Consumer complaint received 2025-06-17 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Guild Holdings Company
State: TX

Complaint narrative:
Complaint Type : Mortgage / Escrow / Insurance Mismanagement Servicer : Guild Mortgage Company XXXX # XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX Loan Number : XXXX Property Address : XXXX XXXX XXXX XXXX XXXX, TX XXXX Complaint Summary : I am filing this complaint due to a serious failure by my mortgage servicer to fulfill their escrow responsibilities, which directly resulted in significant property damage and financial hardship following a FEMA declared disaster. 

Despite having an active escrow account, my mortgage servicer failed to pay my homeowners insurance premium in a timely manner. I was unaware that my policy had lapsed until it was too late to reinstate it. As a result, when a major storm ( FEMA-level disaster ) struck my area in XX/XX/XXXX, I was left with no insurance coverage and unable to file a claim. 

This lapse occurred because the servicer did not pay the insurance premium out of escrow, which I had relied on them to do. I did not receive sufficient advance notice or warning that the policy had lapsed due to non-payment, nor was I informed that the escrow account was not being managed properly. I only discovered this after the storm had already caused severe damage to my roof, HVAC system, and interior ceilings. 

I later learned that my escrow account had not been properly funded or managed, and no effort was made by the servicer to secure force-placed insurance despite this being a standard practice that protects both the borrower and the lenders interest. I was not under foreclosure at the time, and the mortgage company still held a substantial financial stake in the property, yet they allowed the home to remain uninsured in a high-risk climate zone during storm season. 

Additional Event That Compounded the Harm : Approximately five to six months after the storm, and still under heavy financial strain, a second major disaster occurred. The city water department turned the water on for a new tenant at my property without the tenant being home, and without checking the meter. This resulted in a massive flood in my duplex, damaging both units.

While this event was not the fault of Guild Mortgage, the financial damage it caused would have been survivable had I not already been in crisis mode due to Guilds earlier negligence. Their failure to maintain insurance left me exposed and financially crippled so when the flood happened, I had no buffer, no safety net, no resources left to deal with it.

To make matters worse, I learned I couldnt sue the city because they are protected by sovereign immunity so again, I had no recourse, and no coverage, and I was left trying to patch together repairs on two units from two separate events that should have been covered by insurance. 


As of XXXX : lost tenants, incurred eviction costs, lost rental income, and sank deeper into hardship.

Ive had to fight off foreclosure while paying both rent and mortgage.

Ive worked two jobs, borrowed money, and juggled court cases just to survive.

My home remains damaged, and I still owe for repairs that should have been covered by insurance insurance Guild was required to pay for and failed to.

Guild Mortgage violated its duty to manage escrow funds responsibly. They failed to act on multiple insurer warnings, left me exposed, and caused a chain of events that destroyed my financial stability.

Even if they claim a missed payment occurred, they still had a duty to protect their own collateral by maintaining insurance and had every opportunity to pay or alert me.

I am submitting this complaint more than a year after the event because I have only recently been able to piece together what happened and gain clarity. I had no idea this type of negligence could even be reported until now. Please help me receive fair review and redress.

Company response to consumer: Closed with explanation