Consumer complaint received 2024-03-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: WELLS FARGO & COMPANY
State: OK

Complaint narrative:
I have a mortgage with Wells Fargo. My account is current and I have never been late or missed a payment. I have an ongoing insurance claim regarding water damage in my house that occurred on XX/XX/XXXX. To date I have received {$110000.00} from my homeowners insurance to make the necessary repairs. Understandably Wells Fargo is a co-payee on each of the checks from my insurance company and they have a vested interest in securing the value of their collateral. I also have vested interest in securing the value of my home of 10 years. It would seem that our interests are aligned, however Wells Fargo has and continues to make it nearly impossible to complete the repairs to my home. 

Of the {$110000.00} I have received from my insurance company, Wells Fargo currently still holds {$62000.00} and refuses to release the funds so I can complete my repairs. 

Their explanation for not releasing my insurance funds is that they need to ensure the repairs are being completed and will release a percentage of the funds to correlate with the percentage of the repairs that are completed. There was an inspection of my house on XX/XX/XXXX. The inspector reported to me that everything was progressing as it should and they were confident the collateral was being preserved as it should. Wells Fargo interpreted that report to mean we were 25 % complete. 

Work has continued steadily and everything is on pace to be completed by the end of XXXX. However now, despite constant communication with Wells Fargo, and my compliance with their every request for documentation and proof, they refuse to conduct another inspection to determine the progress of the repairs. After repeated calls and requests for an inspection, Wells Fargo finally scheduled one on XX/XX/XXXX, and then cancelled that inspection without explanation on XX/XX/XXXX. I then rescheduled another inspection on XX/XX/XXXX that was canceled on XXXX/XXXX/XXXX again without explanation. 

All this frustration and inaction on Wells Fargo has now led to a point where I have no options left to proceed. To date, I have spent a total of {$88000.00} on the repairs to my home, which includes the {$51000.00} released by Wells Fargo. No I have just received notification that the cabinet order I placed in XXXX has arrived. They were custom built offsite to be assembled in my house. To take possession of the cabinets I have to pay the balance due which is {$36000.00}. This is an amount that was fully covered by my insurance proceeds and which is currently held by Wells Fargo. Until I have the funds from Wells Fargo, I can not complete my kitchen, and apparently until my kitchen is complete Wells Fargo will not release my funds. 

I am just trying to get my house back to where it was before the water leak happened. Despite Wells Fargo 's stated intention of working to preserve the value of their collateral, they are now at the verge of destroying that collateral and the value of my house, and they are doing so while in possession of {$62000.00} of funds that are rightly mine to make the needed repairs on my house.

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