Consumer complaint received 2018-07-12
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: WELLS FARGO & COMPANY (OH)

The facts of the this case are as follows : We sold our primary home located at XXXX XXXX XXXX XXXX, XXXX, Ohio XXXX on XX/XX/XXXX. Wells Fargo was the servicer of the loan XXXX. Wells Fargo also participated in the mediation and loan modification process that was awarded in XX/XX/XXXX. Wells Fargo did not include the Partial Claim in the payoff statement. The partial claim to HUD in the amount of {$20000.00} was paid during the closing of our sale. 
According to the letter of Resolution dated XX/XX/XXXX, In the Account status section, the account was due for the XX/XX/XXXX through XX/XX/XXXX payments. Which is 15 payments. HAMP Type 33 rules state that the loan must be 12 months or less delinquent. 
According to the payment history, partial payments were made for the following dates : XX/XX/XXXX ( {$390.00} ), XX/XX/XXXX ( {$400.00} ), XX/XX/XXXX ( {$390.00} ), and XX/XX/XXXX ( {$390.00} ). The prior payment to that was XX/XX/XXXX. The next payments shown are {$700.00} on XX/XX/XXXX but listed Date Due XX/XX/XXXX on the payment history, {$700.00} on XX/XX/XXXX listed Date Due XX/XX/XXXX on the payment history and {$700.00} on XX/XX/XXXX listed Date Due XX/XX/XXXX on the payment history. 
Wells Fargo also states that the loan was referred to foreclosure XX/XX/XXXX* and /but that the modification was approved XX/XX/XXXX**. I.E. We were refered to forclosure in XX/XX/XXXX and approved for a loan modification in XX/XX/XXXX. Question? Once we asked for a loan modification / hardship, why did the foreclosure process continue until we believe was XX/XX/XXXX when our house was slated for sheriff sale but was abruptly halted when we opened a case with the CFPB in XX/XX/XXXX? Was this foreclosure a non-Judicial foreclosure? Per Attachment 3 of Mortgagee letter XXXX, non-Judicial forclosures can not be charged attorney fee 's. In addition, Ohio is a judicial foreclosure state. We never went to court for a foreclosure. However with the HUD partial claim funds we had to pay the charges there of. On XX/XX/XXXX, we received an award letter from XXXX XXXX congratulating us of successfully completeing the modification process. This was after we met with the mediator at XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, OH XXXX upon several occasions during XXXX. 
Wells Fargo said dual-tracking didn't occur with our account. Wells Fargo states that dual tracking protection ensures a customer 's account won't be sent to foreclosure while there is a pending application for payment assistance or while a customer is complying with an already approved payment assistant program. Question, so if I was refered for foreclosure in XX/XX/XXXX and I was approved a trial hardship / modification beginining XX/XX/XXXX, Why did the foreclosure process continue until I filed a complaint with the Consumer Financial Protection Bureau to stop the sheriff sale of our home and then proceeded to get a modification on XX/XX/XXXX? Why were we also charged all the other fees associated with a forclosure if we were in a modification program? Why was we refered to forclosure in XX/XX/XXXX shortly after making hardship payments seek a loan modification? 

The HUD funds were received by Wells Fargo on XX/XX/XXXX*** in the amount of {$20000.00}. Three days later on XX/XX/XXXX three payments for {$990.00} and one payment of {$660.00} was used from the HUD funds of my partial claim for corporate advances. On XX/XX/XXXX a credit was applied to our account in the amount of $ XXXX**** for a total of {$2600.00} in Corporate Advances. What were these used for? 

Were we charged fees for a non-judicial foreclosure that never took place? 

According to the resolution letter dated XX/XX/XXXX, the breakdown of the HUD funds are as follows : Delinquent Intrerest : {$8200.00} Delinquent Escrow : {$4800.00} Escrow shortage : {$300.00} Recoverable fees {$3600.00} Delinquent Principal {$2800.00} The Interest, Escrow, Escrow shortage and Principal totals {$16000.00}. If you add the Recoverable fees, the total is {$19000.00}. The amount of the HUD partial claim is {$20000.00}. 

{$20000.00} - {$19000.00} =????? 
The difference ... .... {$1000.00}! 

*****Note : On XX/XX/XXXX a credit was applied to our account in the amount of {$1000.00}. 
On XX/XX/XXXX the amount of {$20000.00} was repaid to HUD. 

