Consumer complaint received 2026-04-21 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: SELECT PORTFOLIO SERVICING, INC.
State: TX

Complaint narrative:
Delays described below in letter sent to mortgage co on XX/XX/XXXX with no follow up or release of funds have now resulted in the filing of a mechanics lien against us for failure to timely pay contractors. Select Portfolio Servicing , Inc . Attn : XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, UT XXXX Re : Account # XXXX Property Address : XXXX Fire Loss of XX/XX/year> Demand for Immediate Release of Remaining Insurance Proceeds Dear Sirs : On XX/XX/year>, our property sustained fire damage. At the time of the loss the outstanding principal balance was approximately {$72000.00} against a property valued at approximately {$370000.00}. Your financial risk on this loan has been, and remains, minimal. We provided your required notarized affidavit and the original damage estimate from the insurance company at the very beginning of this process, long before any funds were released. The insurance company issued its initial payment of {$43000.00} on XX/XX/year>. We endorsed and overnighted the check to XXXX. They held {$3100.00} and released {$40000.00} on XX/XX/year> a delay of 21 days. After the XX/XX/XXXX inspection confirmed 75 % completion, the withheld {$3100.00} was not released until XX/XX/XXXX an additional 11 days. On XX/XX/year> we forwarded the supplemental insurance check of {$21000.00}. You held the entire amount because the total proceeds then exceeded the original damage estimate. You did not notify us of the need for an updated damage assessment. We only learned of this requirement when we called for a status update. No one bothered to mention during that call than an additional final inspection would be required. In fact, we were assured the release would be expedited, that was XX/XX/XXXX. We provided the updated assessment which now shows total damages of approximately {$84000.00} less depreciation the same day. Despite receiving the funds and the updated documentation, you waited another 19 days until today, XX/XX/year>, to release only half ( {$10000.00} ). You continue to withhold the remaining {$10000.00} pending a final inspection. You never informed us that a final inspection would be required before full disbursement of the supplemental proceeds. I learned of this requirement only when I called today to question the partial release. Because of these repeated delays in both communicating requirements and disbursing funds that belong to us, we have been forced to personally fund the bulk of the repairs out of pocket. This has created a significant and unnecessary financial hardship. The only two remaining items from the prior inspection are cladding the fireplace inside and out and installing baseboard on either side. These are minor finishing items. A simple photograph should be more than sufficient to verify completion. If you insist on sending another inspector, you may do so at your expense, but you have no justification for continuing to hold our money in the meantime particularly given your minimal risk on this property. We have maintained proper insurance coverage and have been fully cooperative throughout this process. We did not expect your administrator to sit on our insurance proceeds while we bear the cost and delay of repairs. Demand Release the remaining {$10000.00} immediately and in full. Wire or overnight the funds so that we receive them no later than close of business on XX/XX/year>. Any further delay will be treated as bad-faith withholding of funds. We will immediately file complaints with the Consumer Financial Protection Bureau, the Texas Attorney Generals Consumer Protection Division, and pursue all available legal remedies, including recovery of any additional damages caused by your delay. Do not contact us again requesting more documentation, inspections, or any other conditions as a prerequisite for releasing funds that are already owed. Send the money now. SincerelyXXXX XXXX XXXX XXXXXXXX cc : XXXX

Company response to consumer: Closed with explanation