Consumer complaint received 2017-11-01
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (TX)

Our 3 year old home that we had built was damaged due to XXXX XXXX with approximately 18 inches of water ; as this is our first home and first residential insurance claim and dealing with PennyMac has been the biggest nightmare. We were evacuated from our home by boat on XXXX XXXX at XXXX a.m after our new subdivision drainage system failed and caused water to enter our home and it remained for 6 additional days due to issues. Due to me having medical issues we opted to have a cleaning company on standby to properly ensure clean out when we were finally able to re-enter our property. After all this is our residence that we had built and in our community. We are actually home owners that want our home built back to it 's original state. Our flood insurance adjuster came out to view our property on XXXX/XXXX/XXXX did a complete walked through and advised us that he would give us an advance payment to get us started to at least rebuild part of the interior. We were advised that our mortgage company would have to endorse the check and experiences with accessing the funds would vary and now I understand why. As we have spoken with others ; PennyMac definitely gets an F in this area. Once we were able to access our home and have it cleaned out to ensure the home will be livable without any long term issues ; we interviewed multiple contractors. We received our check and sent the payment to PennyMac to endorse with the understanding that the investment to rebuild is as important to them as it is to us. We finally opted to hire the company that was part of our original build through the builder ( just 3 years ago ) to come in and do insulation, sheetrock, floating ; etc to restore our walls to their original state. Before we hired him I made several attempts through PennyMac useless Loss claim department to be giving different answers. I finally took my issues to their social media page which is ridiculous, because we have NEVER missed a payment and our mortgage has been on autodraft for the past 3 years. Why do I have to deal with your social media reps to get an " ADVANCE payment for the basics? '' If there is not anything else that needs to be done in the home the insulation and walls must go back in. Their social media contact was very nice and able to get us a part of the funds released. I submitted the contract, waiver of lien and XXXX to Penny Mac 2 weeks out prior to the job being completed to make sure the remaining funds would be released for me to pay the contractor. Well that did n't happen. Here we are with a contractor doing the basics to restore the walls, trims and doors and PennyMac has decided not to release funds until they get our XXXX XXXX XXXX worksheet. I contact our adjuster daily and he 's fully aware of our issue, but explained that an Advance Payment should n't require so much as this is just to get you started. The mass impact on XXXX has slowed down the process and he has advised it could take almost 2 months before we receive his report. The interior wall work has been completed with touch ups to follow as the remaining work is done and after 2 weeks of submitting all of the info ; the contractor is ready to be paid the balance. The final balance payout estimated amount was estimated at XXXX ; but there were some unforseen circumstances due to the company that removed things which resulted for us to have to pay XXXX out of pocket and none of that included the XXXX we estimated to receive from PennyMac. There is an additional XXXX  advance payment that PennyMac is sitting on that they are giving us the run around to release. I am so frustrated and wish we could refinance now and never have to do business with them again. You are expecting regular mortgage payments, but you are not releasing funds and we are spending out of pocket for costly projects as we have no guaranteed long term residence. All of our finances are going to do work that your incompetent essentials that your business refuses to release and sitting on. We are only doing the necessities to have a guaranteed place to live and they are terrible when it comes to this. Our adjuster has advised it may still be several weeks before his report is available. Your representatives are obviously not prepared for flood as I have been advised multiple times I should have this information by now. I have no issues with sending progression pics or you sending an inspector out, but my issue is with your business holding our funds. We lost our vehicles also in the midst of all of this. NO CONTRACTOR will wait on you to decide if and when you are going to pay. As a mortgage lender ; there are surely alternative options for recourse. During our interview process most contractors declined to assist as they have advised they expect timely payments and this small task has proven your company is XXXX XXXX to handle these claims.