Consumer complaint received 2019-02-14
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC (LA)

As of today, XX/XX/XXXX, I am over composing letters for requests for XXXX XXXX XXXX/ ShellPoint Mortgage Company . 

On XX/XX/XXXX my family and I experienced damage to our home due to a tornado causing a tree to fall through our ceiling. 

We received an initial payment of {$36000.00} which we signed over and sent to our mortgage company at the time, XXXX. 

We hired a contractor to work on our home, and he was approved by our mortgage company, on XX/XX/XXXX. On XX/XX/XXXX we supplied all the documents to the mortgage company and still had to wait until XX/XX/XXXX for our contractor to receive an initial payment of {$18000.00}. 

Once the builder started working on our home, he informed us that there was more damage and started getting estimates to XXXX XXXX so that there would be enough money to fix our home. 

On XX/XX/XXXX we settled with the insurance company because our builder assured us, he would be able to complete the job for {$73000.00}. 

Unfortunately, soon after settling we learned our contractor hadnt worked on our home since XX/XX/XXXX. The area of the roof that was worked on, they had re-used broken and splintered joists and rafters that had been hit by the 40ft tree. They also left that area left uncovered with XXXX sheets and felt for our home to be rained on for 3 months. Thus leaving it in worse condition than the original damage the tree caused. For those reasons and many more we decided to terminate XXXX XXXX with XXXX XXXX XXXX  XXXX on XX/XX/XXXX. Soon after we filed a police report with the XXXX XXXX Sheriffs Department for Home Improvement Fraud. Its dated XX/XX/XXXX, case # XXXX. 

Before we officially terminated the contractor, I spoke with XXXX with the Loss Draft Department for ShellPoint to inform them of the situation at hand and was told we needed to have the contractor sign a Waiver of Lien. Which we did. I also asked what they were going to do about getting the money that was taken by Mr. XXXX, as it is evidenced and documented in the investigators report, he had not used all the funds given to repair my home. I told there was nothing they could do, because they do not have the resources. This left me rather frustrated because here we are victims of a natural disaster and now victims of home improvement fraud, and our mortgage company, the company that required us to hire a LICENSED AND INSURED CONTRACTOR WONT STEP IN ON NOT ONLY OUR BEHALF BUT THEIRS AS WELL, THEY HAVE AN INVESTMENT IN OUR PROPERTY AS THE LENDER. 

At that time, we had decided enough was enough. We wanted to take our homes future in our hands, because license contractor or not, money lost was not going to fall on the mortgage company. It would be taken from the home WE live in. We were advised by XXXX, a ShellPoint representative to complete a letter of self-repair, which we did and submitted on XX/XX/XXXX. In our letter we explained that it is in the best interest of XXXX and Lender that I serve as Owner-Contractor, because I have a great interest in my home being whole again. At the end of the day I am the one responsible, contractor fraud or not. I further went into detail on the experience we had with our former contractor and how I can not fathom putting our trust in anyone else to appropriately use the remaining insurance disbursement for actually repairing our home. At this point, with {$18000.00} gone, and almost all of the 26 % work it covers still to be completed, doing self-repairs will be the only way we will come in under budget, and add value when done. We sent them receipts for repairs we had already done with our personal savings. We requested emergency funds be released so that we could hire a roofer to fix the roof that had been leaking for months. We needed funds to do the most efficient repairs to mitigate any further damages caused. That request went unanswered which forced us to use rolled roofing as a temporary fix. 

We didnt hear anything back concerning that letter, until I contacted ShellPoints loss draft department and spoke with XXXX a few weeks later only to be told we needed to compose a letter for why we dont feel comfortable hiring another contractor. I have already covered that in my first letter, so why? I was then informed that because our home repairs were over {$40000.00}, they couldnt grant my request for self-repair, but would forward my letters to their parent company and well see what happens. I asked why I couldnt speak with someone at this mysterious parental company, in which they would not name and was told that I needed to draft up these letters and they would reach out to them on my behalf. 

Today ( XX/XX/XXXX ) I called ShellPoints Loss Draft Department to follow up on my letter that was mailed via certified mail on XX/XX/XXXX, and was told by XXXX at this time, again they could not approve self-repairs for amounts over {$40000.00}, but he would pass my letter onto the mysterious higher ups. 

It does no one any good to leave my home damaged. The mortgage company benefits most once my home is restored to the condition it was in when we bought it. And I plan on it being better than that. 

As I have said in my certified letter to ShellPoint and will reiterate here- The responses weve been getting from Loss Draft Agents concerning the funds in escrow for repairs is unacceptable, first and foremost is the response to our request emergency roof repair or for reimbursement on monies already spent or draws to work either performed ourselves or to be sub-contracted out acting as Owner-Contractor. The Louisiana State Board of Licensing for Contractors ( LSLBC ), and Louisiana Statutes grant me the right to be exempt from many of the laws requiring a license for work performed on my own home, and that right granted by the State of Louisiana cant be taken away. The Covenants of our Mortgage Agreements neither prohibits, nor could it violate my rights, and also states ShellPoints right to Restoration or Repair, and that they may pay for repairs and restoration in a single disbursement or a series of progress payments as work is completed. 

We have also not only found it very hard to communicate with someone with authority or in management resolve this matter, but have found it to be an impossible task, so I am also requesting contact information to be provided with the name, direct telephone number, and email of a contact or department for handling special circumstances for getting in contact with a person or people with authority to work with me on ShellPoint Financial Corporations behalf. 

I would appreciate if ShellPoint would give a written response to the following questions : 1. Why were we required to hire a licensed and insured contractor if ShellPoint didnt have any interest in recouping monies lost from home improvement fraud? 

2. Are the insurance proceeds paid to myself and ShellPoint that are now being held by ShellPoint in an interest-bearing account? 
If so when will monies generated from interest be released? 
3. Would like to have a written explanation as to why we havent had any assistance in emergency roof repair? 
4. Ive submitted receipts for repairs made, when can I expect reimbursement? 
5. A total of {$70.00}, XXXX has been paid in insurance proceeds, although we occurred a loss of {$18000.00} due to contractor fraud, leaving {$52000.00} that has been deposited in ShellPoints escrow account. Having said this, I would like to know why cant we have ShellPoint 's blessing and move forward with self-repair? Thats only {$12000.00} over the {$40000.00} limit discussed. In the bigger picture, since ShellPoint couldnt be involved in recovering the {$18000.00} lost, whats the point anyway? Why step in here, but not there? 

I am fed up and have been left with no option other than to file this formal complaint in hopes that this may finally come to a reasonable resolution.