Consumer complaint received 2019-10-02
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (NY)

Re : Wells Fargo Bank Loan Number : XXXX Dear Sir or Madam : I am writing you this letter to request the departments intervention in this matter so as to avoid an injustice being inflicted upon us. The following is summary : As previously reported, we lost our business in XXXX after 13 years of successful management. It was our primary source of income. 
At the time, we owned and operated a XXXX  at XXXX XXXX XXXX, XXXX County, New York. We leased the space from XXXX XXXX. Unfortunately, the recession caused XXXX XXXX to seek protection under the bankruptcy code and our lease was thus automatically cancelled. 
Soon thereafter, we relayed that information to Wells Fargo and inquired about the programs we qualified for. Initially, Wells Fargo rebuffed our requests, and insisted on full payment of the outstanding balance of the note. 
Fortunately, our local representative, the Honorable, XXXX XXXX intervened on our behalf, and Wells Fargo approved us in one of  their programs. However, the program ran for a very limited time period. 
Wells Fargo then, offered us a loan modification that was unconscionable. We only had a few years remaining in the mortgage when we defaulted. The total amount outstanding prior to the default was {$130000.00} and the monthly principal and interest payment was {$710.00}. 
However, Wells Fargo offered us a loan modification for the duration of 40 years. Yet, the monthly payments were more than twice the amount when we defaulted. In sum, the loan modification offer was illusory, and they were well aware of it. It was intended solely to frustrate, annoy and harass us. 
Inasmuch, we could not afford to make the payments, we rejected the offer. Similarly, Wells Fargo denied our repeated requests for a more reasonable monthly payment. 
Consequently, they commenced foreclosure proceedings against us and the matter is currently pending in the Supreme Court of the State of New York , County of XXXX under Index Number XXXX XXXX  XXXX XXXX XXXX   XXXX XXXX XXXX, initially represented Wells Fargo Bank XXXX That law firm has since closed. They were recently indicted and plead guilty to Fraud and overbilling XXXX XXXX. 
Upon receipt of the suit papers, we attempted to negotiate a loan modification with Wells Fargo through their attorneys, XXXX, XXXX XXXX XXXX, XXXX, to no avail. The bank used every deceptive tactics not to process the loan modification including repeated requests for the same documents. 
XXXX XXXX XXXX XXXX, XXXX, resumed the prosecution of the foreclosure action on behalf of Wells Fargo. 
Wells Fargo somehow managed to use the demise of XXXX, XXXX XXXX XXXX, XXXX as a delaying tactic. They mislead the court and informed that we neglected to provide XXXX XXXX XXXX the necessary documents for them to evaluate a loan modification application on my behalf. 
Yet, we provided the necessary information to XXXX XXXX XXXX XXXX, XXXX, their new attorney. 
Soon thereafter, we sought help from the Department of Financial Services. Consequently, Wells Fargo reluctantly agreed to negotiate with us. 
We applied for yet another loan modification and inquired about a possible global settlement. We offered to settle the entire outstanding balance for the total sum {$100000.00}. The claim specialist at Wells Fargo confirmed that they would settle the matter for the amount stated. They requested proof of income prior to confirming the settlement, which we provided. 
Notwithstanding the above, the attorneys for Wells Fargo did not stay the matter pending settlement or the approval of the loan modification. They continued to prosecute the foreclosure and scheduled the auction and sale for XX/XX/XXXX. 
Accordingly, we retained counsel and they filed an order to show cause to stay the matter. But for the order to show cause, Wells Fargo would have auctioned our home to the highest bidder. 
There after, my attorneys appeared before the Court at the XXXX County Supreme Court building for oral argument of the order to show cause. At that time, the court directed the attorneys for Wells Fargo to process the loan modification and the settlement offer with the upmost expediency. The matter was then adjourned. 
By letter dated XX/XX/XXXX, Wells Fargo extended a possible loan modification to us. The monthly payment on the proposed offer was {$3100.00}. At that time, we consented to the modification but requested to hold execution in abeyance pending a decision on the global settlement. We were hoping to resolve this matter once and for all with Wells Fargo. Further, they informed me that they would approve the settlement once we provided proof of funds, which we did. 
Similarly, we requested Wells Fargo to provide us the breakdown of the monthly payment on the loan modification. For example, we wanted to know the interest rate on the modification. They simply refused to provide that information. 
In any event, we secured insurance for the house, in anticipation of proceeding with the loan modification should the settlement be rejected. 
However, Wells Fargo deceived our attorney, the court, and us. By letter dated XX/XX/XXXX, Wells Fargo reneged on the global settlement. XXXX XXXX, A Home Preservation Specialist from Wells Fargo informed that they could not approve the settlement because of limitations in our servicing agreement. Mr. XXXX lied. 
A review of the foreclosure documents and the assignment confirmed that the mortgage was assigned to Wells Fargo. Further, they informed the court that they are the current holder of the note. 
In short, they never intended to approve the settlement. It was simply a ruse because they thought us incapable of securing the proposed settlement amount. 
We humbly request that the department penalizes them for such willful fraudulent behavior. 
Conversely, once our attorney became aware that Wells Fargo reneged on the global settlement offer, they advised Wells Fargo to proceed with loan modification. However, the attorneys for Wells Fargo informed our attorney that Wells Fargo would not re-instated the offer for the loan modification. 
According to him, Wells Fargo requires us to submit yet another application for a loan modification despite the fact that the prior offer was less than 45 days old. It is important to note that our financial situation has not changed. 
The goal is to frustrate us for several months, while their attorney proceed with the sell of our home. 
Losing my home will be devastating to me, my wife, my kids XXXX, XXXX, XXXX & my wifes XXXX year old mother who lives with us. Since the default, we have taken extraordinary steps to maintain the property. We contracted over {$120000.00} in solar panels & back up batteries. We replaced the roof for over {$17000.00}, and repaved the destroyed driveway & a host of other upgrades & maintenance. In addition, we operate our new business out of our home & pay our fair share of business & personal taxes. In sum, we respectfully request that the Department of Financial Services intervenes in this action to help us save the family home. We request that the Department compels Wells Fargo to accept the Settlement Offer or approve a loan modification at a reasonable  rate. 
Similarly, inasmuch Wells Fargo has been negotiating with us in bad faith while accruing interest on the loan to eat up our equity, we request a reduction in the interest accrued to date. 
Lastly, we have had to to hire several attorneys to help us defend against the prosecution of the foreclosure action. We respectfully request that the department awards us attorneys fees as against Wells Fargo. 
To date, we have submitted yet another application for a loan modification to Wells Fargo and await an answer from them. 
We have been getting letters from Wells Fargo, stating that they are in the process of addressing this very letter sent XX/XX/XXXX. However, without any explanation, they have scheduled another Auction Foreclosure Sale for XX/XX/XXXX XXXX