Also : The stated delinquent P + I + E + Escrow shortage = {$16000.00} {$16000.00} / 15 months = {$1000.00} My payments at the time of hardship was {$780.00}. ( P + I + E, and PMI ) {$780.00} x 15 = {$11000.00} {$1000.00} - {$780.00} = {$290.00} {$290.00} x 15 = {$4400.00} If we were behind 15 payments ( XX/XX/XXXX through XX/XX/XXXX ) in the amount of {$780.00} ( XX/XX/XXXX ) per month / current payment for a total of {$11000.00}, why is it stated that the Delinquent Intrerest : {$8200.00} + Delinquent Escrow : {$4800.00} + Escrow shortage : {$300.00} which totals {$16000.00}. Why is there a {$4400.00} discrepancy? Why were there {$2600.00} in Corporate advances? ( see Table 1. ) What were these were used?

Table 1.

Amount Date Description Notes : {$15.00} XX/XX/XXXX Property Preservation / Maintenance {$15.00} XX/XX/XXXX Property Preservation / Maintenance *Refered for foreclosure XX/XX/XXXX {$15.00} XX/XX/XXXX Property Preservation / Maintenance {$570.00} XX/XX/XXXX Attorney Advance Disbursement {$400.00} XX/XX/XXXX Attorney Costs {$390.00} XX/XX/XXXX Attorney Costs {$580.00} XX/XX/XXXX Attorney Costs {$230.00} XX/XX/XXXX Attorney Advance Disbursement {$140.00} XX/XX/XXXX Attorney Costs {$15.00} XX/XX/XXXX Property Preservation / Maintenance {$500.00} XX/XX/XXXX Attorney Costs {$15.00} XX/XX/XXXX Property Preservation / Maintenance {$15.00} XX/XX/XXXX Property Preservation / Maintenance {$15.00} XX/XX/XXXX Property Preservation / Maintenance {$15.00} XX/XX/XXXX Property Preservation / Maintenance {$350.00} XX/XX/XXXX Attorney Advance Disbursement **Modification was approved XX/XX/XXXX {$310.00} XX/XX/XXXX Attorney Costs {$420.00} XX/XX/XXXX Attorney Costs {$310.00} XX/XX/XXXX Corporate Advance Adjustment {$12.00} XX/XX/XXXX Corporate Advance Adjustment {$12.00} XX/XX/XXXX Corporate Advance Adjustment {$12.00} XX/XX/XXXX Corporate Advance Adjustment {$25.00} XX/XX/XXXX Corporate Advance Adjustment {$130.00} XX/XX/XXXX Corporate Advance Adjustment ***HUD funds were received {$4500.00} Total {$990.00} XX/XX/XXXX Corporate Advance Adjustment ****Corporate Advance Adjustment {$990.00} XX/XX/XXXX Corporate Advance Adjustment ****Corporate Advance Adjustment {$990.00} XX/XX/XXXX Corporate Advance Adjustment ****Corporate Advance Adjustment {$660.00} XX/XX/XXXX Corporate Advance Adjustment ****Corporate Advance Adjustment {$3600.00} Total {$3600.00} Total - {$1000.00} XX/XX/XXXX Corporate Advance Adjustment ( Credit ) *****Credit {$2600.00} Difference At what point does the Lenders responsibility for a Partial Claim end? 
Answer : The Lenders responsibility for a Partial Claim ends when the following two events occur : ( a. ) HUD receives the executed Subordinate Mortgage and ( b. ) When any requests for payoff of the first lien occur, the Lender is obligated to notify HUD to obtain full payoff amount of the Partial Claim and supply that information to the Borrower. ( XXXX XXXX  XXXX ) Can a Partial Claim be used if the Borrower is 14 months delinquent? 
Answer : Per Mortgagee Letter XXXX, under Definition and Existing Guidance, a Lender will advance funds on behalf of a Borrower in an amount necessary to reinstate a delinquent loan ( not to exceed the equivalent of 12 months worth of principal, interest, taxes, and insurance ( PITI ) ). Therefore, the Borrower would have to have sufficient funds to pay towards the arrearage, so that it is no more than 12 months delinquent. ( XXXX XXXX XXXXXXXX ) We have an ongoing, open case with HUD. Ticket numberXXXX