Consumer complaint received 2015-12-09
Product: Mortgage — FHA mortgage
Issue: Credit decision / Underwriting — 
Company: WELLS FARGO & COMPANY (MD)

On XXXX XXXX, XXXX, Wells Fargo auctioned and bought my primary residence at a foreclosure auction in a rush to cut off my right to reinstate the loan by paying off the delinquent amount estimated at {$63000.00} and bringing the loan to current. 
I had asked for, and submitted proof of fund for reinstatement of my loan prior to Wells Fargo auctioning and buying my house. 
On XXXX XXXX, XXXX, I submitted an application for a loan modification. On XXXX XXXX, XXXX, an employee of Wells Fargo called and left a message on my cell phone advising me that Wells Fargo would not consider my loan modification application because of its proximity to the scheduled sale date of XXXX XXXX, XXXX. On the same day, XXXX XXXX, XXXX, I spoke to another employee of Wells Fargo and informed her that I would pay the delinquent amount to bring the loan to current and asked for a postponement of the sale date. The employee asked me to send proof of fund to support my request to postpone the sale. She stated that the proof could be in the form of fund in a retirement account and that I needed to send the document from a retirement plan account which would bear my name, address and fund balance in the last thirty days and that I needed to send the document by XXXX XXXX. East Central time zone. 
I faxed my retirement accounts balance from XXXX on time. The combined balance in my accounts was sufficient to pay the delinquent amount on my mortgage. I followed up minutes after the fax to verify that Wells Fargo had received and entered my proof of fund into my record which Wells Fargo confirmed. Again, I asked for a postponement of the sale date because of the nature of my fund which would need a few days to convert it to cash. Wells Fargo advised me that it did not have a decision on my request to postpone the sale. I called several times the following day, XXXX XXXX, XXXX, but I was told that Wells Fargo did not have a decision on my request. But nobody advised me to make the payment to bring my loan to current as originally scheduled or that my request was untimely or invalid. 
The next day, XXXX XXXX, XXXX, I called Wells Fargo and asked about the status of my request for a postponement of the sale of my house to give me sufficient time to convert funds in my retirement accounts into cash. An employee of Wells Fargo advised me that there was no decision on my request yet. I authorized my wife to follow up with Wells Fargo. She did moments later and was told that the house sold at auction. According to Wells Fargo, our conversations were recorded. 
I also have retirement accounts at XXXX XXXX. The balance of the accounts as of close of business on XXXX XXXX, XXXX was {$210000.00}. With approximately XXXX in retirement accounts, I am able and willing to withdraw money from my retirement accounts to reinstate my loan, but I need the cooperation of Wells Fargo to do so. 
My attempt to modify my loan goes back to XXXX and included some modifications which failed through because of high monthly payments in the past and job losses during that period. 
In XX/XX/XXXX XXXX XXXX XXXX, a Home Preservation Specialist, advised me to fire my lawyer so that she could advocate on my behalf to obtain a favorable modification outcome. I followed her counsel. I now know that Wells Fargo engaged in a serious conflict of interest which seriously impaired my ability to retain a lawyer and to fully know and exercise my rights in the foreclosure process. On XXXX XXXX, XXXX, XXXX XXXX XXXX, a Home Preservation Specialist, wrote me. I did not receive her letter until after the sale had occurred. The letter which she wrote implies that a lawyer would have been able to advise me about my rights during the sale stage of the foreclosure process. I have included the letter that she wrote.