Consumer complaint received 2017-12-07
Company: FCI Lender Services Inc.
State: DC
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX I signed a letter of commitment with XXXX for a hard money loan for {$660000.00}. It was a refinance with a 12 month term, 10.50 % interest rate, {$5800.00}. 63 monthly payments, {$270000.00} construction budget, {$52000.00} Interest reserve for the monthly payments. 

During this time, I had to submit a contractor for the construction/renovations and the one I personally submitted was refused by the lender. They in turn referred me to a contractor they knew and insisted that the only way they could fund the loan is if I used the their contractor. Reluctantly, I agreed and moved forward with the loan. 

On XX/XX/XXXX I went to closing and my first mortgage of {$180000.00} & second mortgage of {$61000.00}, {$1400.00} water lien, {$1200.00} real taxes, and additional fees were all paid. I personally received {$49000.00} for myself. 
Once the loan was finalized the renovations were to begin and their contractor started working. Over the next 5 months the contractor completely gutted my house down to the struts, never pulled the property permits and/or plans to complete the work that I requested, and painted the house even when I told him not to. As I went to visit the property to see the progress when ever he would show up, I notice the sub floors were broken, unleveled, placed over old rotten materials the were already there a mixer of old and new wood. There are places kwhere you can see through the floor to the outside of the house. The house was suppose to get a additional bump out from the basement up, and the contractor had started framing the original structure of the house, he was suppose to replace the roof and just filled it in with ply wood around the bad existing roof, and damaged the basement while digging it up. During this time after constantly requesting the plans and permit the lender and I still never received them. After stressing my concerns to the lender and they agreed on XX/XX/XXXX I then terminated the contractor and immediately went to find a new one because I had lose so much time and money on his renovation draws {$38000.00}, and {$34000.00} interest reserve payments. I then found out the contractor the lender referred me was not a licensed contractor and did not apply for the proper permit and plan to renovate my home according to the agreement. Once I found the new licensed contractor and he propived everything the lender requested to get started, they kept stringing the deal along. Once he provided one thing, they would ask for 3 more, he would provide that and they in turn asked for 2 more and it just continued until my payment reserves ran out. During this time my house is completing gutted down to bones just sitting. Now we are 1 year later and my house is still in the same condition because the lender would not provide money from my renovation reserves to move forward with the new contractor.

I recently found out that my loan was sold, even while the current lender knew of all of the bad dealings going on. Now the current loan holder has threaten me with foreclosure and I am afraid that I may lose my home that 's been in my family for almost 50 years. With the current condition on my home I am unable to refinance out of this loan to a tradional mortgage and I can only qualify for another construction loan with a high interest rate and loan amount to cover all of the fee that have now accrued.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation