Consumer complaint received 2019-07-31
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: AmeriFirst Financial Corporation (MI)

On XX/XX/2019, we had a small fire in our home. The damage was enough that we are now living in temporary housing (that the insurance company is paying for). 1 month later, the insurance company issued an RCV check, which has both our names and our mortgage company on it, AmeriFirst. We signed the check, and sent it to the mortgage company, along with paperwork the mortgage company indicated it needed.

AmeriFirst delayed for a month and had no contact with us. I phoned to inquire about the delay and spoke to an employee named XXXX. She informed my that our filing was mising an Adjustor's Affidavit. I consulted with my contractor, who had assisted in assembling the initial paperwork, and we discovered that there was nothing missing. We informed XXXX  of this via email. She agreed that nothing was missing, and said that the check would be issued soon. In a phone call, I asked XXXX  to send the payment via 2-day mail, with tracking information, to which she assented.

Two weeks passed with no check arriving, no tracking information provided. On XXXX XXXX  I called to inquire, they informed me that the check had been mailed via standard US post and should arrive soon. It arrived 4 days later on XXXX  XXXX, postmarked the day after I most recently called.

During the call, I expressed my frustration to XXXX, and I made a post on social media about it. Shortly after, a man named XXXX XXXX  with AmeriFirst called to "make sure I was heard." During this phone call, he verbally informed me that our loan was slated to be sold to another bank at the end of July. It is my understanding that law requires a 60 day notice for such transfers, Mr. XXXX  claims that a letter was mailed. However, we had been monitoring our mail closely, since we were getting claim forms from the insurance, checks, etc. No notice was received.

On XXXX  XXXX, I instructed my contractor to request inspection to try and get a second draw from the claim money before the loan is transferred, so our project wouldn't be completely stopped in want of funds. She was able to get an inspection set up with a third-party inspector, who submitted his findings to AmeriFirst. AmeriFirst issued the second draft, which was received XXXX XXXX.

On XXXX  XXXX, 2019 I phoned and verbally requested Mr. XXXX  release the remainder of our insurance funds prior to the sale of my mortgage, to eliminate the delay that will be caused by re-establishing a claim with the new bank. He flatly refused to do so stating that it was  not possible. However, during our previous phone call on or around XXXX  XXXX, Mr. XXXX  offered to release our second draw without the inspection that AmeriFirst said was required, so it is reasonable to believe that the third check could feasibly be similarly released, but they will not do so with no justification offered.

Between the delay before receiving the first check and the delay that will be introduced by the sale of my loan to a third party, AmeriFirst has caused significant, unneccesary delay in the process of getting my family back in our home. It is affecting my family emotionally and financially to be displaced; AmeriFirst has significantly increased the duration of that displacement for no good cause. Furthermore, the property suffers deterioration from being unoccupied for longer than necessary, necesitating repair once we finally regain our home. The purpose of the mortgage company's involvement in the claim is to ensure the claim money is put into the repair of the asset, at this stage it is clear we are committed to repairing our home, have a contract obligating us to do so with a builder, and are actively engaged in the process of doing so. There is no reasonable explanation for the numerous delays AmeriFirst has already introduced, and they have further thrown the process into disorder and delay by transferring my claim money to a third party with whom I have no business relationship.