Consumer complaint received 2016-03-26
Product: Mortgage — FHA mortgage
Issue: Application, originator, mortgage broker — 
Company: PNC Bank N.A. (OH)

XX/XX/2013 my family home burned down. PNC Mortgage held insurance money totaling the current value of the loan. I informed PNC that I would be rebuilding my home and that I was acting as the general XXXX. I provided the following information to PNC demolition permit, building permit, blue prints, a letter stating my intentions, signed contracts from the XXXX licensed contractors as well as pictures of the house showing completion of the framing and such. I had additional insurance money on top of what PNC was holding. I used this money to get the foundation, framing, windows, rough plumbing as well as the rough mechanicals done. After I exhausted my insurance money I then completed the paperwork for PNC and requested money to keep the build moving foreword. Toward the end of the build PNC contacted me and told me that if I was XXXX % done with the house they wanted to send me the remaining balance in the account and close it. She stated that the invoices i sent up for reimbursement yesterday totaling {$24000.00} dollars was not going to be sent out to me until the inspector came out. I stated that I did not send any invoices up yesterday, I sent them up last month and already received the check. She stated " that damm department ''. she asked me to set a date for the inspector and we agreed to two weeks from that call. When the inspector came out he asked me if this was ( address ) and I said yes. He shook his head and seamed confused. I asked him what was wrong he said I dont know how to do the inspection. I asked why and he replied PNC sent him out here with a XXXX line item repair list and he showed it to me and it was the insurance adjusters repair list from the old house and he did not know how to do it because that house no longer exist. He called his boss and his boss told him he had to do it. I called the bank and PNC said that is how they do it. I replied how can you inspect something that does not exist. The old house is gone and the new one is totally different. He did the best he could and turned the inspection in. PNC notified me that because I was not XXXX % done with the house and that they sent XXXX % of the funds based on the insurance adjusters cost for repairs to the old house they would not be sending me any more money. eventually I would get it a little at a time. However this caused difficulties financially for my family. It caused use to live in temporary housing longer. It caused me to get back to work 6 months latter than planed and we were trying to live and build a house on my wifes pay. The project slowed down and it is still not complete. We are able to live in it. I have several questions was PNC allowed to use the repair list and the repair cost for the old house when it no longer existed and why then did PNC also use the condition of the new house as part of their reasoning for withholding money. It seams to me they should have inspected the new house as a new house. Pnc was well aware that the burned house was torn down and a new one was built. My complaint is that PNC used the repair list for the old house as well as the new house conditions to keep the insurance money as long as they could. key points 1. Why was the PNC representative upset about the other department sending me the {$24000.00}. 2. how could PNC ( or any one ) inspect a house that does not exist. 3. why did they use the repair cost for the old house in determining the XXXX % of the funds they already sent out. when the new house is valued at {$320.00} 4. PNC inspected the house that did not exist then how could PNC use the condition of the new house as part of the inspection. witch is it the old or the new.