Consumer complaint received 2017-01-06
Company: NATIONSTAR MORTGAGE LLC
State: LA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I am a victim of the recent flood in XXXX Louisiana. The interior of my home was a complete loss. I received payment from my flood insurance policy. The check mailed to me was made jointly to myself and my mortgage loan company. I endorsed the check and mailed it, along with the invoice from my builder, to the mortgage servicing company, which now services my mortgage loan. 

I divorced 4 years ago. In the final divorce decree, the judge ordered my husband to relinquish any and all interest in the real estate and my home. The divorce attorneys handled all of the paperwork necessary to accomplish the order in the divorce decree. I have verified ( through a title search ) that I am the only owner listed on my property. I have been told that Louisiana does not have " quit claim deeds '' but the document " marriage dissolution settlement agreement '' is what is filed instead of a " quit claim deed '' As is common, although my husband no longer has an ownership interest in my home, the mortgage company did not release him from the liability of the original signed real estate loan. I understand this is common, but he has no ownership interest in the home. He has never required ( nor did the divorce decree ) that he be removed from the original loan as a responsible party to the debt. 

Having said this, my insurance policy was in my name only, as I am the only owner of the home. The mortgage servicing company endorsed the check, and then re-issued a check made payable to myself, the builder, and ( of all things ) to my ex-husband, who was not a party to, neither the insurance policy I paid the premiums for, nor the initial check issued by the insurance company. 

They now refuse to remove my ex-husband 's name from the check, but are requiring me to produce a " quit-claim '' deed, signed by my ex-husband, to prove he has no interest in the home. I have tried to discuss this issue, and come up with a solution with them, to no avail. They will not pull a title search to verify that I am the only owner, and will not accept the one I pulled. They are requiring me to obtain a " quit claim '' deed from my ex-husband. 

At this point, I do not even know where my ex-husband is, and I do not believe that I need to obtain any additional evidence of his not having an ownership interest in my home other than the divorce decree and a current title search, and property tax bills ( which the mortgage servicer obtains and pays annually ), that show I am the sole owner of my home. 
In addition, the original check from the insurance company was made only to myself and the mortgage company, I do not believe that they had the authority to add my ex-husband to the mix, as he was not even named on the check, and is not a party to the policy ( which again is paid for by the mortgage servicing company through my escrow ). 

I am getting nowhere with this company, and my builder will not finish the work of restoring my home until he receives payment. I am now living in a home that is destroyed with no way to get my builder paid to finish my home. 

I have suggested the solution of the mortgage servicing company to re-issue the check to the builder only, which will ensure the home is repaired, as I endorsed the first check, and feel there is no need for them to re-issue the replacement check to me, just the builder. But the mortgage service company refuses to do anything unless I provide a quit claim deed, or a letter from the divorce judge. They will not accept any of the filed divorce documents, or title search, or property tax bills, or the insurance policy documents, they paid for, that show I am the only owner of this property. 

With over XXXX homes destroyed in my parish, my builder is overwhelmed with work, and he is going to move me back to the bottom of his " jobs-list '' until he receives payment. I greatly need assistance!

Company response to consumer: Closed with explanation