Mortgage -- Struggling to pay mortgage -- Complaint #7845478
Complaint Overview
Complaint ID: 7845478
Company: Wells Fargo & Company
Product: Mortgage
Sub-Product: FHA mortgage
Issue: Struggling to pay mortgage
Sub-Issue: An existing modification, forbearance plan, short sale, or other loss mitigation relief
State: New Jersey
ZIP Code: 07112
Date Received: 2023-11-13T12:00:00-05:00
Date Sent to Company: 2023-11-13T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Servicemember
Consumer Narrative
We began the short-sale process in XX/XX/XXXX. The short-sale was denied on XX/XX/XXXX. The reason for this denial is as follows : To date, this loan is extremely delinquent, ( 70 ) months past due. Extreme delay by the mortgagee in completing the foreclosure process has occurred ; therefore, the property is ineligible for inclusion in the Pre-Foreclosure Sale ( PFS ) program. The mortgagee failed to initiate the foreclosure action in accordance with 24 CFR 203.55 ( b ). Once HUD is made aware of this, HUD will deny the properties eligibility to be sold through a PFS. The mortgagee has been instructed to complete the foreclosure action and to make any necessary repairs ( if needed ) prior to conveyance to HUD. We feel this ruling is unfair for the following reasons : 1 ) The delinquency of noted of ( 70 ) months was created by the death of the borrower in XXXX, followed by the death of the borrowers next of kin in XXXX, in which this time frame included the pandemic. A new family member had to be legally appointed as administrator of Estate and as of XX/XX/XXXX has been successfully named. These are mitigating circumstances which should be taken into consideration. 2 ) HUD also sites that the mortgagee ( Well Fargo ) failed to initiate the foreclosure action in accordance with 24 CFR 203.55 ( b ). Any error or impropriety in the filing of the foreclosure process is not the fault of the borrower and thus, the borrower should not be held responsible for that issue created by the mortgagee ( Wells Fargo ). As a matter fiscal practicality, HUD 's decision to continue through to foreclosure is fiscally impractical. The amount owed on the property is approximately {$210000.00}. The BPO on the property is {$160000.00}. The property is currently vacant, boarded and has been severely vandalized and in it's current condition not worth the current amount of {$210000.00}. Additionally, the property has an outstanding water bill of {$20000.00} which must be paid by any potential purchaser at time of closing as well as well. In HUD 's response, they also state that " The mortgagee has been instructed to complete the foreclosure action and to make any necessary repairs ( if needed ) prior to conveyance to HUD ''. These requested repairs by HUD will cost a significant amount, easily reaching $ XXXX as 3 floors and a basement must be cleared out and measured by the HUD standard " CUBIC FOOT ''. Additionally, the process to complete sheriff sale from today 's date, ( XX/XX/XXXX ), will take at minimum ( 6 ) months, which means at a minimum ( 2 ) more quarters of property taxes will be due along with the forced casualty property insurance policy payment, vacant property registration, which is progressively punitive because this property being vacant for years is a repeat offender. If HUD 's stated reason of the denial is due to the delinquency being ( 70 ) months and/or ( 70 ) missed payments, their decision the extend the situation several more months only serves to make matters and fiscally makes no since, when the matter can be resolved in 30 days from the date of this complaint ( XX/XX/XXXX ). We feel it's for these reasons HUD 's position to force the mortgagee ( Wells Fargo ) not to accept the short sale and move to foreclosure is absolutely the wrong decision.
Frequently Asked Questions
What is Complaint #7845478 about?
Complaint #7845478 was filed against Wells Fargo & Company regarding Mortgage specifically about Struggling to pay mortgage. It was received by the CFPB on 2023-11-13T12:00:00-05:00.
How did Wells Fargo & Company respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Mortgage) and describe your issue in detail.
Can I see other complaints against Wells Fargo & Company?
Yes, visit the Wells Fargo & Company company profile at readthecomplaint.com/company/wells-fargo-company to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.