Consumer complaint received 2023-06-21
Company: SELECT PORTFOLIO SERVICING, INC.
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Our mortgage servicing company, SPS XXXX XXXX XXXX ( SPS ), refuses to release insurance settlement funds desperately needed to finish the restoration of our home caused by a furnace fire. Our furnace caught fire on XX/XX/XXXX, we immediately informed SPS, and our insurer, XXXX XXXX XXXX, immediately began helping us with the restoration process by supplying the funds we needed to begin the restoration process. Our home immediately became uninhabitable with oily, toxic soot and we took up shelter in a nearby hotel. 

We received a letter from SPS on XX/XX/XXXX stating that we qualified for an immediate check release should we receive an insurance payment requiring their endorsement as well as ours. A copy of their document is attached. 

We received a XXXX} check on XX/XX/XXXX for immediate housing and food as XXXX XXXX began covering our hotel expenses. Of the XXXX remediation companies XXXX XXXX suggested, XXXX XXXX was the only company who called us back and was hired to begin the restoration on XX/XX/XXXX. Their estimate was approved and we received a check for XXXX to settle their invoice once the work was completed to our satisfaction. SPS 's name did not appear on either check. 

Before remediation could begin, the furnace and flex ducts needed to be replaced. XXXX XXXX XXXX XXXX XXXX ' estimate was approved and all work was completed on XX/XX/XXXX. XXXX XXXX issued their portion of the payment of XXXX  on XX/XX/XXXX and we added out deductible of XXXX to pay XXXX 's total invoice for XXXX}. Again, SPS did not appear on the payment check. 

The remediation project was completed approximately 3-months later on XX/XX/XXXX and XXXX XXXX was paid in full after we were satisfied. XXXX subcontracted our textiles cleaning ( upholstery, clothing, etc. ) to Renewal by XXXX and their estimate of XXXX was approved by XXXX XXXX, but has not yet been paid. XXXX has all of our home contents ( chairs, tables, case goods, etc. ) in their cleaning facility and that estimate has yet to be presented. Their final cost depends upon the completion of the " build-back '' portion of the restoration as storage fees may need to be added. 

Meanwhile, XXXX XXXX has been paying for our lodging expenses, mileage, and food with an estimated {XXXX  in additional claim funds ( no SPS on any of those payments ). We received a payment of XXXX in reimbursements for receipts we submitted and SPS was not included. 

The " build-back '' contracting company estimate ( re-painting, new carpet, lighting replacements, etc. ) by XXXX XXXX XXXX was presented to XXXX XXXX. We received a check on XX/XX/XXXX for the amount of XXXX to pay for XXXX 's portion of the project, but SPS 's name now appeared on the check. As instructed in the SPS document, we sent the check without our endorsements to their XXXX, Ohio office on XX/XX/XXXX in anticipation of their quick turn-around commitment. They received it on XX/XX/XXXX, but the check was never returned as promised. XXXX was to begin work on XX/XX/XXXX, but the project XXXX asked us to identify our mortgage company. When we provided SPS 's information and the project was stopped. XXXX 's reason was that SPS takes too long to pay out and that we would have to find another XXXX to work with. 

As of today, SPS refuses to release any of the " build-back '' funds because they now need to " monitor '' us to make sure " the work gets done '' because " we might run off with the money. '' Where were those SPS inspectors for the past 3-months-plus while we were restoring our home? We lost the contractor we worked two long months to procure and our restoration has stalled for the past 2-weeks! Repeated phone calls to SPS has accomplished nothing and they refuse to release any funding. The insurance money is OUR money and we need it so we can begin searching for another contractor. We need OUR money now! We had the home built in XXXX, we have been its only occupants, and we've paid our mortgage, escrow, insurance, and tax payments for over 27-years! It makes no sense that SPS lied to us and are holding our insurance check. They can not cash it without our signatures and we can not finish restoring our property to pre-loss condition without the funds! 

There will be more checks coming to reimburse us for personal item losses, mileage, additional interior cleaning, and other pre-loss related expenses. We understand that SPS will most likely appear on those forthcoming checks and we can not endure the delays they will create as those we are currently experiencing. SPS has been informed that they can send as many inspectors as they wish to make sure the work is being completed, but that THE FUNDS ARE NEEDED TO COMPLETE THE WORK! 

We have been trusted with an estimated {$56000.00} in insurance funds so far and the restoration has been ongoing. Now, we're at a standstill while SPS 's incompetence and lies have stopped all progress. Please help us get OUR money so that we can move back into OUR home. 

Respectfully, XXXX XXXX & XXXX XXXX XXXX

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