Consumer complaint received 2019-08-30
Company: Shellpoint Partners, LLC
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
An insurance claim for roof damage was submitted on lender based insurance, after a storm, in XXXX.The mortgage was sold out to Shellpoint before the claim was completed. The mortgage was delinquent at that time due to my mothers illness. My mother passed away after the mortgage buy out. I did not have knowledge that the claim would continue after my mothers passing. Shellpoint agreed to let me ( her daughter ) assume the loan. In XX/XX/XXXX, Shellpoint contacted me for the first time about this insurance claim from XXXX. I supplied all the required documents and began to feel that I was being given the run around. Shellpoint would claim they received some documents but not others even though they were sent in the same email or the roofers insurance had expired, etc. The roofing company also contacted Shellpoint after Shellpoint continued to say the paperwork from the company was not correct. I was told, by Shellpoint, to contact three different insurance agencies ( XXXX XXXX, XXXX, and XXXX XXXX XXXX ) for information on the claim even though Shellpoint had access to this information the whole time. After speaking with XXXX XXXX XXXX on XXXX XXXX, I learned Shellpoint had received about half the claim amount ( {$2000.00} ) at the time of the mortgage buy out and the remainder was available as recoverable depreciation that required action on the claim in a certain amount of time. After contacting Shellpoint, regarding this information from XXXX XXXX, I was told the funds had been placed in a restricted escrow account from the time of the mortgage buy out and I had lost any capacity to recover the depreciation.I believe the only reason Shellpoint ever informed me of the claim funds was because of the loan assumption. XXXX released the first insurance payment of XXXX dollars on XXXX, XXXX. The next disbursement would be when 50 percent of roof was complete. I informed Shellpoint no one can start a roof repair through a roofing company with only XXXX dollars. I asked that all the funds be released. Shellpoint said this was not an option because the loan was delinquent at the time of Insurance claim 5 years ago so Shellpoint had to allocate funds in this manner to assure the funds were used to improve the property. So Shellpoint doesnt trust me with the lump sum of XXXX XXXX dollars of claim funds but they agreed to let me assume the much larger mortgage note. I have received annual escrow reports over the years and never to my knowledge were the claim funds represented on any report. I believe Shellpoint thought the property would be foreclosed on and Shellpoint intended to keep the insurance claim funds. Due to this extended situation, the home has continued to suffer related damage. Had Shellpoint been transparent and communicated with me the roof could have been repaired years ago. I have contacted Shellpoint on numerous occasions including but not limited to the following dates : XX/XX/XXXX & XXXX, XXXX XXXX, XX/XX/XXXX & XXXX, XXXX, XXXX XXXX, XXXX XXXX XXXX was the Shellpoint insurance contact.

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