Consumer complaint received 2021-06-10
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (NY)

I recently called my mortgage company Wells Fargo Home Mortgage at the end of my forebearance which was XX/XX/XXXX. I mentioned to them that I had visited NYS website and they had listed options for borrows that were coming out of forebearance according to Section 9-XN which is part of the Cares Act to see if I qualified for any of the options which are : Section 9-x requires New York State regulated institutions to offer forbearance on privately serviced loans relating to residential mortgages on properties located in New York to any individual who resides in New York and who demonstrates financial hardship as a result of the COVID-19 pandemic, subject to the safety and soundness requirements of the regulated institution. Section 9-x does not apply to federally backed mortgages. The Coronavirus Aid, Relief, and Economic Security Act of 2020, among other things, covers federally backed mortgages and provides borrowers of such loans with the right to request forbearance up to 12 months from their mortgage servicers. Many New York State regulated mortgage servicers also service federally backed mortgages and are subject to compliance with the federal requirements and guidance applicable to such loans. And should offer the following options : A : Section 9-x ( 3 ) allows a borrower to select one of three repayment options for a COVID-19 related forbearance. Below are the specific options detailed in Section 9-x ( 3 ) ( a-d ) : o Extend the term of the loan for the number of months the loan was in forbearance ; o Repay the arrears accumulated during the forbearance period on a monthly basis ; o Negotiate a loan modification or any other options that addresses the borrowers changed circumstances o Only if the borrower and the lender can not reasonably agree on a loan modification, the regulated institution must offer to defer the amount of the forbearance into a non-interest bearing balloon loan due at the maturity of the loan or at any time when the loan is satisfied through a refinance or sale. 

Wellsfargo informed me that they had no knowledge of this particular help for homeowners and stated they will try to see if I could apply for a modification but is not sure if it would be possible for me. Also during the pandemic they went up on my mortgage from XXXX to XXXX which caused more of a struggle for me. I informed them that if the modification should not work out for me I would like them to offer me the options to defer the amount of the forbearance into a non-interest bearing balloon loan due at the maturity of the loan or at any time when the loan is satisfied through a refinance or sale and they said they can not do that for me either, even though I told them of the passing of my husband who did not have any life insurance so it was a burden for me as well to help with funeral expenses. 

During the pandemic I was able to pay XXXX towards my arreas of XXXX but they stated it did not go to my current balance that was listed on my statement but it was applied to previous months that I though I had aready paid for. I am writing you for help and intervention so that I am able to either work out a payment arrangement with them ( which is also not an option because I am too far behind per Wells Fargo ) so I am able to pay my mortgage as agreeded. I have no where else to go and I don't want to end of on these city streets homeless. I did tell them that I can make two payments for hte month of XXXX now that I am back working regularly and more financially stable. I also received a notice for Wells Fargo stating that my monthly payment will decrease down to XXXX starting the month of XXXX. Please help me understand my options so I don't face foreclosure. I submitted the following complaint to NYS but they suggested I contact you instead.