Consumer complaint received 2020-02-20
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: LAKEVIEW LOAN SERVICING, LLC (TX)

We purchased our forever home in XXXX, Texas on XX/XX/XXXX upon retirement from the United States XXXX ( XXXX XXXX ). Unfortunately, on XX/XX/XXXX our home was struck by lightning causing a fire. 

Our insurance company ( XXXX XXXX ) provided us the funds ( {$230000.00} ) to rebuild our home and we were instructed to forward the check to our mortgage company ( Lakeview/XXXX XXXX XXXX XXXX ) so the funds could be properly distributed based on the reconstruction phases. However, in XX/XX/XXXX we were informed by our General Contractor that Lakeview/XXXX XXXX XXXX XXXX had withheld funds ( breach of deed ) because our contractor was not licensed or bonded which is not a requirement in the state of Texas. We submitted 5 waivers ( XX/XX/XXXX-XX/XX/XXXX ) for this requirement thru the mortgage company ( Lakeview XXXX XXXX XXXX XXXX ) agents via phone and they were all denied. Meanwhile our home was exposed to the elements because the roof was not completed ( it did have a tarp ) due to the mortgage company withholding funds and causing additional damages to our home. 
On XX/XX/XXXX we called in a restoration team ( Cost {$10000.00} ) after we had a thunderstorm to ensure we were properly safeguarding the property. When we try to file a claim ( XX/XX/XXXX ) with XXXX XXXX they said the mortgage company failed to pay our insurance therefore they denied our claim. When we spoke to the mortgage company they said they didn't have a point of contact for the insurance company so they failed to pay and tried to blamed us despite them being responsible to pay for it through our escrow. They said we would have to wait for the Lenders Placed Insurance Policy to file a claim which would come into effect in XX/XX/XXXX. In late XX/XX/XXXX Lakeview XXXX XXXX XXXX XXXX recognized that they had made a mistake of requesting the license and bond requirement for our general contractor and they released funds to our initial contractor to pay ( {$39000.00} ) for the work he had done. Lakeview XXXX XXXX XXXX XXXX asked us to ask our general contractor if he would like to continue doing the work and provide a new assessment with the additional damages. Our general contractor declined to continue with the work due to the high stress and complications Lakeview XXXX XXXX XXXX had put him through. 

In the meantime Lakeview/XXXX XXXX XXXX XXXX asked us to find a new contractor ( XX/XX/XXXX ) and get an assessment on the additional damages. We contracted XXXX XXXX XXXX ( XX/XX/XXXX ) to do the assessment which we paid out of pocket ( {$4500.00} ) and we informed the Lakeview XXXX XXXX XXXX XXXX point of contact that the assessment would take 4-6 weeks due to the extent of the damages. XXXX XXXX XXXX  has finished the assessment ( XXXX XX/XX/XXXX ) and are standing by until we resolve the release of funds to cover all additional damages ). 

In late XX/XX/XXXX we were informed that the Lender Placed Insurance Policy was set up thru XXXX XXXX XXXX XXXX so we could file the claim for the additional damages. On XX/XX/XXXX we were informed that the claim thru XXXX XXXX XXXX XXXX was denied. We immediately contacted the Lakeview/XXXX XXXX XXXX XXXX ( still waiting for a returned phone call ), XXXX   XXXX XXXX XXXX ( advised that we should do a short sale or deed in lieu ), State/Local ( Texas/Leander ) Representatives and the Texas Department of Savings & Mortgage Lending ( provided them an update via phone & email still waiting for a response ). We considered filing complaints through the Consumer Financial Protection Bureau & XXXX XXXX XXXX this weekend since the Lakeview/XXXX XXXX XXXX XXXX point of contact has not contacted us back in regards to our latest phone call to inform them that the additional damage claim was denied. 

We have received USPS mail requesting that the new contractor sign the contract with the new estimates ( to include the additional damages caused by Lakeview XXXX XXXX XXXX XXXX withholding funds ), contractors waiver of lien, internal revenue -9 and copy of contractors license ( not a requirement in the state of Texas ) which we are ready to send to them. We have not sent the documents in because we have a few questions for them ( Lakeview XXXX XXXX XXXX XXXX ) to answer but they have not returned our call.