Consumer complaint received 2023-11-29
Company: Fay Servicing, LLC
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Trying to communicate with the company to fix an issue while managing or servicing your loan

Complaint:
I had a major storm that damaged the solar system and roofing on my house and garage. My insurance carrier, XXXX XXXX, sent out an engineer to document the damage and an adjuster issued a check to effect repairs. Because Fay Servicing LLC bought my loan from XXXX XXXX, they were included as a payee on the insurance check. The check was for roughly {$110000.00} and I submitted contracts with two contractors to replace the solar system and roofing. 

According to Fay Servicing, the loss claim process was to take 8 to 10 days for me to receive the first draw after they received the check. I was advised to send the check priority mail to them, which I did, and I confirmed delivery was made on XX/XX/23. I called roughly one week later to check on the status of the funds release. Fay told me that they had been trying " all week '' to contact my adjuster to verify the date and type of loss. I was assured the funds had been placed in a trust fund. I called my adjuster right away and was told that he had not received any calls from Fay, but that he did have one mumbled voicemail that was unintelligible and came from a private number so he did not know if that was them. He called them that day, told them what they needed to hear, and then called me back to relay that information. 

I waited another week and called in to check the status and I was told that the initial release for one-third of the funds was in process. I pointed out that, per the contracts Fay told me I had to send to them for review, both contractors had terms of one-half up front and the remainder on completion. Fay then told me that they would have to submit a special request because the amount was over {$40000.00}. I asked why that had not been done since they had the contracts and they had no answer. I was told again that from that point, it would be 8-10 days. 

I have called numerous times to find out where the funds are and each time I am told that it should be done in 8-10 days. I was told on XX/XX/XXXX that a check for {$47000.00} should arrive " this week ''. Then when I called again on XX/XX/XXXX, I was told that the check was written on XX/XX/XXXX, but they were not sure if it had been mailed. I was told that the check should arrive either Wed before or Mon after XXXX. In the meantime, we had a very heavy rain storm and the damaged roof leaked, causing additional damage inside the home. I called Fay to let them know this and asked what they would do about it. Their response was that they would " release another {$20000.00} ''. I told them this was NEW damage resulting from their delays and releasing more of my money that was for the old damage was not a solution. I asked the supervisor to go up the chain and get my original draw released and find out what Fay would do since it was their fault I had suffered more damage. I was told that would happen and I said I will be waiting for a phone call. 

Fay Servicing has been holding my funds in a trust account since XX/XX/XXXX and it is now nine weeks into the " 8-10 day '' process. Winter is setting in and my roofer may not be able to install a new roof due to the colder weather.

Company response to consumer: Closed with explanation