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ComplaintsforFinance of America Reverse, LLC
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Complaint Details
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Initial Complaint
04/27/2022
- Complaint Type:
- Service or Repair Issues
- Status:
- Answered
I applied for a reverse mortgage refinance with Finance of America Reverse aka FAR on 10.01.21 with ***********. The intention was to obtain a lower interest rate and cash. FAR took over from my original loan holder ******. This new company has pushed this process beyond the 120-day interest rate allotted time by burying my lending company and myself in duplicated and unnecessary paperwork. At the onset, initial contact date 09.30.21, I was assured my refinance would take between 30 to 65 days because FAR held my current Reverse Mortgage. After deciding not to go with a FAR in-house agent (************) I chose to go with *********** (****************). Called Mr. ***** to notify him of this decision and he promptly hung up on me. From that time to now it has been a struggle to accomplish anything with FAR. As a result of this almost 6-month ordeal, my finances are depleted and my credit history is all but destroyed. After COVID-19 and evacuation from my home, last summer due to the Caldor fire all my original finances were gone thus the reason for this refinance. As of this filing, FAR's one constant is that we are past 120 days so the interest rate is higher. FAR requested a second appraisal, numerous verifications regarding banking, SS other income documentation, and many, many more delaying taticts. Once again this is a company that already holds a loan on my house.Business response
05/24/2022
Business Response /* (1000, 5, 2022/05/04) */ Finance of America Reverse LLC (FAR) takes its customer service obligations seriously. We regret that you experienced unsatisfactory customer service and delays with this loan that ultimately did not close. This is a HECM to HECM refinance that was brokered to FAR. There are a few factors that contributed to the timeframe for this loan. During this time, FAR kept the borrower's broker up to date on status and conditions. For example, HUD required a second appraisal. Whether a second appraisal is required is at the discretion of HUD, and not FAR. After the second appraisal was received, FAR requested a reconsideration of the value from the appraisal management company. In addition, the appraisal required the crawl space to be separately inspected, but the inspection was delayed due to the weather causing accessibility issues. With respect to financial and income information, FAR is required to collect this information from applicants as part of the HUD-required financial assessment test. Ultimately, the loan was short to close due to several factors and did not meet a HUD-required borrower benefit test required for HECM-to-HECM refinances. We understand that the borrower is working with their broker on a new loan application.Initial Complaint
02/02/2022
- Complaint Type:
- Service or Repair Issues
- Status:
- Answered
Hi My name is **************** and I'm sorry that this homeowners claim has come to this point. On 5/5/2021 our family experienced a back to back fires and a septic backup in our home. We had ******* insurance who did everything they could it was middle of summer no air-conditioning my home was about 130degres part of us. Had to go to hotels and my dog was so sick he almost died we were on generator for 31/2 months. Our electricity finally was restored my home was unlivable and my appliances all started failing we turned the insurance checks that ******* insurance company issued us for repairs in to reverse mortgage and did everything we were asked waited for them to sign off on checks and here we are broken windows no heating and no appliances to sevive and back up sewage in our home . We tried to pay people to help but ran out of money to this date they will not pay us. Our Money for repairs they told us they were afraid we would take money and runBusiness response
02/23/2022
Business Response /* (1000, 5, 2022/02/10) */ Finance of America Reverse LLC ("FAR") apologizes for the hardship and experience that the complainant has experienced. FAR will send a separate response to the complainant. In July 2021, FAR received the endorsed loss draft. In November 2021, the complainant informed FAR that her contractor had not done any work and that she engaged a new contractor. On February 7, 2022, FAR sent a check to the complainant and their contractor for the work completed. The complainant appears to claim that FAR would not release the insurance loss funds for appliances. FAR reviewed the Insurance Adjuster Worksheet and determined that the insurance loss check from the insurance company does not include any funds for appliances. If the complainant's homeowner's policy covers appliances, then the insurer would typically send a separate check to the complainant without the lender as a payee for those funds, as the mortgage does not encumber the complainant's personal belongings.Initial Complaint
01/11/2022
- Complaint Type:
- Service or Repair Issues
- Status:
- Answered
I went under contract to purchase a home on 10/24/2021. The appraisal came in good, and then they started working. Our initial closing date was 12/10/2021. They said they needed 2 weeks once the appraisal came in, which arrived on 12/08/2021 so we extended to 12/22/2021. THEN we were told, the day we were supposed to close, that they would require a SECOND appraisal. This was done within a week and returned on 12/30 and we were told it was accepted "AS IS". They gave us another list of conditions which were all returned by end of day on 12/30/21. Then we were told that the closing would take place on 01/07/2022. At this point we'd already had to reschedule movers MULTIPLE times, and the folks purchasing my home had already closed on their property and needed to move in. So the sellers allowed me to move in early with the expectation of closing 01/07. ALL WEEK we waited for updates, with no responses and no answers and no reasoning. Finally, on the DAY WE WERE SUPPOSED TO CLOSE AT 4PM, they came back with a new list of demands and conditions. Of course this was on a Friday. We had all of the conditions submitted on Monday, and now we HAVE TO CLOSE by tomorrow or I'm going to have to pay the sellers rent, in addition to the additional appraisals and everything else I've had to deal with. Why can they not just give the clear to close now that they've gotten all of their demands? This has been incredibly stressful and has caused me so much grief, if I'd known how difficult this company was going to be I certainly would have thought twice. These people know they hold all the power once you're past a certain point and have zero concerns about the well being or cares of their clients.Business response
