Consumer complaint received 2024-04-12
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: PLANET HOME LENDING, LLC (NJ)

I closed on an FHA XXXX ( k ) rehabilitation loan on XX/XX/XXXX, with XXXX XXXX Mortgage to completely renovate the small XXXX XXXX house I purchased as my primary home in XX/XX/XXXX. The terms of my contracts with the lender and the contractor state that the project was required to be completed within 6 months from closing for a maximum total cost of {$480000.00}. The final completion date was set to XX/XX/XXXX. 

To afford both the new mortgage payment and alternative living accommodations during the renovation, my XXXX teenagers and I moved into an RV in our backyard, expecting the project to start any day according to the contractor. 

In XXXX XXXX, XXXX XXXX Mortgage informed me the loan had been sold to Planet Home Lending, but XXXX XXXX Mortgage would continue to service the renovation draws. 

I did not realize until much later that the contractor, XXXX ( k ) loan consultant, XXXX XXXX Mortgage, and Planet Home Lending had all worked on FHA XXXX ( k ) loans together many times before and therefore had established relationships, which unfortunately was not in my best interest. 

My town took XXXX months to approve the permits, so demo did not begin until XX/XX/XXXX, and the project completion date was pushed back to XX/XX/XXXX. 

In XX/XX/XXXX, XXXX XXXX Mortgage notified me Planet Home Lending would be servicing the loan and draw requests going forward. 

Between XX/XX/XXXX, and XX/XX/XXXX, the contractor and the XXXX ( k ) loan consultant successfully conspired to obtain my authorization for the disbursement of {$46000.00} from the Contingency fund for work not completed in violation of HUDs FHA XXXX ( k ) Program requirements, which mandates that work be 100 % complete before funds are released to the contractor.

The contractor did not complete the project by the XX/XX/XXXX, deadline and requested a XXXX extension. I was told by the lender that I had no choice but to approve the request or the loan would be in default. I approved, and the completion date was revised to XX/XX/XXXX. 

During this extended period, the contractor came up with ridiculous excuse after ridiculous excuse to further delay the project, try to collect more money, and maximize his profit margin. Not one of his excuses was justifiable based on the terms of the contract. Then, with support from the loan consultant and lender, the contractor attempted to coerce me to approve more than {$22000.00} in additional funds from Contingency without any justification, receipts, invoices, quotes, estimates, etc. When I refused to approve a disbursement of even {$1.00} more until the contractor explained why all the work that he had already been paid for was still outstanding, he ceased all work on my renovation indefinitely. The last day any work was performed on my project ( to date ) was XX/XX/XXXX. 

I repeatedly asked Planet Home Lending to remind the contractor he was required to adhere to the contract terms, all applicable laws and regulations, and XXXX FHA XXXX ( k ) Program requirements. Planet Home Lending told me ( via two separate emails ) they were aligned with the contractor and loan consultant, and I needed to work things out with the contractor to move my project forward. 

At that point, I realized I had no choice but to obtain legal counsel since I was the only person involved in the project who was honest, believed in the legality of the contract, and naively expected all other parties to adhere to XXXX FHA XXXX ( k ) Policy Requirements. 

In the end of XX/XX/XXXX, I retained an attorney to fire the contractor and help me get the project completed. After XXXX months of billing me a ridiculous amount of money for basically doing nothing, including not firing my contractor, I had to face the fact that my attorney was making way too many accommodations for the contractor and not fighting for me. For the past 2 months I have been unsuccessfully searching for an attorney who will seek justice on my behalf on a contingency basis because I have no money left. Both me and my project are stuck in limbo. 

Since loan closing, there has been nothing but unjustified contractor delays, deficiencies caused by the contractors negligence that have not been corrected, and numerous violations of XXXX FHA XXXX ( k ) Policy Requirements by the contractor, loan consultant, original lender ( XXXX XXXX Mortgage ), and current lender ( Planet Home Lending ). As a result, the house is still not livable 20 months after closing, and no one is willing to help me. 

I also just became aware that the current lender in XXXXs database is still XXXX XXXX Mortgage, which was purchased by XXXX Mortgage last year. According to XXXX, XXXX XXXX Mortgage is the owner of my loan and Planet Home Lending is the servicer. 

Below is a summary of the current state of my home, including the deficiencies caused by the contractors negligence : Interior : The interior contains sheet rock and insulation only The house is not closed in due to missing Bilco doors to the basement and a missing basement window - both openings have allowed water to enter the basement each time it rains for more than 6 months There are no toilets, sinks, tile, flooring, interior doors, trim, lighting, electric, water, sump pumps, or finishes The electrical panels have not been upgraded or installed The HVAC system is not fully installed : 1 of 2 furnaces and 0 of 2 AC condensers are on site The attic and crawl space are wide open Exterior : The house has not been sided, and no gutters have been installed The deck was not framed according to the architectural plans and does not have floorboards or railings The roof above the deck is supported only by a single temporary piece of splintering wood The front porch has not been updated, the driveway has not been paved, the backyard has not been graded properly after excavation, and water continues to pool around and infiltrate the foundation Garbage, rubble, and construction materials, including nails and screws, were left all around the property, including inside the house There are numerous holes and pipes on the exterior that do not connect to anything on the inside The house was left standing with no exterior door handles or locks, no alarm system, no exterior lighting, no fire alarms, no smoke alarms, and no carbon dioxide alarms Deficiencies Caused by the Contractors Negligence : Structural support posts not positioned on footers and/or incorrectly positioned on footers Structural support beams not properly secured and/or supported Windows and exterior doors installed on top of Tyvek with no waterproof taping or drip trays, resulting in recurring water damage inside the home to the sheetrock/drywall, insulation, subfloor, framing Claims, Damages, and Supporting Evidence : I have spent the past few months analyzing my contracts with the contractor and lender, XXXX XXXX XXXX, and state and federal laws and regulations, and I strongly believe I have solid, documented evidence of : Collusion/mortgage fraud between the original and current lender, contractor and loan consultant, and More than 30 distinct violations of XXXX FHA XXXX ( k ) Policy Requirements by the lender, servicer, loan consultant, and contractor, and Breach of fiduciary duty by the renovation escrow account administrators, and Breach of contract, and Multiple instances of non-compliance with federal and state laws and regulations, including the False Claims Act, XXXX XXXX XXXX Practices, and Misappropriation of Property Further details and supporting evidence are included in the attachments. 

Thank you in advance for your assistance with this ongoing issue. 

Regards, XXXX XXXX