Consumer complaint received 2025-04-12 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: IL

Complaint narrative:
Complaint Summary : I am submitting this complaint with the assistance of an advocate. 

I am filing this complaint regarding a wrongful deferred balance placed on my prior mortgage account by Wells Fargo Home Mortgage, a division of Wells Fargo Bank , N.A . The balance includes excessive interest that accrued from the time of my default in XXXX until the loan was transferred to XXXX XXXX XXXX XXXX XXXX  The servicer failed to pursue timely foreclosure or provide adequate loss mitigation options during this time, which I believe violates RESPA, consumer protection laws, and constitutes unjust enrichment. 

I originally signed the mortgage on XX/XX/XXXX, with Wells Fargo Financial XXXX XXXX XXXX. They filed for foreclosure on XX/XX/XXXX. As part of the foreclosure case, Wells Fargo submitted a motion for summary judgment supported by an affidavit attesting to the alleged outstanding balance. I contested that motion, arguing that the balance was incorrect and that the affidavit was defective because the affiant did not have firsthand knowledge of the facts and failed to properly swear to the truth under penalty of perjury. Instead of responding to my opposition or providing a corrected affidavit, Wells FargoFinancial XXXX XXXX XXXXXXXX withdrew the motion for summary judgment on XX/XX/XXXX. However, the foreclosure case remained active and unresolved. 

While the foreclosure was still pending, the servicing of my mortgage was transferred to Wells Fargo Home Mortgage on XX/XX/XXXXXXXX XXXX XXXX XXXX, it was transferred again to XXXX XXXX XXXX Despite the pending foreclosure action, Wells Fargo Home Mortgage continued to apply interest charges from the original default date and calculated a deferred balance of {$230000.00}. 

This amount includes the following : Deferred interest of {$38000.00} accrued from the foreclosure period from XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX, under Wells Fargo Financial XXXX XXXX XXXX 

Deferred interest of {$56000.00} calculated from XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX, by Wells Fargo Home Mortgage. 

An unexplained additional charge of approximately {$90000.00} labeled as " uncollected interest. '' The combined total of these deferred interest amounts is {$180000.00}. I dispute the legitimacy of these charges, particularly the {$90000.00} labeled as uncollected interest, which was never properly explained or documented. I believe this reflects an unlawful application of default interest, calculated as if the loan remained in default throughout, with no regard to the active foreclosure status. 

It is my understanding that once a foreclosure action is filed, interest can only accrue under strict contractual and legal conditions. Any additional or deferred interest applied during the pendency of foreclosure should reflect judicial oversight and must not result in duplicative or unjustified enrichment. Default interest should not have continued accruing once the foreclosure process was initiated and the case remained pending. 

Furthermore, Wells Fargo Home Mortgage appeared to disregard the ongoing foreclosure litigation when calculating the deferred balance. This contributed to the inflated and unjustified interest accruals. These practices are misleading, predatory, and in violation of fair servicing obligations. 

I repeatedly contacted Wells Fargo to request clarification, relief, and a reduction of the deferred balance. Each time, I was denied. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX, XXXX XXXX XXXX  XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I am only now able to understand my rights and am seeking justice. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I was unable to file complaints or pursue legal remedies until recently. I believe this qualifies for tolling of any applicable statutes of limitations under both federal and Illinois law.

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