Consumer complaint received 2024-02-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: WELLS FARGO & COMPANY
State: OH

Complaint narrative:
I purchased my home in XX/XX/XXXX for {$100000.00}, with a loan amount of {$98000.00}. Shortly after closing, I encountered financial hardship and proactively sought a mortgage modification from my servicing company, XXXX XXXX XXXX ( XXXX ). Despite my timely approach, I was erroneously informed that I did not qualify due to my mortgage being current. Advised to skip payments to initiate the modification process, I endured significant hardships. 

The process of modification proved tortuously protracted, with XXXX taking over a year to commence active review, during which time my loan was erroneously referred to foreclosure, incurring unjustifiable fees. It took XXXX/Wells Fargo almost three years to finalize the modification, during which I incurred exorbitant fees and accrued capitalized interest totaling {$24000.00}, significantly inflating my principal loan balance from {$98000.00} to {$130000.00}. 

Consequently, my loan balance has exceeded my home 's value since modification, thwarting my ability to refinance or sell my home, perpetuating my financial distress. Despite attempts to capitalize on the housing boom during XXXX, I have been thwarted by the disparity between my outstanding balance and my home 's market value. 

These egregious errors and delays not only exhibit negligence but also border on criminality, necessitating urgent redress. My predicament underscores the urgent need for accountability and corrective measures to rectify the gross mishandling of my mortgage modification. My application for mortgage modification languished far beyond the duration of my initial financial hardship, which lasted a mere three months. Despite my proactive approach to seeking assistance before my mortgage became delinquent or faced foreclosure, the modification process inflicted undue strain, ultimately compelling my husband and me to file for bankruptcy to stave off foreclosure. 

It's crucial to underscore that all foreclosure fees incurred were a direct consequence of XXXX XXXX XXXXXXXX XXXX ( XXXX ) failure to promptly process my application, and the excessive capitalized interest accrued was likewise a result of XXXXXXXX XXXX delays. These errors not only precipitated financial turmoil but also had cascading effects on my credit score, necessitating bankruptcy filing and leading to increased rates on credit cards and auto loans. 

The Emergency Economic Stabilization Act of XXXX, which birthed the Troubled Asset Relief Program ( TARP ) and subsequently the Home Affordable Modification Program ( HAMP ), aimed to provide financial support to banks and incentivize successful homeowner assistance programs during the economic downturn. XXXX XXXX egregious mishandling of my case stands in stark contrast to the intent of such programs, underscoring the urgent need for accountability and redress.

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