ComplaintsforHouseMax Funding, LLC

• Initial Complaint

  05/03/2023

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  Real estate appraisal completed and delivered to lender on 02/22/2023. I have requested payment 3 differnent times, but still has not received $550 for the appraisal completed.

• Initial Complaint

  09/15/2021

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I purchased a home with HouseMax Funding, LLC as the lender on July 22nd, 2021. The nature of the loan is for construction/rehab. The loan was originated for $179,000 with an 8.9% interest rate and a monthly payment amount of $1,341.01. The term of the loan is for 12 months. The amount of $47,000 for rehab expense is included in the $179k.In order to access the amount for the rehab I have to request draws for the loan through the HouseMax website. I receive an email confirming that the request has been processed. However, it takes weeks for me to receive a deposit. I have expressed that I have spent in excess of $20k worth of work and materials, but have yet to be reimbursed. The company is now claiming that they will not reimburse me unless I pay the interest payment. I have refused to pay the interest payment, because I should have been reimbursed prior to the due date of the loan. It is my suspicion that this company is prolonging the rehab time to collect more interest payments

  Business response

  09/27/2021

  Thankyou to the BBB for giving us a forum to reply to this concern.  We takeour borrower's satisfaction very seriously.  As a commercial lender wewill fund purchase money and a construction holdback to reimburse borrowers forwork that they have completed for their fix and flip projects.  During theunderwriting process, the borrower provides us with a scope of work and abudget to use for the draws.  We provide that borrower's scope of work andbudget to the 3rd party valuation company for them to determine the afterrepaired value.  We also use that scope of work and budget to create anexhibit to the loan docs that will detail how the construction funds are to bedisbursed.  The challenge with this loan started when the scope of workand budget was not accurate and there were items that the borrower wanted to bereimbursed for and they were not on the scope and budget. The borrower hadstarted some work to the project and was expecting to get reimbursed for moneythat was not detailed in our exhibit.  Per our term sheet that theborrower signed prior to the loan being funded, if there were to be any changesto the scope of work the borrower was to pay a $2,000.00 fee to have the scopeamended.  We waived that fee for the borrower as we know that capital istight on this project, and we wanted to be a good actor.   The backand forth with the borrower to get the draw amended added to the timeframe toget the draw funded.  We ultimately got the draw funded and the borrowercontinued with the work.  On a subsequent draw, the borrower requested adraw inspection and per the inspector she did not return the call immediatelyand when she did, she scheduled the inspector do come out 8 days later. This would ultimately be what caused the delay in the next draw.  The drawinspection came back and double checked that the draw was correct, and the drawwire went out on 9/14/2021.  This is longer that what it normally takes by3-4 days.  
  
   Theborrower has since ordered another draw and that was funded in less than 72hours. The challenge is that the borrower has not made their September 1st 2021 payment andtherefore the loan is in default. (Borrower made a payment on 9/14/21 - Loanis now performing.)
  
   Itis our investors policy that we are not to disburse draws on loans that arecurrently in default.  It is alleged that we are delaying the draw fundsso that we can collect additional interest.  
  Thiscould not be further from the truth.  We have called the borrower to offera refund of some interest in good faith however, she has not returned ourcalls.  The refund would be roughly 1 week of interest.  We are morethan happy to work with the borrower to get a resolution that works for bothparties, however she will need to call us back to make that happen. 

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