Consumer complaint received 2016-11-16
Company: NATIONSTAR MORTGAGE LLC
State: NV
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Our home was serverly damaged as the result of a flood caused by a broken water supply line during our spring break vacation XX/XX/XXXX. We immediately contacted our Insurance company then shortly after our Loan Servicer Nationstar Mortgage. Our homeowner 's insurance company has issued a claim check which we have endorsed and forwarded to Nationstar as instructed. As of today Nationstar refuses to release any of the claim funds for repairs of our home. Our account is in good standing and we feel they have no grounds for holding these funds. We have been arguing with Nationstar for several weeks and getting nowhere. Nationstar is unwilling to release these funds unless we are to hire a licensed general contractor. We have explained to them that we are not going to hire a general contract and that we will be performing repairs ourselves as " owner builder ''. We have gone as far as to provide Nationstar with copies of the City of XXXX Building Department issued " owner builder permits '' as well as a copy of the Nevada NRS statues 624.031 but still they refuse to release funds and allow us to proceed with repairs. As previously stated we have been dealing with this issue for several weeks and have been asking for them to give us a written explanation for withholding these funds or written explanation as to what they are requesting before releasing the funds. Nationstar refuses to give us anything in writing. They also refuse to give us an email address which is preventing us from documenting our exhausted efforts in resolving this matter. Additionally, they have refused to provide us with the name and contact information of our mortgage loan investor. After several weeks and many hours of calling and wasting our time with different representatives they tell us verbally our request for release of funds for repairs is denied due to state Law regulations as they claim I am required to use a licensed contractor. We keep telling them they are WRONG! 
-XX/XX/XXXX Submitted to Natiostar Insurance claim checks XX/XX/XXXX Provided them with City of XXXX Owner Builder Permits. 
XX/XX/XXXX Faxed them Nevada Revised Statue Code NRS 624.031 paragraph XXXX where it clearly states exempt for owner builder of primary residence. 
XX/XX/XXXX Sent them page XXXX of my signed Deed of Trust and pointed out Paragraph XXXX where it stipulates the procedure in the event of a loss. Nowhere in my agreement with lender did it require for the use of a licensed general contractor for the repairs of my home. 

We have asked to provide us in writing their specific request for the use of licensed contractor as well as a denial letter. They refuse to give us ANYTHING in writing. We have asked them to provide the state law they claim requires the use of a licensed contractor. They say they do n't have it. They refuse to provide us with the name and contact information to the investor of our loan. How can they do that?? 

My wife, XXXX children and I have been displaced from our home for several months now and we have done the best we can in upfront the cost of repairs, but at this point we are running out of our own funds and Nationstar is now delaying the re-construction of our home. XX/XX/XXXX will be the last month our Insurance company will pay for relocation rental and after this date we will have to pay out of pocket. Our current mortgage balance is only half of what our property was last appraised in XX/XX/XXXX, after re-construction and with the improvements we are increasing the value of our house by XXXX. It is unfortunate that we have to deal with a third party-servicing company who has taken control of the insurance claim funds and has implemented their own regulations outside our loan agreement with the Lender and outside State Law regulations. We ask that someone help us/guide us in getting our situation resolved.

Company response to consumer: Closed