Consumer complaint received 2015-04-23
Company: JPMORGAN CHASE & CO.
State: NY
Product: Bank account or service
Sub-product: Other bank product/service
Issue: Deposits and withdrawals

Complaint:
In XXXX of XXXX I made an offer to buy a house in XXXX, Maryland on a short sale. The offer was accepted in XXXX XXXX and was to go to closing in XXXX XXXX. On XXXX XXXX, water pipes in the unoccupied house froze and burst with considerable damage. The sale was put on hold. 
The seller filed an insurance claim and was awarded funds for repairs, which were deposited in the Insurance Claims Department of Chase Bank. 
I renewed my offer. About half of the insurance repair work was completed at that point. The reason the work progressed so slowly was that the contractor hired by the seller became difficult to contact and was dismissed after payment for the work completed. The remaining work was for mold remediation, floors and repair to the heating system. A total of {$14000.00} remained in the insurance claims benefit. At this point, my real estate agent informed me that it would be best to accept the remaining money rather than wait for the repairs to be completed because the house might be placed in foreclosure by Chase. With this understanding a new closing was set. 
When we were assured the sale would take place I contacted a new firm to do the work needed for the insurance repairs along with other rehabilitation work on the house. The seller and his agent contacted Chase Bank to add my name to the account for the insurance claims benefits and I was told the bank agreed to this arrangement. On the day of closing the seller and his agent assured me there would be no problems accessing the insurance claims benefits which would be payable to the seller or his assigns. We closed on XXXX XXXX, XXXX, and our contactor began work on XXXX XXXX, XXXX. Shortly after closing I applied to Chase Bank to change the name of the contractor and to begin the process of accessing the funds. I was asked to supply the following ; Declaration of Intent to RepairContractors Lien WaiverInternal Revenue Form XXXXCopy of a certified letter to the original contractor, returned as undeliverableNotarized Hold Harmless Agreement from the SellerCopy of Affidavit of " Arms Length Transaction '' All of these documents were faxed to XXXX XXXX in the Insurance Claims Department XXXX Chase Bank. From XXXX XXXX until now I have made numerous telephone calls to follow up on this matter. I was told by Chase it would be necessary for " Corporate '' to approve the change of contractors in order to access the funds. 
On XXXX XXXX, XXXX, I made the following series of telephone contacts with these results ; '' XXXX '' in the Insurance Office told me " Corporate says they will not release any funds until all proper documentation has been submitted. '' I asked to be forwarded to " Corporate. '' I was told to call XXXX. 
XXXX XXXX at that number said he was in the Checking Department. He told me to call XXXX. Whoever answered that number told me to call XXXX, where, XXXX XXXX told me to call XXXX Customer Service at XXXX. At this number, XXXX XXXX referred me to " XXXX '' in XXXX XXXX. 
'' XXXX '' informed me that " A VP wrote a letter saying the insurance money was not included in the short sale so Chase would keep the money. '' She said the letter was sent on XXXX XXXX ( a Sunday ) to an address in Arizona. 
'' XXXX '' then forwarded my call to XXXX XXXX in the Insurance Claims Department who told me she needed documentation that the insurance settlement was to be forwarded to me. 
Realizing that this is where the conversation started. I closed the phone call. 
I have e-mail and fax documentation to all the information above as well as the account number in which the insurance funds were deposited at Chase Bank. 
Based on those conversations, I conclude Chase does not intend to release the funds that are on deposit and instead Chase intends to appropriate the funds to themselves.

Company response to consumer: Closed with explanation