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Wells Fargo Property Loss


wells fargo holds insurance repair checks hostage

Complaint Rating:  69 % with 110 votes
69% 110
Contact information:
Wells Fargo
United States
Complaint: Wells Fargo Mortgage holds mortgagors insurance check hostage while needed repairs to roof go unaddressed due to mortgagors inability to pay for repairs without insurance funds.

9/1/2009 – Fed Ex with Mortgagors insurance check for $18, 263.73, Property Loss paperwork and a return Fed Ex Self Addressed envelope arrives at Wells Fargo Property Loss Address.

9/8/2009 11:35 AM – Liz Salemme from Wells Fargo Property Loss Department faxes mortgagors a copy of contractor form for additional mortgagors signature.

(Takes 4 business days for someone to look at paperwork and figure out that one of the mortgagors signatures is missing from the contractor form – there isn’t even room for two signatures on the form. Someone at Wells Fargo should be opening the packets and checking in all docs immediately and if something is missing the mortgagor should be notified within 24 hours.)

9/8/2009 11:45 AM – Mortgagor returns fax of contractor form with husband mortgagors signature to Liz Salemme. Fax is confirmed received and completes all requirements to begin processing.

(7 More business days to review paperwork and cut a check?)

9/16/2009 – Date on Check and letter to mortgagors and contractor.

9/21/2009 – Storm hits Atlanta with record rainfall – roof on mortgagors property still not fixed due to contractor waiting on funds from insurance proceeds sent to Wells Fargo 3 weeks prior. Additional damage may have occurred to roof during this period due to state of roof from prior incident – will not know until contractor can get back on roof to fix original repairs.


This is ridiculous that it should take us this long to get the money back for the repairs we need to make to our home. Your procedures need to be changed so that you return mortgagors insurance funds back to them in a more timely manner. It is ridiculous that you get to sit on the funds for this long. And we are outraged that we sent a Fed Ex envelope in with our paperwork and that it was NOT used. Your paperwork says that if you wish to send a self paid Fed Ex in that the check can be mailed back in that. This is a ROOF repair – funds are needed quickly to fix this! We can only hope that the second half of the funds will come back faster than the first.

Please look at your procedures and reduce the time that the money gets back into the mortgagors hands to fix the needed items at their properties. You are taking advantage of the insurance check funds of your mortgagors! This must stop!
Complaint comments Comments (72) Complaint country United States Complaint category Banks


