Consumer complaint received 2016-01-13 00:00:00
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Ditech Financial LLC
State: WA

Complaint narrative:
On XXXX XXXX, XXXX trees fell on my house completely destroying the part of the house where I live. Since that time I have been homeless. My insurance company, XXXX XXXX, provided what I think will be enough money ( {$120000.00} ) to repair my house but all checks have required an endorsement by both myself and my mortgage company, Ditech Financial LLC. Ditech has cashed the checks but refuses to tell me if the money is held in escrow. I was able to borrow enough money to remove the trees ( {$12000.00} ) and the debris from my fallen house ( {$24000.00} ). I have sent the documentation to Ditech ( https : //www.ditech.com/ ) repeatedly. The insurance company provided checks to cover the completed work and has sent all required documentation at least 3 times. I have tried to supply all of the documentation requested by Ditech including contractor license numbers, XXXX forms and lien waivers ( some seemed to have been lost by Ditech and were never put in my Ditech file so they were sent two or three times ). They have told me that I have now submitted all required documentation but they do n't send the money. XXXX checks for materials were sent but they were made out to the wrong suppliers so they had to be returned. I have received multiple letters saying that my information is being sent to a bill collector. I have never been late on my mortgage in the XXXX years that I have owned the property. 

I am acting as my own XXXX because I was fully involved in the original construction of the house and there is not enough insurance money to hire a general contractor. With the intervention of the insurance adjuster, Ditech released {$10000.00} which does not even pay for the money that I had to borrow from family and friends to do the demolition and tree removal. My loan is a XXXX XXXX loan and as I understand the laws governing XXXX XXXX loans, this money needs to be in escrow and the interest earned sent to me at the completion of the claim. The mortgage is around {$140000.00} and the land alone excluding the house has a valuation of {$180000.00}. 

I have a XXXX XXXX loan and according to the following website, I believe that I an entitled to a disbursement of {$40000.00} plus the amount that I have already paid for the tree removal and the demolition. XXXX ). 

I am XXXX XXXX XXXX and have very limited income so that I am unable to get a loan to fix the property. I do not have money to hire a lawyer for litigation. Do you have any suggestions on how I can proceed if your office is not able to help me? I called the XXXX office and they offered no help except to tell me that I needed to deal directly with the mortgage company. When I said that I was talking to the mortgage without any effect, the XXXX representative hung up on me. I need help in getting money released so that I can repair my house.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation