Consumer complaint received 2023-04-07
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Click n' Close, Inc. (FL)

My current mortgage company, Click n Close (FKA Mid America Mortgage) neglected to pay for my homeowners insurance policy out of my escrow account (although, the account showed the payments coming out). I found this out when I called the insurance company to make a claim after the hurricane. I have been in a 6-month long battle with them to get my home covered with the same level of coverage that I had. As of 3 weeks ago, I was told that they had secured a matching policy on my home  when I asked for a copy so that I could make the claim, they were unable to provide (because it didnt exist). 3 weeks later, they provided me with a copy of the same hazard policy that I have been telling them is not acceptable for the last 6 months. There is also a whole mess going on with a deferral vs. a forbearance. Per the attached recording, I very clearly called and requested a 3-month deferral where 3 payments are moved to the end of my mortgage. I found out in XXXX that they had placed a forbearance on my account and that 4 payments would be coming due on XXXX. Upon further discussion, I was told that, since the forbearance period had already occurred, that we could now get the deferral. At the very end of XXXX, I was notified that this deferral was rejected because there are unrepaired damages to my home from the hurricane (which have not been repaired due to their negligence in paying my insurance premium and then their ongoing delay in putting equivalent coverage on my home. At that time, they said we could do an extension while we continued to work everything out. 
Click n Close has continued to use bait and switch tactics throughout the last 6 months. I have 6 months worth of documented emails, letters, recordings that very clearly reflect their admittance of negligence and their continued abuse of power. I recently was told that a full coverage policy, matching my original policy, had been secured for my home. When I asked for a copy of the policy so that I could move forward with a claim, there was no response for weeks. At this time, Click n Closes lawyer stepped in and told me that I was only getting the hazard policy, that I have continued to reject. 
I have been working in a good faith effort with Click n Close for the last 6 months to resolve these issues, but it has become clear that they are going to continue to make this an impossible situation for me. I am currently in a home that has no coverage on any of my personal belongings, damage from the hurricane, and an increasing debt because of their deceitful practices with the deferral. They have also held on to my Flood insurance check because my account is in default, after I was told that my account was not in default and was given a disbursement agreement that clearly stated they would cash the check and send it back to me. 
I am hesitant to bring my account with them current because I do not want it to appear that I am agreeing to the forbearance (I do have the funds to bring the account current set aside and could easily do so). I do not want to submit a claim with the hazard policy because I do not want it to appear that I agree to accepting that policy either. My hands are tied, the hit to my credit with the forbearance is an attack. 
__________
Timeline:
	Notified of Flood insurance lapse due to non-payment XXXX XXXX
	Flood insurance reinstated once Click n Close made payment
	Confirmed that other policies were in place and roof was covered
	Payment significantly increased, determined that escrow assessment was done and insurance was included twice, payment refund issued
	Incorrect payment again, refund issued
	Incorrect payment for third time (post hurricane), refund issued
	Hurricane Ian  called to make insurance claim with home owners insurance, informed there was no payment made so insurance lapsed in XXXX
o	Escrow account reflects homeowners insurance premium payments, payments never received by XXXX XXXX (multiple letters and notices sent to mortgage company during this time)
o	Spent 5 weeks trying to connect with someone that would help me, no calls returned, no resolution
	Email sent to XXXX XXXX, owner of mortgage company  XXXX  instructed XXXX  to take over
	Request to have policy equal to (same coverage/cost) original homeowners policy  request met with Hazard policy that only covers building, higher cost, Click N Close only payee on policy (received subsequent email that they would cover any damage that would have fallen under original policy but that they could not issue it in a policy)
	4 months post hurricane, no equitable solution identified  suggested that Click N Close pay for damages directly and then take it up with their own liability insurance. 
