Consumer complaint received 2019-07-07
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (GA)

I have been the victim of multiple misrepresentations by the agents at Wells Fargo relating to my home mortgage. I now find myself in foreclosure which is totally avoidable and believe that Wells is purposely obstructing the modification process. I am constantly given conflicting information as to what my debt amount is, what my payment is, what I owe and what my status is. I need to get some answers. This was a stated income pick a payment purchase loan originated through World Savings that I never truly understood. When I first spoke with the agent at World Savings, we told them that this home was going to be classified as an investment property, but by the time we were ready to close we had decided to make the property our home and asked World to change this on the paperwork. They told us no problem, but at closing it was not fixed. The World Savings agent told us to sign anyway and we could call in the following week and get this changed.  When we tried to call the following week, they said they did not know what we were talking about and that this was done. 

When the recession hit, I was working as a realtor and owned multiple investment properties. I began struggling financially and had lost all my properties through liquidation or foreclosure. There was no real estate business to speak of at that time and I ended up losing everything. I missed some payments in XXXX, but then found work and began paying again. In XXXX the loan went from Wachovia to Wells Fargo and I as so far underwater financially that I was forced to file Chapter XXXX  bankruptcy. After a few months I was still struggling, and my bankruptcy attorney suggested that I change this to a Chapter XXXX. He advised me to NOT reaffirm the debt. Wells kept harassing me and said that I owed them {$560000.00} and that if I did not pay, they were going to foreclose. I went to court and the bankruptcy judge said I did not have to pay. 

I was then contacted by the staff at Wells Fargo and was told that there were so many foreclosures in my area that they would prefer NOT to foreclose and if I started making my regular mortgage payment again, I could stay in the property. I began making payments and was essentially in a new contract with Wells when I received a 1099C saying that they had reduced my debt over $ XXXX and that I now had to pay taxes on this. I had been told by the bankruptcy court judge that I owed nothing -- -then Wells entered into a new contract with me by accepting my original mortgage payments. I applied for and then received a loan modification with a reduced payment and a principal balance reduction of $ XXXX. Again, at the end of XXXX I received ANOTHER 1099 C from Wells and now I had a new problem, because the IRS came after me for back taxes on the reduced or forgiven debt. 

I made my payments as agreed on the modification over the next couple of years but then fell behind in XXXX but eventually used some retirement funds to get caught up. A couple years later I was in the same situation due to IRS problems but was able to pull money from what was left in my 401K to get caught up. However, the overwhelming debt and uncertainty surrounding my situation with Wells and the tax burden dragged me down. 

Instead of working with me Wells Fargo has continued to try and foreclose on me. When I try to get answers about the debt forgiveness and what my true and actual obligation is on this loan. I get half-truths and misrepresentations. How were my payments applied? If I did not reaffirm my home, how can I owe Wells any money? Isnt my home free and clear? Is Wells able to write a clean title for this property if they foreclose on me? If I did not reaffirm my debt and then Wells began accepting payments from me again arent they breaking the contract?? These are the questions I need answered.