Complaint / review text:
Our home was destroyed by the El Reno tornado in 2013. We received a insurance check which was given to Midland Mortgage to hold while rebuilding our home. Midland Mortgage had a mortgage loan equal to approximately 43% of the insurance proceeds. We have followed Midland Mortgages instructions to the letter and they have consistently asked for the same information over and over, slow payed our contractor and even short payed the contractors monthly invoice. Finally I asked how they determine the amount they pay out on an invoice.
Midland Mortgage takes the percentage the inspector says is complete such as 60% completion and then takes 60% of the insurance proceeds. They problem is two fold. The builder is billing as costs are incurred, the insurance proceeds are not the total cost to rebuild as the insurance company holds back funds when they issue a check. My builders last request for funds was $92,000. Midland issues a check for approximately $20,000. Now my builder is upset and pressures us for the difference. Meanwhile, Midland Mortgage holds more than enough insurance funds to complete the construction of the home.
This process is totally wrong. What purpose does it serve unless Midland Mortgage is making money off the insurance proceeds?
I will never use this company again and advise anyone who can to refinance to a different mortgage company. WE had problems with the excess escrow funds also. It has taken them over a year to refund the excess escrow amount.
A final note: We have continued to pay our monthly mortgage payment timely to Midland Mortgage for over a year and a half on a house that doesn't exist.