Consumer complaint received 2025-12-23 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Rocket Mortgage, LLC
State: TN

Complaint narrative:
On XX/XX/XXXX my house located in XXXX, Indiana was unfortunately hit by a tornado causing damages to my property. The claim was covered through my homeowner 's insurance policy through XXXX XXXX. 

I conducted all repairs to the house that was caused by the tornado and XXXX XXXX issued a check totaling {$5200.00}. However for some reason XXXX XXXX had stated that there was a fence located on my property that was also damaged by the tornado. There was never a fence there since the mid XXXX with the only thing remaining are some posts. This was outside of the claim that I was making on the property. In addition, {$5200.00} itself would not be enough to cover the replacement of a fence, especially not the complete amount of damages. Additionally, the XXXX who gave an itemized repair list to Rocket Mortgage did not include the fencing. 

XXXX XXXX then sends over the check placing both myself and my mortgage company ( to whom this complaint is about ) Rocket Mortgage by XXXX. I sign the check and send it over to Rocket Mortgage. 

Rocket Mortgage then proceeds to retain the check. Since I was late once on a mortgage payment ( I used the wrong account to pay and didn't realize ) this puts me in a permanent restriction per their policy. XXXX had I not been late, they would have accepted pictures showing that the damages have been repaired, however because of this account restriction, I must have a inspection done by XXXX of their partner companies. Note that I was late AFTER the XXXX incident as the missed payment ( which I was NEVER notified about ) as it was for XXXX of XXXX, so should not have applied to the incident that took place in XXXX. 

Despite my objections, I complied. Keep in mind I am still out of pocket for all repairs, and Rocket Mortgage has not paid a dime towards my insurance policy, but is allowed to retain my money until they are satisfied. XXXX XXXX sent the check to me on XX/XX/XXXX where I immediately endorsed and forwarded to Rocket Mortgage. 

On XX/XX/XXXX I had provided all the required documentation including the XXXX 's report and the repair company 's information. The agent however was unable to locate the XXXX 's report and XXXX 's license that I had uploaded to their own portal. After being transferred I spoke to another agent who verified that they in fact received all the required information despite the previous agent telling me they didn't. She stated will reach out within XXXX business days to schedule the inspection, and the funds will be released within XXXX business days after the report is completed. 

On XX/XX/XXXX, I had received a {$1300.00} check as an initial payout as, according to Rocket, repairs were still being conducted. 

On XX/XX/XXXX I had submitted an insurance claim check to the mortgage company but I was still being asked to provide additional documents. The insurance loss department representative explained that the full insurance loss report was needed from the insurance company to show the itemized damages which I provided via email. I was informed it would take XXXX business days to review and process the remaining funds, and the customer would be contacted to schedule an inspection if ready for the remaining amount to be released. Again this was information I had already previously provided... 

It was also at this time that I was first notified that I would be required to have the inspection due to the delinquency of the account. 

I was notified that an inspection team was going to reach out XXXX business days from XX/XX/XXXX and I was able to get an inspection scheduled, however after XXXX attempts with the inspection team, no one arrived to conduct the inspection. Rocket never reached out again. Once I reached out to Rocket Mortgage again, they stated, once more, that I was missing documents that they already had. I, once again, had to notify them that they had all the required documentation that they were requesting. 

Into XXXX I am still having issues gathering the remaining money. 

They had scheduled an initial home inspection the week of XXXX, XXXX. I was put in contact with XXXX XXXX. However XXXX Properties failed to arrive and the inspection was rescheduled for the next week and was conducted properly. 

Shortly after the inspection was completed, I was FINALLY able to receive a second payout of another {$1300.00} which is still a shortfall of {$2600.00}. Since the math wasn't adding up, I contacted Rocket Mortgage... again.... 

This time however I felt I got somewhere. It was explained that XXXX incorrectly added the fence as an item that needed to be repaired, which left the repairs of the property at 75 %, allowing them to maintain the {$2600.00}. Once I explained ( again ) that the fence was not part of the claim, she spoke with another team and then gave me some great news ; Rocket was going to set the claim at 100 % and I will be receiving the check within XXXX business days.... 

I never received the check. 

The representative directly lied to me and never sent the check. Once I called them back on XX/XX/XXXX I was notified that, once again, my house was sitting at 75 % completed. This time however, I was ineffective at convincing them that the fencing was not included in the claim. 

Effectively at this point a couple assumptions can be made. Rocket is withholding the {$2600.00} on purpose, despite given clear proof, evidence, ect that the fence was NOT included in the claim. Furthermore, it appears that they are requesting, illegally, that improvements are to be made on the property instead of repairs. Unless those improvements are completed, they are going to withhold money that does not belong to them. 

This leads into a alleged " bad faith delay '' due to the following : Bad faith delay in the context of a mortgage servicer ( like Rocket Mortgage ) handling insurance proceeds refers to an unreasonable, unjustified, or intentional prolongation of withholding funds that should be released to the borrower. Mortgage contracts and federal law ( RESPA/Regulation X ) impose an implied covenant of good faith and fair dealing on servicers, meaning they must act honestly, fairly, and promptly when managing loss drafts. 

Lack of legitimate basis XXXX to hold funds despite clear evidence ( e.g., your proof that the fence never existed and no repair is needed ) or after repairs are verified/non-required. 

Unreasonable timeframe XXXX processes involve inspections and progress payments ( e.g., XXXX upfront, XXXX at 50 % completion, final at 100 % ), but delays should not be indefinite. Courts have found multi-year holds without justification to breach good faith, especially when the servicer ignores evidence or fails to communicate requirements clearly. 

Intentional or reckless conduct Refusing valid documentation, demanding unnecessary actions ( like building a nonexistent fence ), or stalling to earn interest on the funds ( " float '' ) or pressure XXXX. 

Violation of duties Failing to release funds promptly upon compliance with reasonable requirements, or not providing specific written reasons for denial

Company response to consumer: Closed with explanation