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A  21st of Jun, 2010 by    +2 Votes
I have a similiar experience, I live in Oklahoma and we recently experienced massive hail damage. My insurance check for $16, 748.74 came made out to me and Wells Fargo. I called to inquire about how to get the check endorsed, I was told since it was over $15, 000 I had to endorse it and send it to Wells Fargo and they will disburse my funds in 3 increments. Fat chance, I told them if they couldnt trust me to get my roof repaired, the I certainly dont trust them to get my funds back to me, especially since I have read several complaints similiar to yours. I am sending the check back to the insurance company and they can do with it what they want. I will repair my own roof with funds from my 401k. I wonder what safeguards they have for claims of $15, 000 or less, or do they just not care about those properties are repaired. I guess in my case trust costs about $1, 748.74.
A  9th of Aug, 2010 by    +3 Votes
Wells Fargo's process is broken. I've been held hostage and repairs not done to the property because they have sat on an exception request now for 10 days. Every time I call they give me a different story and one of the last times I called the Resolution Specialist was not customer friendly and pretty much dismissed me by saying that she could not help me and that I had to wait... period. When you ask who to talk to escalate the situation they pretty much tell you that no one can help you and that you have to wait for the process (what process) to conclude. This is basically Wells Fargo making interest money on insurance dollars that basically do not belong to them but to the homeowners that has been paying their insurance premiums. My next call is to my lawyer or the Better Business Bureau. The process is absurd specially for repairs of less that 15, 000.
A  26th of Sep, 2010 by    +3 Votes
This is ridiculous to read that Wells Fargo has so many complaints like this, and the process isn't fixed! We just recently had a broken pipe and our entire 1st level flooded while we were on vacation. Our insurance was greati n expediting processing the claim and sending a check. But, then it came addressed to Wells Fargo too, and there is where the problem lies. We were told basically that we would have to have 100% of the workd complete, with only 2/3rd of the money. Plus, an inspection would have to be completed before the rest of the funds were dispersed. Also, we were requried to submit receipts for all of the funds dispersed before more could be released. Then, we were to endorse the check and send it through the USPS. Are you KIDDING? We overnighted it. 2 days later received a call from Wells Fargo, missed it and called back. Asked for Suzanne, when the person on the other line said they could help. I asked if I could provide more information through email, and was told they don't have email (what century do they live in?) Suzanne got in touch with my husband while I was speaking to someone who asked if we were ready for our 100% completion inspection. I lost it, are you kidding? You haven't given us any money yet! Suzanne told my husband that we qualify for some program where they would just endorse the check to us...oh gee, thanks, it's our money to begin with. Then, the check was FULLY endorsed, and sent through the US Mail without any safeguards that it wouldn't get lost. Finally got it 9 day later, completely endorsed and stating that they aren't accountable for any lost checks. I am SO FRUSTRATED, my house is in shambles, and Wells Fargo is holding our money hostage. We now have another check, that I don't want to have to do this again.
A  9th of Oct, 2010 by    +3 Votes
They are doing the exact same stuff to me holding my money hostage. It has been 2 yrs since my home was vandalized and I am still not able to live in my house. Wells Fargo has even want as far as changing inspection reports so money would not have to be released to me!!! Where is the US Government during all this, for-sure this has to be against the law!
A  3rd of Nov, 2010 by    +3 Votes
August 2010 we received a large check from our insurance company to pay for storm damage but it was also endorsed to our mortgage company- Wells Fargo. It is now November and we have only received 1 dispursement of 3 from the bank. The process is slow and inefficient. An inspector was to come to verify that the work had been completed but ironically it took a month to get the inspector to show up. Once this was finally done, no checks were sent because of a missing signature but no one bothered to notify us that the signature was missing. When the first check finally showed up it was also made out to our contractor and had to be sent back. Why would our contractor wait for 3 months to be paid? Fortunately we had the funds to pay upfront, if not, we would still be without a roof. Something must be done to stop Wells Fargo from holding insurance funds hostage.
A  6th of Dec, 2010 by    +3 Votes
In October 2010, I received a check from USAA (insurance company) to pay for hail damage but it was also endorsed to Wells Fargo. It is now December and we have only received 1 disbursement check. Per Wells Fargo claims process when work is 50% complete they require an inspection, at their cost before a 2nd disbursement is released. An inspector came out to verify that 50% of work had been completed on November 29th and agreed that 60% of the work had been completed. The inspector had me sign the form and said it should be to Wells Fargo within 48hrs. The inspector submitted the report to NFR, who in turn rejected the inspection due to snow on the roof. Go figure! Snow on the roof in Minnesota during the winter! NFR is the 3rd party vendor that Wells Fargo contracts out to complete inspections, the NFR subcontracts out the inspections to local inspectors. I called Wells Fargo on December 3rd to inquire about the 2nd disbursement and they said nothing has come in yet. Only that there was snow on the roof so it can’t be inspected and to call back on Monday, December 6th. I contacted Wells Fargo again and still no change and they said they would contact NFR to get an inspection, but without this inspection Wells Fargo will not release the 2nd disbursement. I called NFR and talked to Heather, who told me that they rejected the inspection since there was snow on the roof. Heather told me unless we get a heat wave no expect an inspection until all of the snow is off the roof. This poses a major hurdle since I live in Minnesota and we have snow through April. The major reason for this compliant is that the entire front of my house is also under construction due to this same storm damage. The contractor will not work on the home until a 2nd draw is received. The response given by Wells Fargo and NFR to wait till Spring! Wow, I feel I am in a never ending loop with these people!
