Consumer complaint received 2018-08-12 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY
State: GA

Complaint narrative:
On XX/XX/XXXX, under the Obama Administration I was approved and received a loan modification. I completed the trial period payments and continued to pay my payments according to the agreement. 

On XX/XX/XXXX, I was approved and received a flex modification. I completed the trial period and continued to make payments until I started to experience a hardship. My hardship began In XX/XX/XXXX, however, increased in back mortgage payments. This default occurred when a renter who was renting a room in my home began to default on her rent. I had began to rent rooms in my home to increase my income and ensure I could make my mortgage payments. When she defaulted in caused an impact in my household expenses that created a spiral effect. 
I stayed in contact with Wells Fargo continuously informing them of the hardship I had experienced. 

In XX/XX/XXXX, I applied for another loan modification. I was assigned a Home Preservation Specialist, XXXX XXXX. I stayed in constant conversation with her and submitted all my paperwork to her. OnXX/XX/XXXX, I was informed all my paperwork was received and I would receive a decision. 

On XX/XX/XXXX, I received a decision and I was offered a short sale for my property and denied a third loan modification. ( see attached letter ) After seeking advice from a HUD counselor, and several other people including two attorneys, a mortgage counselor, and my credit union financial adviser, I was informed if I did a short sale, Wells Fargo would benefit by receiving the funds from the sale and mortgage payoff. However, since I have a second on the home, I would stand to loose because I would still have to pay the second mortgage, which to me appears to be a deliberate attempt to intentionally create a gain on their part and a liability on my part. 

Next, According to the XXXX XXXX Rules which govern the modifications, I am eligible for a third modification. I have quoted and included information from XXXX XXXX that qualifies me for a third loan modification. I meet the following criteria. 


XXXX : XXXX XXXX Flex Modification ( XX/XX/XXXX ) In order to be eligible for a XXXX XXXX XXXX XXXX , all of the criteria in the following table must be met. 
Eligibility Criteria for a XXXX XXXX  Flex Modification The mortgage loan must be a conventional first lien mortgage loan. 
Note : The property securing the mortgage loan may be vacant or condemned. 

The mortgage loan must be at least 60 days delinquent or the servicer has determined that the borrower 's monthly payment is in imminent default in accordance with Evaluating a Borrower for Imminent Default for Conventional Mortgage Loan Modification Eligibility in XXXX, Determining if the Borrowers Mortgage Payment is in Imminent Default. 
The mortgage loan must have been originated at least 12 months prior to the evaluation date for the mortgage loan modification. 
The mortgage loan must not be subject to a recourse or indemnification arrangement under which XXXX XXXX purchased or securitized the mortgage loan or that was imposed by XXXX XXXX after the mortgage loan was purchased or securitized ; an approved liquidation workout option ; an active and performing forbearance plan or repayment plan, unless otherwise directed by XXXX XXXX ; a current offer for another mortgage loan modification or other workout option ; or an active and performing modification Trial Period Plan. 
The mortgage loan must not have been modified three or more times previously, regardless of the mortgage loan modification program or dates of prior mortgage loan modifications. 

The borrower must not have failed a XXXX XXXX Flex Modification Trial Period Plan within 12 months of being evaluated for eligibility for another XXXX XXXX Flex Modification. 
Note : Converting from a Trial Period Plan to a forbearance plan is not considered a failed Trial Period Plan. 

The mortgage loan must not have received a XXXX XXXX Flex Modification and become 60 days or more delinquent within the first 12 months of the effective date of the mortgage loan modification without being reinstated. 

And I was informed that Wells Fargo adds 25 % to the gross in order to qualify a customer for a loan modification. In their explanation in the attached letter, they only quoted the income I make, without the 25 % addition which would disqualify me. It appears they did not use their customary way of qualifying me for another loan modification.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation