Consumer complaint received 2024-02-17
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: WELLS FARGO & COMPANY (FL)

We have complained to Wells Fargo for failing to comply with its duties to assist borrowers during a natural disaster declared by the President of the United States or the Governor of Florida. We are also demanding immediate assistance to prevent XXXX XXXX 's intention of defaulting on the properties we have owned for more than 22 years. Our complaint is based on the following circumstances : Between XX/XX/XXXX, and XX/XX/XXXX, we experienced financial hardship due to the COVID-19 pandemic, which affected our tenants and our ability to pay our mortgage statements and fees. We did not receive any forbearance plan during this time. In addition, our location was hit by two hurricanes in XXXX. The first hurricane, Hurricane Ian ( XXXX XXXX  ), occurred on XX/XX/XXXX, causing flooding in two of our properties and significant damage to others, leading to a decrease in our income. The second hurricane, Hurricane Nicole ( XXXX  XXXX ), happened on XX/XX/XXXX, which hindered repairs of the damage caused by Hurricane Ian. 
As a result of our financial difficulties, we sought assistance from Wells Fargo, our mortgage lender, by applying for mortgage assistance, a forbearance plan, or a loan modification. Unfortunately, we did not receive any response from them. In the meantime, Wells Fargo continued to add unjustified fees to our loans, fail to process our payments, send monthly mortgage statements with higher amounts, ignore the payments that were made following the guidelines established for XXXX XXXX  by the United States Bankruptcy Code, request unnecessary information, and in some cases even initiate foreclosure proceedings. Despite our attempts to contact them through email or phone, Wells Fargo did not answer our queries about the situation. 

We have loans with Wells Fargo, but we haven't received any assistance from them. We told them about the condition of our properties due to the hurricanes, but they continued to request lender insurance for the properties. Unfortunately, we were unable to get insurance because the homes wouldn't pass inspections due to the hurricanes, and nobody would insure them due to the extensive number of hurricanes in the state of Florida, as well as the age and condition of the properties. 
Additionally, the monthly mortgage statements show a constant increase in the amounts without any fair reason. Below are the loans we are referring to : XXXX ) XXXX XXXX XXXX : Loan Number : XXXX : - XX/XX/XXXX : Mortgage Statement of {$13000.00}. 
- XX/XX/XXXX : Mortgage Statement of {$11000.00}. 
- XX/XX/XXXX : Mortgage Statement of {$10000.00}. 
- XX/XX/XXXX : Mortgage Statement of {$10000.00}. 
- XX/XX/XXXX : Mortgage Statement of {$9700.00}. 
- XX/XX/XXXX : Mortgage Statement of {$9700.00}. 
- XX/XX/XXXX : Mortgage Statement of {$10000.00}. 
- XX/XX/XXXX : We received a letter from Wells Fargo requesting our new insurance policy. 
- XX/XX/XXXX : We received a letter from the XXXX XXXX XXXX XXXX from Wells Fargo, stating that they were working to address our concerns. 
- XX/XX/XXXX : We received a letter from XXXX XXXX XXXX XXXX, representatives of Wells Fargo Bank requesting for proof of coverage on this property, stating that otherwise, they will proceed with a notice of default. 
- XX/XX/XXXX : Mortgage Statement of {$29000.00} as a minimum amount due to reinstate account. 
- XX/XX/XXXX : We received a letter from Wells Fargo, where they informed us about the escrow amount and also that they were going to continue with the foreclosure. 
- XX/XX/XXXX : Mortgage Statement of {$29000.00} as a minimum amount due to reinstate account. 
- XX/XX/XXXX : We received a letter from the mortgage lender to acknowledge our application for mortgage assistance. 
- XX/XX/XXXX : Mortgage Statement of {$29000.00} as a minimum amount due to reinstate account. 
- XX/XX/XXXX : Mortgage Statement of {$12000.00}. 
- XX/XX/XXXX : We received a letter from Wells Fargo where they stated that they were no longer reviewing this account for assistance options. 
XXXX ) XXXX XXXX XXXX : Loan Number : XXXX : - XX/XX/XXXX : Mortgage Statement of {$4400.00}. 
- XX/XX/XXXX : Mortgage Statement of {$4400.00}. 
- XX/XX/XXXX : We received a letter from the XXXX XXXX XXXX XXXX from Wells Fargo, stating that they were working to address our concerns. 
- XX/XX/XXXX : We received a letter from XXXX XXXX XXXX XXXX, representatives of Wells Fargo Bank requesting for proof of payment for the XXXX taxes for this property, stating that otherwise, they will proceed with a notice of default. 
- XX/XX/XXXX : Mortgage Statement of {$5100.00} - XX/XX/XXXX : Mortgage Statement of {$20000.00} as a minimum amount due to reinstate account. 
- XX/XX/XXXX : We received a letter from Wells Fargo requesting our new insurance policy. 
- XX/XX/XXXX : Mortgage Statement of {$20000.00} as a minimum amount due to reinstate account. 
- XX/XX/XXXX : We received a letter from Wells Fargo where they stated that they were no longer reviewing this account for assistance options. 
XXXX ) XXXX XXXX XXXX : Loan Number : XXXX - XX/XX/XXXX : Mortgage Statement of {$4200.00}. 
- XX/XX/XXXX : Mortgage Statement of {$4400.00}. 
- XX/XX/XXXX : Mortgage Statement of {$4600.00} - XX/XX/XXXX : We received a letter from Wells Fargo requesting our insurance policy. 
- XX/XX/XXXX : Mortgage Statement of {$4800.00}. 
- XX/XX/XXXX : We received a letter from the XXXX XXXX XXXX XXXX from Wells Fargo, stating that they were working to address our concerns. 
- XX/XX/XXXX : We received a letter from XXXX XXXX XXXX XXXX, representatives of Wells Fargo Bank requesting for proof of payment for the XXXX taxes and insurance for this property, stating that otherwise, they will proceed with a notice of default. 
- XX/XX/XXXX : Mortgage Statement of {$3200.00}. 
- XX/XX/XXXX : Mortgage Statement of {$3200.00}. 
- XX/XX/XXXX : Mortgage Statement of {$3000.00}. 
- XX/XX/XXXX : Mortgage Statement of {$2800.00}. 

