Consumer complaint received 2019-11-03
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: The J. G. Wentworth Company (PA)

Following an extensive water damage event at my residence ( XX/XX/2018 ), JG Wentworth ( mortgagee ) has been holding Hazard Insurance claim funds in restricted escrow. They have sent me notice that they require me to pay 75 % of upfront repairs from personal funds and that I would only be reimbursed pending an inspection of the property and assessment of repairs.

1 ) I do not have the personal funds to cover 75 % of the damages to the property for an unknown, undisclosed period of time. I have explained this to the mortgagee.

2 ) Since the force-placed hazard insurance has inadequately assessed damages, in order to save costs, I requested that I personally perform certain functions in the repair, and contract Home depot to replace carpeting, and personally make certain other repairs. JG Wentworth denied my request to contract the work personally. They refused to disburse funds. Again requiring me to pay 75 % of repairs upfront from personal funds. I do not have the funds.

3 ) The home had extensive water damage. Since mortgagee is not willing to disburse funds to have the home repaired, and because I personally can not afford to cover 75 % of the expenses up front, I have been forced to live in a home that has been in disrepair for the past 1 year and 4 months. 

I have personally had to labor to remove wet carpeting from entire home - about 1000 sq ft of carpeting. I have had to pay for garbage removal ( {$1000.00} ). I have removed all saturated drywall and ventilated walls that were impacted. I have labored in order to prevent further damage to the home - something the mortgagee has disregarded. My current living conditions have caused significant personal distress and has impacted my personal health and wellbeing. 

The mortgagee has now informed they have sold my loan without resolving the issue with the insurance claim and without allowing for the repair of damages to the security for the loan. They have further shut down all communication on the matter and have referred me to the new lender ( loan has yet to transfer ).

I am now considering all courses of action in order to have this situation resolved. Since the mortgagee also improperly obtained force-placed Hazard insurance and induced the cancellation of my personal homeowner 's insurance ( by providing false information to previous insurer ), I can not recoup the significant loss to my personal property. 

I would refer the mortgagee to HUD mortgagee letter 2012-19. Not only has the mortgagee broken federal code regarding improper force-placed insurance practices, but the mortgagee is also applying impractical, unethical, and abusive policies with regard to their insurance claims procedure. 

I will continue to contact the appropriate parties, and will report the situation to all relevant regulatory agencies until this situation is resolved. I look forward to your adequate response to this complaint. I will be in contact through this channel, and others, in order to seek resolution of this completely unacceptable situation.