	Deferral requested and issued (3 months payments moved to end of mortgage)
	Continued receipt of late payment notices, told to ignore
	Receipt of hand delivered late payment notification - Called and was told I was on a forbearance, not a deferral, that 4 payments would come due on XXXX. 
o	Request for call recording regarding deferral  not received to date
o	Click n Close insists on forbearance, not deferral  will not make right
	I have obtained a recording of the call with Click n Close where the deferral was agreed upon
o	Told that now that forbearance has been processed, can apply for formal deferral, will be approved
o	Last week of XXXX, notified that deferral was not approved due to damage to home during hurricane  must repair damages before deferral can be issued
o	Upon suggestion from Click n Close, extended forbearance so that repairs could be made and then deferral put in place
o	Flood insurance check issued with homeowner and click n close listed as payees. Instructed to sign check, send to click n close  per disbursement schedule, they would cash check and send back for repairs to be made. 
o	Check signed and sent to Click n Close in good faith  upon follow-up, was notified that they would be keeping the funds because account is past due (because of forbearance). 
	Upon questioning, XXXX supplied a DIFFERENT disbursement schedule from the one received via mail and downloaded from site which states they will keep funds (contradicting original schedule). 
	So  Cant get out of forbearance to deferral (which was original agreement, not forbearance) until repairs are made, cant make repairs until flood check is cashed and funds sent back, wont send back funds because account is past due because of forbearance, cant move from forbearance etc, etc, etcstuck in a loop. 
	Confirmation from XXXX XXXX on XXXX XXXX XXXX that I will have ongoing coverage equal to the coverage of the your insurance policy on your home until all necessary work has been completed
o	When asked for a copy of the above policy, none was provided
o	After multiple requests, a copy of the hazard policy was sent
	XXXX XXXX XXXX - New party assumes relationship from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX)
XXXX XXXX provides copy of deferral conversation recording. Recording validates my claim regarding deferral and not forbearance. 
o	In response to above finding, email was sent to XXXX  requesting a fair resolution ASAP: 
	The beginning of Fair Resolution (this list is not exhaustive and may continue to grow as more information is revealed): 
	Click n Close should pay me outright for my damages from the hurricane and then leverage their own liability insurance on the back-end due to their error. No coverage was on my house at the time of the hurricane, this is due 100% to their negligence. 
	Click n Close needs to provide me with a full coverage homeowners policy naming me, XXXX XXXX, as the payee immediately. Policy should match the policy that I had in place for the same cost. 
	Click n Close should be responsible for helping me to secure long term homeowners insurance once the repairs to my home are complete, again matching original policy. Should a similar policy/cost not be available, Click n Close should, for a period of time, be responsible for the difference in cost. 
	Click n Close needs to be held to the deferral agreement that was made over the phone post hurricane Ian (recording of call is available and clearly states that I requested a deferral). 6 payments should be shifted to the end of my mortgage, I will begin making regular payments again on XXXX. 
	I refuse to work with Click n Close anymore and insist that my mortgage be moved to a more reputable company. I have a relatively low interest rate on my home, Click n Close should pay me outright for the difference in cost of my current interest rate vs. new interest rate for the lifetime of my loan. 
	Click n Close needs to immediately release the funds that they are holding from my Flood Insurance to me and no longer needs to monitor the repairs to my home. 
	An audit should be done within Click n Close to determine if other homeowners are at risk of the same or similar situation due to negligence. Also, to determine where the funds showing as paid via an escrow account are ending up since it is obviously not always to the intended recipient.
	Click n Close should be held liable for XXXX XXXX XXXX XXXX, lost time at work. 
	In the event that long term medical issues or additional damages arise in the future as a result of mold/leakage/damages from hurricane, Click n Close should be held financially responsible for those damages. 
o	Response received from XXXX XXXX contradicting prior confirmations and statements:
From: XXXX XXXX  
Sent: XXXX XXXX XXXX XXXX XXXX XXXX
To: XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX   After providing you with a copy of the insurance declaration and the recording of a previous telephone call with a Click n Close agent, you responded by asking that you be named as the insured.  Please note, the insurance is a force placed policy.  Because it was acquired by Click n Close, then Click n Close is rightfully the insured.  We did contact XXXX  to explore the possibility of a policy addendum that might alleviate some of your concern of either lacking or losing coverage.  During a meeting with XXXX  to discuss your situation, however, a few things came to light:
 
1)	During an investigation of the property post-storm, the claims adjuster noted that the only damage found was for external wind damage.  Specifically, the adjuster reported wind damage to roof tiles, window shutters, screens, and an
exterior light. The interior inspection did not find evidence of any storm related damage. There were no damages to the insured individual unit.
