Consumer complaint received 2018-04-27
Company: Reverse Mortgage Solutions, Inc.
State: CT
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Trouble during payment process

Complaint:
Two years ago I took out a Reverse Mortgage on my home in Connecticut as it needed extensive repairs. I did not have a mortgage, my house was free and clear but it wasn't attractive enough to try and sell and the market was very soft at the time. My servicing company is called XXXX XXXX  XXXX and they are located in XXXX and XXXX, NC among other places. 
I am not in default on my taxes or Insurance. 

In XX/XX/XXXX, I had an accident and damaged my garage beyond repair with a vehicle and after the Insurance adjuster looked at it late in XXXX it was condemned and had to be demolished in XX/XX/XXXX before the snow loads brought it down as it was structurally unsafe. My insurance company gave me a personal property check for {$1700.00} and also a check that was made out to me and RMS in the amount of {$14000.00}. I was not able to put this check into my account so I sent it to RMS and they finally deposited it. 

I started sending them receipts for work that was done, XXXX forms, Lien waivers, and all sorts of paperwork that they wanted which seemed excessive and redundant, yet they never disbursed any of the money my insurance company gave them or reimbursed me for the expenses I had to cover personally. Several times I was told that they didn't have certain forms when in FACT I had already sent them. 

The total loss is actually well over {$40000.00} but this was the first draw meant to cover the demolition and start the foundation. I sent them all the paperwork they wanted for the demolition but the contractor has only been paid less than half the balance for work he did in XX/XX/XXXX. I also have not been reimbursed for all the other expenses that my town and state required despite the fact that I have provided them with all the paperwork and forms they requested. 

Every time I call to find out why I have not yet been reimbursed I get the run around and am told the the Government requires all this documentation, and still, no money except for one partial payment to the demolition contractor. His contract was {$6500.00} and he has only been paid {$2700.00} so far. They then said I had to have one of their inspectors come to my house to see that the work was done. He came the next day. That was three weeks ago. The town building inspector already signed off so I do not know why I needed another inspection for {$170.00} taken out of my insurance money. 

So today, on XX/XX/XXXX, I called to find out why I had not yet received the balance for the Demolition and they told me that the job was only partially done by 28 % so they could not pay the balance. So, I have basically had it with them and am making this complaint because they are holding up the replacement of my garage. I want my insurance money back from RMS so that I can take care of this matter and get my contractors paid so I can get the garage built myself. 

The people who work in this organization know nothing about the construction process and they do not know what they are doing. I have had three reps since I started. The first one was XXXX XXXX, the second was XXXX XXXX, and now I have a new one today called XXXX. She said she needed to talk to her supervisor who is named XXXX, but XXXX left early for the weekend at XXXX when I called and XXXX wasn't sure if she would be in on Monday or not. 

If there is a loss the homeowner should handle it or if they are not capable the XXXX XXXX should hire a contractor to get the building repaired or rebuilt. This whole situation that they create to hold onto the insurance money is ridiculous and needs to be corrected. There are plenty of people out there who need the work and are willing to get the job done but instead, this company is unreasonably holding onto my insurance money and this is extremely stressful especially to Senior Citizens. 

So, they have been holding on to a balance of Over {$12000.00}, funds that I need to start rebuilding my garage and to pay the demolition contractor. This company is not responsible enough to handle the disbursements for construction projects. I feel that they are attempting to steal my Insurance money from me by continually attempting to frustrate me until I give up. I WANT MY INSURANCE MONEY SO I CAN GET MY GARAGE REBUILT!!!!! HOW COMPLICATED IS THAT!!!!!!??????

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