Consumer complaint received 2017-10-28
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (OR)

I took out a mortgage loan with Wells Fargo back in XX/XX/XXXX. Due to a decrease in my income from the economy slowing back in XX/XX/XXXX I started struggling to pay my mortgage. I borrowed from friends, took 401K withdrawals as long as I could to keep from falling behind. In XX/XX/XXXX I contacted Wells Fargo to see if they would refinance my loan since my interest rate was 5.875 % and I believed I could keep my loan current if I could get a lower interest rate and payment. I was denied for not enough income and too much debt. However, they could have allowed me to refinance and perhaps consolidate some debt which would have lowered my payment and reduced my debt, so that would improve my situation. Since XX/XX/XXXX I have applied for a Loan Modification at least 5 times. I have been declined for any rate and payment reduction, but was initially approved for a " piggyback '' modification in late XX/XX/XXXX. However, since I was not in arrears at the time, and they refused to lower my interest rate or payment it did n't make sense. I was told by an employee that part of the problem was I was n't behind, so that limited by options. Around a year later I started to fall behind and applied again for modification again. I also sought assistance from XXXX and XXXX in XX/XX/XXXX. XXXX approved me for some help with my payments in XX/XX/XXXX, to start early XX/XX/XXXX. Wells Fargo also again, said they would not offer a rate and payment reduction even thought they could see I was falling behind. My only option again being a piggyback with no rate or payment reduction ( and if I took assistance from XXXX, they would n't do the piggyback ). They indicated I was not eligible for assistance under HAMP or HARP programs since my loan was a Mortgage Backed Security and the Investor did n't permit rate reductions ( the investor on the loan is XXXX XXXX who I have a second mortgage with, and have been told they do participate in the HAMP progams ). I was also told I could reapply for modification after the XXXX payments ended ( which they did after 5 months in XX/XX/XXXX. I reapplied in early XX/XX/XXXX and have been denied twice, first for insufficient income. When I appealed and added my husband and daughter 's income on an appeal, then they denied me for " net present value '. When I asked what this was, I was told it was a calculation they were required to use to see if I was eligible for a modification. They could n't or would n't explain it and said it was complicated. They then referred my loan to foreclosure, which they scheduled for XX/XX/XXXX. In XX/XX/XXXX I contacted SaveyourhomeUSA for help and they referred me to the XXXX XXXX XXXX to assist me making sure Wells Fargo was following the law and assist me with a modification since they had been able to help other clients in obtaining modifications with Wells Fargo. They sent some legal paperwork to them, but there was not enough time to get modification paperwork into underwriting before the foreclosure date, I was forced to file for Bankruptcy in XX/XX/XXXX. They assured they should be able to help with with Wells Fargo to help facilitate a modification. I chose not to go through with the initial bankruptcy since I had filed " pro-se '' and the paperwork was overwhelming. However, after resubmitting lots of paperwork to Wells Fargo I was denied again for 'net present value ''. This time an employee from Wells Fargo referred me to a website to explain the calculation, and I found it was used for HAMP loans. However, Wells Fargo has made it clear I was never eligible for a HAMP modification and has repeatedly denied me for one. I do n't understand how they can use the calculation to deny me for a program that I am not eligible for. It seems like they just wo n't work with me no matter what. They also know I have equity in my home, which appears to be the real reason they wo n't work with me. 

In addition the City of XXXX took a portion of my property to widen the road on two sides of my property, and was to pay me {$32000.00} for this. I agreed to have them issue a check directly to Wells Fargo, which was done on XX/XX/XXXX to apply to my loan. However, to date, they have not applied it. The statements show it is being held in a " Restricted Escrow Account ''. When I called and asked about this, I was told they were holding it to use for repairs in the event they took the property in foreclosure. Is that legal?? I also asked if receipt of the money ( which should have lowered by balance ) would constitute a change in circumstances so I could again apply for Modification and they said that it would not, since the monies were not being applied to the loan balance. 
They rescheduled the foreclosure 3 times this year ( XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX ) and finally on XX/XX/XXXX, I found an attorney to help me and filed again for Bankruptcy ( Chapter XXXX ) to stop the sale. I have made payments for XX/XX/XXXX and XX/XX/XXXX, but they have not applied any of my payments to my loan yet either. It appears I now have no choice other than to sell my home since they still wo n't work with me to lower my payment so I can afford the stay. 
Can you help?? I really do NOT want to lose my home, but at this point it appears selling is my only option since I ca n't cure the arrearage any other way and if I do n't cure it, Wells Fargo can take the property. Unfortunately I wo n't be able to buy another home for 10 years now due to the bankruptcy. Please let me know if you can help with this.