Consumer complaint received 2016-10-28
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: WELLS FARGO & COMPANY (TX)

In XXXX XXXX XXXX XXXX, the primary wage earner in the household was laid off from her employer. XXXX worked at XXXX businesses until a XXXX position was secured in XXXX XXXX. In XXXX of XXXX the XXXX position ended due to the birth of XXXX first child. XXXX was out of work, actively seeking employment, until XXXX XXXX when she gained full-time employment. During the period that XXXX was out of work the mortgage on the property was paid late for the months of XXXX XXXX, XXXX XXXX, XXXX XXXX, & XXXX XXXX. A total of XXXX payments were remitted in XXXX for a total of {$12000.00}. As of XXXX XXXX, the mortgage was XXXX payments behind. On XXXX XXXX, XXXX XXXX sent an email to Wells Fargo Home Mortgage detailing a planned payment schedule to get totally current with the account by XXXX XXXX. In XXXX XXXX, XXXX contacted Wells Fargo regarding the payment plan as the online site would not allow electronic payment to be made. This initial contact was with XXXX XXXX of the Home Preservation Department who informed XXXX of possible foreclosure actions, regardless of payment plan communication by XXXX, suggested applying for the XXXX program, describing the benefits to APR & waiving of late fees upon completion of the program. An additional mortgage payment of {$1000.00} was made on XXXX/XXXX/XXXX at a Wells Fargo Bank location in person by XXXX XXXX. The agreement for participation in the XXXX program under the trial period specified was signed XXXX/XXXX/XXXX. XXXX instructed that no further payments should be made until the XXXX trial period payments beginning in XXXX XXXX, which were set up in advance for automatic bank draft in XXXX, XXXX, and XXXX XXXX. On XXXX/XXXX/XXXX the dwelling at the property flooded & was not livable at that point in time. Wells Fargo Property Loss was immediately contacted as well as the home owner 's insurance company. Inspection of damage was initially performed on XXXX/XXXX/XXXX by XXXX XXXX XXXX ; the inspection report was completed on XXXX/XXXX/XXXX & a check was issued for the full cash value of the policy, {$77000.00}, payable to Wells Fargo as well as XXXX & XXXX XXXX ( check sent directly to Wells Fargo from XXXX ). On XXXX/XXXX/XXXX the notice of substantial damage declaration was issued by the XXXX office. This declaration enabled the planning of demolition to the home under XXXX coverage ( payment to contractor managed by XXXX XXXX XXXX, paid for by the National Flood Insurance program ). From the period in XXXX when the substantial damage declaration was received until the house demolition on XXXX/XXXX/XXXX, XXXX was primarily engaged in communications with contractors & XXXX XXXX XXXX XXXX to have estimates for demolition compiled & the cost for demolition approved by XXXX XXXX XXXX. On XXXX/XXXX/XXXX, after speaking with a representative from the Wells Fargo Property Loss department, XXXX faxed in a request to have the insurance funds applied to the mortgage balance as the representative instructed. As of the last phone communication with Wells Fargo the insurance funds are still being held in a restricted escrow account & will not be applied to the mortgage principal until Wells Fargo completes their review. As of XXXX/XXXX/XXXX a total of XXXX payments have been made in XXXX for this loan for a total of {$6500.00}, XXXX of which were designated under the XXXX modification program. Although the trial period payments ended in XXXX XXXX the final modification paperwork was never completed by Wells Fargo. Wells Fargo continues to report the mortgage as in default to the credit bureaus. As of the most current mortgage statement dated XXXX/XXXX/XXXX, there are a total of {$3300.00} in an unapplied funds balance in addition to the {$77000.00} in the restricted escrow balance.