N  23rd of Jan, 2011 by    +3 Votes
I too am a victim of a major property loss. My house caught fire in June, 2010 and I am still not in my house. My insurance company provided payment made out to myself and Wells Fargo. I had to endorse them and sign them over to Wells Fargo. We have just had an inspection 2 weeks ago and are considered 90% complete yet Wells will not release the funds required to pay the contractors (they have the invoices) which account for 90% or less. I cannot pay the contractors to complete the job without Wells Fargo releasing funds. I have never been treated so poorly by a company in my life. They are rude, arrogant and the process is absolutely dysfunctional. Reading everyone's comments sure makes me feel like this is a class action lawsuit waiting to happen. HELP!!!
A  4th of Feb, 2011 by    +3 Votes
Something must be done! Wells Fargo is not standing behind homeowners to make repairs after hail storm! Insurance check waiting to be signed off to release $$. Spent countless hours on phone! Being lied to & made to jump through hoops, one after another. Its been over a month. It's like they don't want you to fix it. I pay deductable, I pay Ins. Preimums, They control $$. How can they expect you to dish out moneyand continue to wait for them to send $$ I will not get any more work done to my house if this is the way they are going to be. Yes, I would like it to get fixed, but the stress is terrible! I do all the work and they sit back and do nothing to help you. You would think that the company that would be hard to deal with would be the insurance company not your mortgage company!! Beware if refinancing! It could happen to you!
A  23rd of Apr, 2011 by    +3 Votes
I am a plumbing contractor in Ct. who has been waiting for Wells Fargo to pay me for work done for a customer who has a Wells Fargo Morgage. The homeowners insurance companay paid Wells Fargo for the work.. I finished the job two months ago.I recently faxed all needed paperwork and then called 5 days later and was told no paperwork had been recieved! I see many problems on the horizon getting paid in the near future so I am applying a mechanics lien to my customers property and sueing in small claims..Wells Fargo will now pay all lien and court and interest fees as stated in my signed work contract with the homeowner..Enough is enough.
A  29th of Apr, 2011 by    +2 Votes
I'm having problems too. I had a flood in my home a month ago and my insurance company sent me a check the same week for $16000. I had to endorse it to wells fargo and I'm still waiting for my first check. One person will say they got all the paper work and another will say something is missing. I don't see my home being repaired anytime soon. I think they have all our money and are making killer interest at our expense.
A  11th of May, 2011 by    +2 Votes
Sounds exactly like my situation - holding my check hostage - promises of a 24-48hr turn around are more like 4-5 days. I have called them 3 times and each time I get a litany of excuses and apologies - sorry WFB that doesn't help - I want results and I want my money to fix my house. I supplied a FedEx envelop and airbill - guess what they dropped my check that I've been waiting on for 10 days in the US mail. Another apology but no one at WFB is accountable.
N  28th of May, 2011 by    +2 Votes
I have the same problem to get Wells Fargo to endorse the second check I got from insurance company. I went to the local branch and a person at the bank called Wells Fargo. Wells Fargo asked the bank fax all documentation with the second check. A person at the bank told me that Wells Fargo contacts me in the next few days. I have to travel out of the town and two weeks later, I have no phone call, no letter from Wells Fargo. I went back to the local branch. At the local branch, they have not problem to endorse the check; however, the total amount over 15K so the system would not allow the local branch endorse the check so they call Wells Fargo again. They told me that they need the letter from insurance company. I told them that all documentation I received with the second check sent to them already by the local branch personnel. They told me that the documentation was from third party. Yet, it was true that the third party did the inspection and informed the insurance company how much the cost of the repair and the insurance sent the check (second one) with the new estimate repair from the claim services (third party). I told them that " why don't you tell me until two weeks later that you would not endorse the check because no letter from the insurance company" They say they sorry. Does it matter if there is the letter from insurance company? Wells Fargo just give people hard time to endorse insurance check. Yet, I have never behind any payment and my 110K loan now have only a balance of 41K. If you think about refinance, choose someone else. Wells Fargo cost you more in refinance and give you hard time to endorse insurance checks.
A  14th of Jun, 2011 by    +2 Votes
I had a fire on my property to a shed with a loss of $12, 000. If a loss to one's property is 10, 000 or less Wells Fargo is to indorse the check back to the home owner. Since this is $2.000 over that Wells Fargo is holding our check and want to pay it down on the balance of our mortgage.($170, 000 equity) That is sooo rediculous on there part since they will lose intrest on that money.Told them to take the $2000 and apply to mortgage and give me the 10k. Waiting to see if they except this or if I need to contact my Lawyer or state insurance comissioner.The system needs a BIG overhaul!!!
A  5th of Jul, 2011 by    +2 Votes
I have a similar experience. They are holding money at Irvine, CA while I am rebuilding my home in Allen, TX for water leak. While Inspector inspected and sent 80% complete and I also sent all the canceled check that I paid out to repair guys and I am keep waiting for the money. I sent USPS express mail to return the check but I am keep waiting while I have to stop repair due to unable to pay as I already paid out 10's of thousand dollars on my own money. While I am paying mortgage and insurance, who the hell they are to holding money at CA. This is very frusttating and I am exhausted. Only way to hold them accountable to have a class action law suit. They have no rights to holding money while I am speeding up to rebuild my home.

