Consumer complaint received 2018-09-19 00:00:00
Product: Mortgage — Reverse mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc.
State: CA

Complaint narrative:
My house is on a reverse mortgage with XXXX XXXX XXXX. The house caught fire and burned down to the subflooring. I filed a claim with my insurance company XXXX XXXX XXXX XXXX XXXX. My claim handler is XXXX XXXX with XXXX XXXX XXXX XXXX. Mr. XXXX has sent the following checks to me in order for me to sign and forward to XXXX XXXX : XX/XX/XXXX in the amount of {$310000.00} XX/XX/XXXX in the amount of {$17000.00} and XX/XX/XXXX in the amount of {$10000.00} The total of these three payments is {$330000.00}. 
These checks were all forwarded to XXXX XXXX within one day of my receiving them. 

My XXXX has billed the mortgage company for : Demolition on XX/XX/XXXX in the amount of {$40000.00} and received payment of {$20000.00} on XX/XX/XXXX. On XX/XX/XXXX, after talking to XXXX ( customer service rep ) for over an hour I was told they would not pay anything until they received permits and drawings, she finally transferred me to XXXX ( the supervisor ) who said I needed to sign an affidavit and get an inspection. XXXX said the remaining balance would be paid after the inspection. The inspection was originally scheduled for XX/XX/XXXX and the inspector never showed up. The mortgage company was contacted several times regarding the short payment. Each time, I reached a different person and was told something different each time. When I asked repeatedly, on numerous calls, to talk again to a supervisor, I was told there was no supervisor available. On XX/XX/XXXX, I called and talked to XXXX. He told me that XXXX XXXX   would be sending me a check for {$79000.00} and I could make the payments out of these funds. XXXX told me that all they needed was a bid and they would pay my contractor and that no permits or plans were needed. 

On XX/XX/XXXX, I talked to XXXX, who said that the inspector would be here on XX/XX/XXXX. When the inspector finally showed up, he drove around the house and I had to run out and stop him from leaving. The inspector asked me what he supposed to inspect. I told him demolition and debris removal. He asked me how much of the demo and debris removal was done and I told him 100 %. He stated that he thought he was there to inspect how much of the house was completed. My contractor then received a check on XX/XX/XXXX for {$13000.00}, which left a balance of {$6300.00}. More calls and the balance of the invoice was paid received by the contractor on XX/XX/XXXX. 

My contractor also billed XXXX XXXX for running electrical to a temporary residence and replacing a new power pole and sub-panel, because the old ones were damaged in the fire. This invoice was also dated XX/XX/XXXX. After numerous calls, they finally paid this invoice on XX/XX/XXXX. 

On XX/XX/XXXX, my contractor billed XXXX XXXX for the drafting and engineering charges, based on bids they had received. The amount of this bill was {$13000.00}. Because payments were not received on prior invoices, my contractor would not pay out additional funds to the designer and engineer. Because of this, the original engineer was unavailable for my house and we had to go with a more expensive engineer. The contractor sent a revised bill to Champion Mortgage on XX/XX/XXXX. To date no payment has been received for this invoice. The contractor 's office called to follow up with Champion Mortgage on this invoice and was told the insurance company had not approved payment of the invoice. The contractor 's office then contacted XXXX XXXX at XXXX XXXX XXXX XXXX XXXX and was told by him that the approval of the original invoice had been submitted to XXXX XXXX on XX/XX/XXXX via email. At that time the contractor 's accountant and Mr. XXXX ( on a 3-way call ), talked to XXXX at XXXX XXXX. XXXX asked for the number they were calling from ( in case they were disconnected ) and it was provided to her. After being put on a brief three minute hold numerous times for approximately an hour, the call was disconnected by XXXX. No return call was received. This bill has still not been paid. XXXX XXXX has not responded to emails sent my my contractor 's office either. 

On XX/XX/XXXX, I returned XXXX 's call. I told her that the drafting and engineering bill still had not been paid. She told me that I needed an inspection. I informed her that the drafting and engineering were for blueprints and plans and how would they be inspected. She didn't have an answer for me and said she would call my contractor. My contractor assures me, this call never happened. 

In summation, XXXX XXXX has received {$330000.00} from the insurance company to rebuild my house ( most of it received in XX/XX/XXXX ). They have paid {$50000.00} to my contractor, leaving an approved bill of {$21000.00} unpaid. They are holding {$280000.00} in monies from the insurance company and construction can not proceed on my home until the design and engineering bill has been paid.

Company response to consumer: Closed with explanation