We have sent several emails to the Mortgage Company requesting Loss Mitigation Assistance, but we have not received any response from them. We have also requested that our taxes and insurance be escrowed, and we have filed insurance claims for all our properties, stating that we have paid for the repairs out of our own pockets, without any assistance. We believe that our payment processes have been negatively impacted by irregularities, undue delays, and unfair decisions made by the Mortgage Company. However, we can prove that we have always fulfilled our commitments to them in each loan, and we are willing to continue doing so, despite the adverse impact of COVID-19 and Hurricane Ian on XXXX small business. 

Even though Wells Fargo is not registered as a licensed mortgage lender in Florida State, they are still obligated to comply with the Loan Originators and Mortgage Brokers XXXX XXXX Title XXXIII of the Florida Statutes ( XXXX ). However, we believe that they have failed to meet their legal obligations as lenders under federal and state laws in the case of natural disasters. According to the Consumer Financial Protection Bureau and the Florida Office of Financial Regulation, these obligations are in place to protect borrowers from financial hardship caused by natural disasters. 

Some of the key legal obligations of lenders during and after a natural disaster are : 1. Mortgage Forbearance : The Coronavirus Aid, Relief, and Economic Security ( CARES ) Act enacted by Congress in XX/XX/XXXX provides mortgage forbearance for federally-backed mortgages for up to 18 months due to COVID-19-related financial hardships. This forbearance applies to natural disasters as well. Lenders must provide borrowers with a forbearance period of at least 90 days for federally-backed mortgages and up to 180 days for non-federally-backed mortgages. During the forbearance period, lenders can not charge late fees, report late payments to credit bureaus, or initiate foreclosure proceedings. 

At this point, we never received at least 90 days of mortgage forbearance, otherwise, we continued receiving charges for late fees and also the increase in our mortgage statements, which made it even more difficult to cover our responsibilities. 

2. Disaster Assistance : Lenders must provide borrowers with information about disaster assistance programs offered by federal, state, and local agencies. This information must be provided in writing and in a language that the borrower understands. Lenders must also provide borrowers with a list of resources that can help them recover from the disaster. 

3. Communication : Lenders must communicate clearly and frequently with borrowers about their options during and after the disaster. This communication must be in a language that the borrower understands and must include information about forbearance, disaster assistance, and any other available resources. 

Regarding points 2 and 3, it is crucial to note that even though we requested mortgage assistance from Wells Fargo and received communications from them, they only informed us that they would review our application. However, in the end, we received a negative response to our application. 

4. Modification of Loan Terms : Lenders may modify loan terms for borrowers affected by the disaster. These modifications may include extending the loan term, reducing the interest rate, or deferring payments. Lenders must provide borrowers with written notice of any loan modifications. 

We were never allowed to modify our loan terms, which resulted in the interest rates and late payment fees increasing each month. We feel that the actions taken by the corporation are unjust and violate our rights.