2)	Thereafter, you were sent correspondence requesting a copy of your Covenants, Conditions, and Restrictions XXXXCC&Rs) for coverage review of any items the association does not cover.  
3)	To date, you have not supplied the documentation necessary to move forward.
 
We are happy to expedite delivery of this information on your behalf so XXXX can proceed with consideration of a claim.  Please provide at your earliest opportunity.
 Further, as was previously explained (and what you observed in listening to the recorded phone call), your loan was placed in forbearance.  As such, and unless other interim amounts have been tendered, your payment would not go toward the XXXX XXXX payment.  I have asked customer service to provide you with updated figures so you have a clear understanding of what amounts are outstanding.  
 Please let me know if you have any questions upon review of the updated figures.  In the interim, I will anticipate receipt of your CC&Rs. 
 Thank you.
	With regard to points XXXX: the claims adjuster came out before the entirety of the issue with the insurance was revealed. At this point in time, I was made to believe that they would be covering my house with the same level of coverage provided by my original insurance company. It came to light after the fact that a sub-par hazard policy with XXXX  as the payee was actually what they were putting on the house. This is not acceptable to me and the reason that I have not proceeded further with the claim. I do not want to give the impression that I accept this policy. 
	Also, the adjuster never went into the roof to check for mold/other damages and it would be reasonable to believe that any damages observed immediately after the hurricane have likely gotten worse during the 6 month delay. 
	Received amount due on account which included 4 inspection fees. Inspection documents contain falsified information. 
o	Any information in these documents stating that the exterior or interior of my house was inspected are false, per their own notes in the document. They state that no access was granted, then state that the inspection was completed without issue. They state that they looked in my windows and saw window coverings, interior furniture, personal items, appliances, yet all pictures provided are of the guard station, there are none provided of my house. The document then goes on to confirm again in the additional comments section that access was not granted. 
	Additional errors: The property is under HOA, however the inspection notes otherwise. The document states that my roof is asphalt shingle, it is tile. It reflects the market value of my home as XXXX, it is XXXX. In addition, my flood insurance check was not even received by you until XXXX, so I certainly do not trust the validity that an inspection was even attempted in December. It reflects no exterior work needed and per your very own email, the adjuster reported wind damage to roof tiles, window shutters, screens, and an exterior light...
	I did receive calls from customer service to schedule inspections, to which I replied that they should halt any inspection activity due to the unresolved issues with my case and the fact that it was not clear to me how things would be proceeding (no inspections were ever scheduled). 

Current Status: 
BACK TO THE START, no advancement in over 6 months. Now dealing with Lawyer who is back tracking on any progress made.
	Still no resolution to homeowners insurance policy. Need roof replacement and other damages repaired  unable to do so. 
	I should not be held to the limits and stipulations associated with a hazard policy given Click n Closes negligence. 
	House is currently only covered by hazard policy which is not equitable to policy held  should another disaster occur before repairs can be made and a different policy put into place, I am left with less than acceptable insurance. 
	Will likely be unable to secure a full coverage insurance policy in the future due to negligence of Click N Close. Suggested that it is their responsibility to find me equitable insurance and put that in place (cost/coverage match  Click N close not listed as Payee due to dishonesty, negligence, overall lack of reputability). 
	Currently living in a house with mold growing in cupboards and potentially walls/furniture  unable to repair, detrimental to health. 
	I refuse to remain with this mortgage company once these issues are settled, however, if I switch to a new bank, I will lose the current interest rate that I have. 