02/01/2022
Business Response /* (1000, 5, 2022/01/20) */ Finance of America Reverse LLC (FAR) takes its customer service obligations seriously. The loan at issue is an FHA-insured Home Equity Conversion Mortgage that was submitted to FAR for underwriting on 12/16/21. FHA performs a risk assessment for appraisals submitted for new HEMC originations, and in some circumstances FHA will require a second appraisal. Our records indicate that this loan was been closed and funded on 1/13/22.Initial Complaint
11/15/2021
- Complaint Type:
- Billing Issues
- Status:
- Answered
My mother died and had a reverse mortgage through Finance Of America reverse mortgage out of Lansing Michigan. They gave me one US mail notice that the property would go into foreclosure unless I took action. I followed their instructions after calling their 800 number they instructed me to email them that probate was held up in the courts due to Covid and it was taking a longer time than planned. I told them I could not apply for a refinance to pay off the reverse mortgage until probate was settled. They instructed me to email them that it was held up in the courts due to Covid and then never bother responding to my email. They never sent me any further documentation that they would proceed with foreclosure. The forclosure went to court and was filed October 20, 2021. I had obtained a ****** mortgage to pay off the balance and it was paid on October 21. Since they never gave me a second notice that they were proceeding with foreclosure I should not have to pay the attorneys fees where they forced me to pay $1530. I only learned that I owed attorneys fees when I called their 800 number to make sure they received the payoff of the balance. They sent me no notification that they would charge me $1530 attorney fees. They told me I had immediately get to the bank and do a wire transfer for $1530 by 3 PM East Coast time the day after they were paid off in full. My attorney says I never should have had to pay their attorney fees of $1530. I want my money back.Business response
01/11/2022
Business Response /* (1000, 8, 2021/11/24) */ Finance of America Reverse LLC ("FAR") referred the loan in question to foreclosure on August 10, 2021. Its counsel filed a foreclosure action on October 20, 2021, before FAR received the payoff funds. Therefore FAR respectfully declines to refund the attorney's fees that it incurred in connection with the foreclosure action. FAR sent a separate detailed response to the complainant. Consumer Response /* (3000, 10, 2021/11/28) */ (The consumer indicated he/she DID NOT accept the response from the business.) The only documentation Finance Of America sent me was received August 12 and on that same day I called up Finance Of America to tell them that my mothers estate was not yet settled in the courts the courts were held up due to Covid and Finance Of America instructed me to send them an email explaining that probate was held up in the courts due to Covid. I sent that email multiple times. The response email generated states at Finance Of America will get back to you in 10 to 15 business days but they never got back to me. They did not follow up on their end. I followed their instructions to stop the foreclosure process and they did not respond to me. No further documentation was sent by Finance Of America to me. I received monthly statements on a regular pieces showing the outstanding balance and nowhere did it say anything about going into foreclosure. Finance Of America supposedly sent a notice to my mortgage company ****** mortgage that when ****** mortgage contacted Finance Of America to get a payoff quote at that time they told ****** mortgage they had however many days to get the mortgage paid off. Finance Of America never sent me the consumer any notice that I had a certain number of days to get the mortgage paid off they sent that correspondence to ****** mortgage they did not send that correspondence to me! Finance Of America did not send me proper notice, or proper documentation stating they were going to foreclose on the property. I followed their instructions that I was given from their 800 number to send the email stating probate was held up in the courts due to Covid and they never responded they lead me to believe they were issuing me a 90 day extension as long as I sent them the email with the information that probate was held up in the courts. Finance Of America should check their phone records under my account to see the phone calls that I made and the documentation that I called and responded to the one and only letter from August 12. They should see that their customer service rep told me to send an email and explain probate was held up in the courts due to Covid in order to stop the closure process from proceeding forward. I should not have been charged attorneys fees of $1530. I reviewed this whole case with my attorney and she said I should not have had to pay the $1530. She also sent them correspondence via email with the documents they requested every step of the way. Look in detail at the phone calls I made the emails I said and the emails my attorney sent. It all should be documented under my account. It is evidence that Finance Of America did not send me the proper correspondence to alert me that foreclosure was proceeding. I want the attorneys fees refunded back to me. (please see attached) Business Response /* (4000, 12, 2021/12/07) */ Finance of America Reverse LLC ("FAR") incurred legal expenses as a result of taking certain preliminary foreclosure actions in order to meet the HUD timeline requirements. FAR is therefore entitled to recover those expenses through the payoff. The complainant paid the loan in full before the legally required foreclosure notices were required to be sent. A detailed response was sent to the complainant. We consider this matter closed.
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Customer Complaints Summary
21 total complaints in the last 3 years.
9 complaints closed in the last 12 months.