Consumer complaint received 2016-08-03
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: WELLS FARGO & COMPANY (MN)

I purchased a new townhome in XX/XX/XXXX. Due to the Great Recession, impact on my business was significant. I am a sole proprietor and my business my income in XX/XX/XXXX was approximately {$15000.00}. therefore, I was unable to make payments and pay living expenses like health insurance. I made a request of my lender to enter into a short sale agreement and all paper work was submitted around XX/XX/XXXX which was approved by the lender. The property is in good condition and maintained. Also, due to a divorce and prolonged health problems prior to the recession I have no retirement accounts or savings. No other investments or property. I am XXXX years old. My townhome is a good property and very saleable in this market. My realtor has had over 130 showings many of which would like to submit an offer but are worried about how long they have to wait for bank approval. However we have received XXXX written offers to purchase. XXXX offers backed out due to financing. XXXX other offers cancelled because they could no longer wait on the bank to approve the sale. 

the problem is the lender continues to ask that the same information be resubmitted. its as though they receive it and do n't look at it. I am on robo call asking for the same information sometimes every week. When confronted on the phone and by fax recently the case manager acknowledged we had submitted all required information. Only a few days later, we received a letter that we again do n't qualify for a short sale. Again we are apparently reinstated because we submitted a XXXX offer last week. A week ago we received a request from the lender that we need a letter from the IRS that they will waive the tax liens on the property. they could have asked for this letter last XXXX. time is growing very short as I have extended the Sheriff 's sale by an additional 5 months which occurs XXXX XXXX, XXXX. The most recent development on XXXX XXXX is we received notice from the lender that they wanted to up the price to {$200000.00}. the lender had approved a sale price of {$180000.00} for which we received an offer last week. Now we are afraid we will lose a XXXX offer. 

The bottom line seems that we are getting the run around so that by asking for the same information over and over and the lender does n't look at it because they do n't want to do the short sale. I do n't know if there is an advantage to the lender to let the property go to foreclosure and they are intentionally dragging this out. Or ... is it just gross incompetence. I have paid private mortgage insurance so FHA will pay the lender. the mortgage balance is {$210000.00} so no one is going to lose a lot of money. Although I am making a little more money this year, there is no way I could ever bring the mortgage current so it makes no sense to keep pulling the short sale approval. Obviously I would rather have the short sale rather than foreclosure which has a more detrimental impact on my credit. 

Through my real estate agent I was assigned to a law firm that specializes in short sales. Both the real estate brokerage company ( one of the largest in the state ) and the law firm state they have never seen a case like this before. the law firm already filed a complaint through the CFPB, but I want to add to it.