	Click n Close has noted the forbearance on me credit report inflicting further damage.
I have consulted with a lawyer and have been told that it would not benefit me to engage with a lawyer because I have real damages that will need to be paid for. It will put me at a disadvantage to have to pay for a lawyer out of any settlement  this would leave me with less funds than required for repairs (if I were suing an insurance company, the situation would be different, and the insurance company would have to pay for legal fees). 

Email sent to XXXX XXXX (XXXX)
Hello XXXX, 
My name is XXXX XXXX and I currently hold a mortgage with Click n Close (account: XXXX). I was impacted by hurricane Ian 3 weeks ago and sustained damage to both the inside and outside of my home (flooding, wind damage, etc..). My house is within XXXX XXXX of the XXXX XXXX XXXX and XXXX XXXX XXXX, my area was a direct hit. Following the hurricane, I called my insurance company to file a claim and was informed that they do not have a policy for me, that they had never received payment from my mortgage company/escrow, so they let my policy lapse back in XXXX. Understandably, I was shocked and immediately overcome with panic. I have seen what appears to be the payments coming out of my escrow account the whole time. My insurance agent forwarded me emails from them, requesting payment, with copies of the policy documents. After spending hours on the phone per day for the remainder of that week, going in a customer service circle, I finally was able to get someone on the phone that sounded like they would be able to help me. Since that time, I have not received one single call back regarding this. I have called and called, spent more hours on the phone being transferred from this person to that person and then back to the first person, I have requested call backs, I have requested to be escalated, I have begged for someone to just please help me  and here I am, three weeks later with mold growing in my walls, unable to submit a claim to FEMA because I have to be able to identify my insurance company on the claim, very late to the game with hiring contractors (which means I will need to sit with this for weeks/months before I will be able to get someone here to do the work), mentally and physically exhausted from the clean-up, traumatized by what Ive seen from the hurricane, waking up with panic attacks in my sleep, and absolutely no further along than I was 3 weeks ago.
I want to call out, I had a similar issue with my flood insurance back in XXXX (Click N Close didnt pay the premium and it had lapsed), luckily, we caught that, and we were able to have a check sent immediately and they were able to back-date the policy so I had no lapse in coverage. At that time, I asked if everything was all set with my homeowners policy and was told that it was. 
I was told that a forced policy would be put on my house, but that it would be the minimum coverage  this is unacceptable to me. Attached is the policy that I should have had on my home, I demand that the coverage I receive matches this. In addition, the insurance pay out checks need to go directly to me  in no way, based on my recent experience, do I believe Click N Close (with whomever their insurance company and whomever the escrow company is) is competent or responsive enough to make payments to my vendors in a reasonable manner (timely, correctly, etc..). This is my home and my life  I know that sounds histrionic, but my Mother was diagnosed with a XXXX XXXX XXXX not long ago which originated from XXXX XXXX, she has since had a XXXX XXXX XXXX  I take this very seriously. 
I also want to add that in XXXX I noticed that my mortgage payment (automate draft) had increased significantly. I called to speak with someone about that and was told that it was because they reassessed my escrow and my insurance premiums had changed. I asked to see the documentation, and upon reviewing, saw that my insurance was being counted twice! So, not only was it not being paid, but I was also being billed for it twice. At that time, they said that they would send a check to reimburse the difference and that it would be corrected going forward. Surprisingly, the payments were still incorrect for my next few drafts. In addition to all of that, my drafts were put on a deferral/forbearance due to the hurricane for 3 months. Surprisingly, a payment was still drafted out of my account last week, the automatic draft never got updated when the deferral was activated. As it stands today, I have spent (again) hours on the phone to get this resolved and have been reimbursed for all but the very first one, I am still owed for that incorrect draft. 
I know I am going ALL THE WAY up the chain by reaching out to you directly, I feel like I have no other choice, no one is helping me, no one will escalate my case, I have no visibility into what is going on  I need someone to fix this now. Secondary to all of this, you should know that the customer experience has been awful. I work for XXXX, in the customer experience world  managing change to ultimately ensure that our customers have the best experience possible, I know that this feedback would be impactful to our leadership team, I hope it is to you as well.
