Consumer complaint received 2022-08-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC
State: NJ

Complaint narrative:
XX/XX/XXXX, my home at XXXX XXXX XXXX, XXXX NJ sustained a house fire. I am a struggling homeowner and single parent working 7 days per week in order to pay for the mortgage ( {$2300.00} per month at XXXX XXXX XXXX ) and pay for my current residence. 

XX/XX/XXXX, my home sustained a flood. 

I've been in constant communication with Fay Servicing regarding the repairs for the property and needing additional funds to continue the repairs. Unfortunately, Fay Servicing is withholding my insurance proceeds despite all my efforts to fix the home. In addition, Fay Servicing is non responsive to any/all requests for help which brings me to the Consumer Financial Protection Bureau for assistance. 

I received {$26000.00} for the demolition to the property per the payout from the insurance company. The funds were paid to the contractor when the demolition was completed which was XX/XX/XXXX. 

I called, called and called Fay Servicing for almost 1 year inquiring as to why I am unable to receive additional funds beyond the demolition proceeds to start the repairs to my property. I was told that there is a discrepancy with the terminated contractor ( see prior complaint via : CFPB ). Somehow, I received a check for {$17000.00} on XX/XX/XXXX. These funds were paid to the XXXX XXXX, XXXX XXXX for work that was previously completed to the property and also covered some of the materials for the interior framing and the replacement of the roof above the kitchen area. 

As of today, there are XXXX new XXXX windows, XXXX basement windows, XXXX XXXX doors and an XXXX sliding glass door installed. The kitchen roof has been replaced and all the interior framing has been completed. Architectural plans have been paid for, flood elevation certificate and land survey have been paid for. {$6700.00} in permitting has been paid for. 

My home is currently at 35 % complete and needs to be at 50 % complete in order to receive additional funds. I have failed XXXX inspections thus far. I erroneously requested an inspection in XX/XX/XXXX which I believe failed because the framing wasn't fully complete. I requested a reinspection XX/XX/XXXX once the framing was complete and to my surprise, I failed. Prior to the XX/XX/XXXX inspection, I was at 33 % complete. I don't understand how I can frame the entire interior of the house, replace the kitchen roof and only gain an additional 2 % complete bringing me from 33 % to 35 % complete. 

Not one time has Fay Servicing informed me as to what needed to be completed in order to pass an inspection after communicating with them over 1.5 years now. XX/XX/XXXX during the inspection, I had a conversation with the inspector to whom informed me that in addition to all the work already completed as indicated above, I also need to have the HVAC ( not part of the fire claim ), XXXX, insulation and sheet rock completed to reach 50 % complete according to Fay Servicing. 

I am unsure how that is possible? How can I rebuild my home with all that Fay Servicing requires with only {$17000.00}? Fay Servicing has only released {$17000.00} for repairs to date for the fire claim. The {$26000.00} was paid to XXXX XXXX for the demolition, not the repairs. The {$26000.00} should not be counted as part of the XXXX release of funds for repairs, it was not allocated for repairs, it was used for demolition ; completely separate. 

Because Fay Servicing did not inform me of what needed to be completed to bring me to 50 % complete, I assumed all the above mentioned repairs was well above 50 % therefore the general contractors continued to work in the house as an effort to get me to the 50 % in order to pass the inspection. Unfortunately, there is a balance due to the general contactor XXXX XXXX XXXX ) for the work that they completed. This work is approximately {$40000.00}. 

I received a check for {$15000.00} for the XXXX from the flood claim but, I was told that the XXXX installation will not count towards the fire claim although the inspector told me that the XXXX needed to be installed as part of the fire claim. There is obviously confusion as to what gets paid for what claim. HVAC is part of the flood claim and should not be a required repair for the fire claim. 

I am not in a position to fund this project. I should not have to, that is why I have insurance and the insurance money held in escrow. 

The is currently a balance due to the XXXX XXXX for the work completed. If they are not paid, they will put a lien on the property. In addition, they will not continue to do any additional work without payment therefore, the house will sit until this is resolved. Nor will I have the ability to receive the additional proceeds from the insurance company. 

Fay Servicing sets their consumers up for failure. This is ruining my life and adding unnecessary stress and financial distress. Failure is not an option for me. I need additional funds to move forward to get the electric and sheet rock installed. I am hoping this can be resolved ASAP.

Company response to consumer: Closed with explanation