraw from the bankruptcy in XX/XX/XXXX before it was confirmed. He instructed doing so would guarantee reimbursement of any payments made. As of XX/XX/XXXX, I have not received any monies even though I have asked Mr. XXXX about this matter on several occasions.

Shortly after Mr. XXXX withdrew the Chapter XXXX   Bankruptcy, I contacted Wells Fargo about a short sale and was told I qualified for one. At no time did Wells Fargo disclose there were specific guidelines and procedures for a short sale. I requested information and any accompanying paper work to file for a short sale, but never received any such documents from Wells Fargo.

Within two months after dismissing out of Chapter XXXX  Bankruptcy, a second foreclosure noticed arrived. At this point, it was clear a short sale was my best option. I went back to XXXX XXXX for advice. His advice was to file a second Chapter XXXX Bankruptcy. He instructed me I had to file bankruptcy now to save the home and that I could NOT do a short sale when the home was under foreclosure. He told me I could do the short sale later after the bankruptcy and that I could NOT do a short sale while in bankruptcy.

Mr. XXXX  dismissed me out of the Chapter XXXX Bankruptcy before the court date on XX/XX/XXXX. I am not sure of the exact date, because he did not contact me. I found out though my husband. From what I understand Mr. XXXX spoke to my husband over the phone and told him he was going to dismiss the Chapter XXXX Bankruptcy. If I had to guess, it was sometime shortly after our meeting on XX/XX/XXXX, where Mr. XXXX  was paid.

On Friday XX/XX/XXXX a third foreclosure notice arrived and on Monday XX/XX/XXXX I spoke to Well Fargo and was told I had to request a short sale 37 days prior to the foreclosure day. The foreclosure is scheduled for XX/XX/XXXX, making my request about 5 days short.

This information was devastating and surprising. Both Wells Fargo and Mr. XXXX neglected to inform me of this critical 37 day rule along with other critical information. After consulting a second counsel, it can be argued with confidence Mr. XXXX did misinform and misguided me.

Currently, my home will be foreclosed on XX/XX/XXXX and I missed the short sale request by 5 days. After paying XXXX XXXX {$7700.00} and not receiving my payments back from the courts for {$5000.00}, my situation is frustrating and has caused great distress in my life. If I had received better counsel there is no doubt my situation would be different.