I thank you in advance for your time and consideration  
XXXX XXXX
Second Email sent to XXXX XXXX XXXX:
XXXX XXXX, 
You may remember that we communicated back in XXXX after my home was impacted by Hurricane Ian; as a reminder, upon calling my insurance company, I was notified that my policy had lapsed some months ago due to Click n Closes negligence in their fiduciary duty to pay my homeowners insurance premium out of my escrow account. I want to make you aware that, at nearly 5 months after the hurricane, there has been no equitable resolution to this issue  as a matter of fact, the issues continue to pile up. I am being met with dishonesty and proposals for resolution that are not acceptable. I have been more than willing to work with Click n Close to come to an agreeable path forward, but that does not seem to be happening as I am being met with one bait and switch issue after another and with proposed resolutions that benefit Click n Close while leaving me at a significant disadvantage. I should not have to be held to a hazard policy (with Click n Close listed as the only payee) with its stipulations, and limits. The fact is that there was no policy on my house at the time of the hurricane due to Click n Closes negligence. Due to a lack of reasonable action, I insist that Click n Close is liable for the repairs due to the negligence in paying my policy premium, should pay me out in full based on estimates, and then leverage your own insurance to recoup on your loss. I would also suggest that Click n Close is responsible for finding me a full insurance policy that matches the policy that I held and at the same rate (or less). Finding insurance in Florida after the storm will be nearly impossible and it is absolutely Click n Closes negligence that has put me in this position. I will not be able to find equitably insurance, especially not if I am put on a hazard policy to make a claim. I am very concerned that, at this time, there is only hazard insurance covering my house  again, this puts me at a significant level of risk should any other issues arise, which may require insurance intervention. I have also been unable to begin repairs to my home since the hurricane due to this ridiculous situation that I have been put in. I am left living in a home with mold growing in my cupboards, floors, and walls and have been sick for months. 
I am disgusted with how this issue is being handled. I have continued to act in good faith and have been met with dishonesty, incompetence, and a blanket disregard for your fiduciary duty as the holders of my mortgage/managers of my escrow. I have absolutely zero trust that your company will do the right thing at this point due to my dealings to date. I would like to schedule a call with you so that we can discuss an acceptable path forward. If we are unable to come to a path forward, I will proceed with additional action, that is not the route that I want to go, but it is becoming clear to me that I am being left with little choice. 
Thank you for your time, consideration, and prompt response. 
XXXX XXXX XXXX sent to FL Insurance Commissioner: 
I have been left in a unique situation after Hurricane Ian that I have been trying to resolve for months now but cannot seem to come to an agreement on. I am a homeowner in FL, my mortgage company Click N Close (formerly XXXX XXXX) is supposed to pay my insurance premium from my escrow account. Upon being hit by Hurricane Ian, I called my insurance company and was told that I do not have an active policy, that it had lapsed due to non-payment. The payments appeared to have been coming out of my escrow account and were just never reaching the insurance company. The insurance company sent them multiple requests for payment, only to receive no response. Important to note, this same issue occurred with my Flood insurance earlier in the year, I caught that at the time and was able to resolve the issue right away; at that time I also asked for confirmation that there were no issues with my other policies. Unfortunately, in the case of the homeowners insurance, it had been too long since the lapse in coverage and the insurance company was not willing to reinstate the policy. 
The mortgage company has admitted fault in this matter (after I had to reach out directly to the owner of the mortgage company, I had been stuck in a customer service loop for over a month). The owner put me in touch with someone in the escrow department. Their resolution offer is to back date a hazard policy on my house and to use that to cover any damages. Of course, this policy does not cover what my original policy covered and lists them as the only payee of the policy. The did provide an email to the effect that any additional damages, hurricane related, they would pay for outside of the policy. Ultimately, I am not OK with this resolution. As it stands, I currently have less than acceptable coverage of my property (hazard only) because I cannot get a new policy with the outstanding hurricane damage being in a state of disrepair. I do not want to make a hazard policy claim as that will negatively impact me and I believe cause me to not be able to find affordable coverage in the future. I also believe that it will be nearly impossible for me to get the same level of coverage that I had at the same cost due to this lapse in coverage and potentially having to make a hazard claim. 
