Consumer complaint received 2019-01-05
Company: Ditech Financial LLC
State: AL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Had storm claim at my home in XX/XX/XXXX. Checks from insurance company came in my name and Ditech 's name ( Ditech is my mortgage company ). From the beginning, I would be given different information on the process to release the funds to fix my house each time I called. My contractor has witnessed all the phone calls with me after the first two calls for this reason. They never gave me anything in writing telling me the process but instead gave me different info each time I called. We are now over 80 % done, but they have only paid out about half of the money. It has drug on so long that things are getting tough. Contractor has fronted a lot of money for the job, and hasn't gotten paid in the way Ditech told us they would. If she didn't have the funds she had to spend, we would both have been in trouble. They sent a third party inspector to the house on XX/XX/XXXX who told me he was reporting that well over 75 % was complete and that Ditech would send 75 % of the money. We called a few days later and they had only sent XXXX in the mail ( which we had been told they would overnight it free of charge since there had been a " misunderstanding '' because they would usually charge XXXX to overnight it and take it out of the claim money? ) The misunderstanding they refer to is basically anything we have been told any time we called them to get the money released. From the beginning Ditech told us they would release so much up front, then when a certain amount of work was completed we were to send in invoices showing what was purchased and done and they would disperse more funds several times and hold only 10 % in the end to be released when we scheduled an inspection to show it was at least 90 % complete. My contractor overnighted invoices, etc., to them over a month ago. We called them 2 weeks after and were told they had everything they needed and a check would be sent when it was processed, probably in the next week. After another week we called and were told a 50 % inspection would need to be done? We called the next day and were told a check would be cut in a couple of days, so we asked for a supervisor, and supervisor said they were mistaken, that they had all the documentation they needed and we needed a 50 % inspection to be done in order to release more funds to show it was at least 50 % complete? Inspector came on XX/XX/XXXX and told us an inspection was to be done at 25, 50, 75, and 90 % to release funds and asked if Ditech told me that? I flipped out. He said not to worry, that he would show we were well beyond 75 % complete, and that would release 75 % of the funds, then when we called for 90 % inspection, it would release the rest. So we called couple of days later and were told XXXX was sent in mail and they were holding the rest until 90 % inspection was done? Is there anything you can do to help us? There has to be a law against a company doing business in this way. Our county was declared in a state of emergency when this happened, but I didn't know to sign up with FEMA because I had insurance. FEMA would have made them release the funds. I had to have a new roof, siding, windows, ceilings, walls, flooring, cabinets, stove, and I do not have countertops, kitchen sink or stove at this point. Please help us.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation