Consumer complaint received 2017-09-01
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (NY)

I have been frustrated with the way my mortgage lender Wells Fargo has handled the servicing of my mortgage loan for several years. It started when I was steered and pressured into an adjustable rate mortgage loan by XXXX XXXX when I refinanced this house. I was told I did not qualify for anything other than this ARM loan that had an interest rate of 10.26 % and could only go UP from there and go as high as 16.26 %. I have since learned that XXXX specialized in predatory loans and that the loans they wrote were filled with misrepresentations and downright fraud. When I bought this house I was running a successful dance studio so I was able to keep up with the payment at first. Then in XX/XX/XXXX my home was involved in a major electrical fire and there was significant damage. I filed an insurance claim and then hired a contractor to do the work, XXXX XXXX and his firm XXXX XXXX. He hired electricians and plumbers to do the work on my house and while they were still working on finishing the repairs a letter was sent to XXXX XXXX XXXX ( servicer at the time ) to state that work had been completed and that insurance checks could be disbursed and that they could be made into the name of XXXX Construction/ XXXX XXXX XXXX This letter was signed by me, but I did not write this letter nor did I sign it. Soon after that XXXX was mailing check after check to XXXX XXXX and XXXX XXXX would forge my endorsement on the check and unbeknownst to me cash them. Eventually the contractor and workers disappeared and the work had not been finished. When I contacted XXXX they said that I had told them they could release the funds. I inquired as to why they did not send out an inspector from XXXX or the insurance company to verify the work was done and they would not give me a straight answer. When I pressed them on the issue of how and why they would handle an insurance claim this way they told me it had always been their company policy to release insurance checks into the name of the contractor and the borrower. I dispute this assertion and demand that Wells Fargo provide proof in writing of this policy, as well as proof of the inspection that was conducted back in XX/XX/XXXX when these insurance checks were being disbursed. XXXX paid out $ XXXX of my insurance money to these thugs, and I found out later that the electrician and plumber were indicted on charges of racketeering. 
I tried to get this matter straightened out and even went to the XXXX XXXX XXXX Attorney XXXX XXXX, but was never reimbursed. As a result of the stress of this situation as well as the recession my XXXX  XXXX sank slowly into the abyss and I fell behind on the mortgage. I tried to apply for a loan modification but was told that my income was not sufficient to qualify. I then contacted the Treasury Fraud department at Wells Fargo to initiate an investigation into the forged checks but was told by Wells Fargo that I had filed my claim too late so they were closing it. Since all of this has gone on, I have rebuilt my life, working full time in XXXX XXXX and making a decent living. I also XXXX on the weekends and do side jobs as a XXXX XXXX to supplement my income. My daughter and son in law live in the house with me and contribute and with this income we make more than enough money to qualify for a restructured or modified loan. The problem now is that Wells Fargo refuses to open a new inquiry, claiming that my financial situation is the same. This is false, they have not conducted a review in some time and have no idea what the current situation is. Wells Fargo has dragged me through the mud from day 1, first with the predatory loan, then by disbursing insurance checks to a contractor who had not finished the work, then by refusing to allow me to be considered for a modification or work out based on my current and correct income.