I have spoken with a lawyer and understand that suing my mortgage company would not be the best path to go as I have real damages that need to be paid for, even if I were to win, I would end up at a deficit because I would have to pay the lawyer myself. 
I really do not know what to do  there is MUCH more to this story (multiple other mistakes made by the mortgage company) and I have documentation of everything. I know you arent the mortgage commissioner, but I need help to secure adequate coverage on my property immediately and I believe it should be at the cost of my mortgage company (I also think they should have to pay for my repairs out of pocket and then take it up with their own liability insurance to recoup their costs).
Any direction would be much appreciated  Im desperate to begin making the needed repairs on my home before we start the rainy/hurricane seasons again. 

3rd Email sent to XXXX XXXX XXXX XXXX, 
You should be aware of the practices that your team are leveraging as it relates to your clients. I have been met with contradictions and dishonesty at every single turn. This is disgusting, especially given the complete mess that Click n Close has caused me due to negligence in fiduciary duties. We are currently nearing 6 months post Hurricane Ian and still have no resolution to the below:
I am requesting your assistance to resolve the below issues immediately (NOTE: all email interactions are included in the body of this email should you wish to review in context):
	Homeowners Insurance Policy (I currently do not have a policy on my home due to Click n Closes negligence, should there be a catastrophe, I lose everything that I own):
o	Per XXXX  on XXXX XXXX: I personally contacted the insurer and received confirmation that you will have ongoing coverage equal to the coverage of your insurance policy on your home until all necessary work has been completed.  Please note, you will need to procure another insurance policy for your home immediately following completion. 
	Upon receipt of the above, I requested a copy of the declarations page that reflects me listed as the payee on it (as I was with my original insurance coverage that you are matching). I have yet to receive a copy of the insurance policy, I do not understand the delay if the policy is real and in place. 
	Disbursement of flood insurance:
o	I was mailed a disbursement letter that had very different language from what I am being held to regarding the release of my funds (attached you will find the disbursement schedule that was originally sent to me vs. the schedule that XXXX sent to me after keeping my funds). Per XXXX, my account is in default due to the forbearance; also, per XXXX (see screenshot below), my account is not in default because I have a forbearance in place. The letter that was sent to me was sent while the forbearance was already in place, so there is no excuse as to why the letter that I received would not be the disbursement schedule that I am being held to (Per the Disbursement Schedule and Procedure that was sent to me, upon receipt of the required documents, Click n Close will deposit the claim check and send me a check for XXXX XXXX of the total claim funds, or the claim funds minus my unpaid principal balance  whichever is greater). Given that the check was for less than XXXX, I insist the entire amount to be cashed and sent back payable to me ASAP based on the language in your Disbursement Schedule and Procedure. 
	Deferral vs. Forbearance:
o	I insist upon reviewing the recording of the call where the deferral (forbearance) was agreed upon. I hold fast that a deferral is what was agreed upon, and if this is the case, Click n Close should stand by that. If I did agree to a forbearance, then we will move forward from there. 
	To date, I have received zero response to my multiple requests to review the call. Review of this call will definitively settle this matter. 
	Account Status:
o	The forbearance (again, in dispute) period on my loan ends on XXXX XXXX  I need to know how to proceed based on XXXX cryptic email below. 
	My initial request (in response to XXXX  note that they were keeping my flood funds due to my account being in default, which, to be clear, I am disputing per the above): I would like confirmation that if I bring my house payments current and out of the forbearance (that should have been a deferral), that the remainder of the funds for my flood insurance will be released to me. I certainly do not want to assume, given the bait and switch with the disbursement schedule letters.