Mohammad Islam
N  5th of Jul, 2011 by    +2 Votes
Well, there is power in numbers. I'm so ready for a class action lawsuit! I used up my savings to put my house back together now, I had my 100 % inspection, and I sent in my completion certificate. They are telling me that I need receipts! Well, the paper work says in black in white they will except cancelled checks, which I sent them and an invoice with a company heading on the invoice and proof and that is what I sent in. My flood happened March 28th and insurance issued a check in one week. I have yet to see a dime of MY MONEY!!! My insurance agent told me that wells fargo is the worst. They do not have timelines when to give you the money. In the mean time, the work cannot aways get completed because contractors do not work for free and the money runs out. These people are crooks. Im in if anyone wants a class action law suit. I'm also ready to be contacting shows like dateline and 20/20 where they can expose bad business.
A  27th of Jul, 2011 by    +3 Votes
I'm all for a lawsuit! Wells Fargo is holding onto a $24, 000 check for water damage that was repaired four months ago. My weekly schedule now includes a call to WF asking if they've released the check. Each time they come up with a new reason why they haven't:
1) no waiver of lien
2) no letter from my insurance agent saying the repairs were done
3) no contract signed by contractor
4) no contract signed by both my husband and me
5) waiver of lien not signed by contractor
6) waiver of lien not dated by contractor
One guy I talked to told me, "Of course we didn't get you faxes. Thousands of faxes go to that number!"
Other times the ### answering the phone tells me if I just do this one little thing, then they'll issue the check. I am beyond furious!!! Even my insurance agent told me WF is trouble.
A  3rd of Aug, 2011 by    +2 Votes
We agree with each and every one of you -- my DAILY schedule includes minium of 1 hour on the phone speaking with an employee of Wells Fargo Loss Department and faxing duplicate information to them over and over. We have requested numerous times to speak with a supervisor or manager -- he or she is conveniently unavailable.
A  23rd of Aug, 2011 by    +2 Votes
Wow what a list of complaints on Wells Fargo, they are totally a joke! I had hail on my roof back in April they signed the first check at a local branch and I had the roof done and paid the entire bill, alot of it out of pocket. Got the last insurance check and they said they want me to sign the check and mail it in. After that they will pay in increments, now that is a joke and after what I have seen above I didnt mail in my check. I like everyone above think they sure have crazy policies and they do nothing to make a customer happy and just looked today and they are over charging my escrow by 700 a year. Do what I did file a complaint with the OCC go to HelpWithMyBank.Gov at least cause them some of the pain that they are inflicting on you!
A  1st of Sep, 2011 by    +2 Votes
All the horror stories you are reading here are true! I have sent in every single required document and followed their "procedures" to a tee. I get the run around every time I call checking on my 50% inspection. I get a different story every time. These people are trained to mislead and lie. Now, I owe my roofing contractor $7, 000 of the money that Wells Fargo is holding. I can't even get anyone to call me to schedule an inspection. Every time I call WF I am told "they are doing all they can do". Do they really expect me to believe that???! So... they think I believe that the money can just sit there until God knows when, and all they can do is continue to send emails to the inspection company?? They refuse to give me any contact information for the inspection company. They say they don't have it. Really!!!??? Yes, whatever. This has to be some kind of insurance fraud they are committing. State Farm issued a check to have these repairs made, and Wells Fargo is holding the money and will not release it. I may be driving to Ohio if necessary. It is only 1/2 day's drive for me, so no biggie. I will also be refinancing ASAP through a LOCAL credit union and getting rid of Wells Fargo once & for all.
A  1st of Sep, 2011 by    +2 Votes
To keep this short, I just went through the same thing with Wells and it took over 3 months for resolution. My contractor waited 90 days for payment and wouldn't continue our repairs because it got so testy. Wells refuse to use up to date technoligies to fund out the draws, insisting to cut paper checks and send them Pony Express. In the late 90's the banking industry was sending draws on construction projects via wire or ach. In 2011 why does Wells send Paper Checks via first class mail. Hum... Could it be to hold the funds as long as possible? Better chance than zero that is the case. So here is what to expect. A multi step process that you, the home owner must manage. They will not.
1st step, call and tell them the work has been completed. They then assign a inspector to inspect the work. That takes 5-10 days depending on the work load. When the inspection comes in, don't expect a call. You must then call them again and initiate the check to you after the inspection is complete. HOw are you suppose to know when the inspection will come in you might ask. You have to call and call and a call. Trust me, it sucks. Once the inspection finally is in, they will send notice to cut the check. They will tell you that it will be the same day but when we received our envelope with the check in it, the post mark was always about 3 business days past when they said it would go out. Then you factor in First Class mail times and there you have it. Expect it to take 30 days per draw from start to finish. No, I am not kidding. You can build a home from dirt to keys in the same time it takes Wells to cut all of your monies back to you. I don't know how it is legal, way above my pay grade I guess but they get away with it and get away with it good. One final note, I actually filed a claim with the insurance commission in my state of Texas to claim some typ eof insurance fraud with the way they conducted this process. They essentially kidnap your funds and have stolen your money, legally. The insurance commission returned my inquiry and with great regret told me it was not in their realm of enforcment since the check had been cut from State Farm and we essentially signed it over to Wells when we started the process. So you are left with either enduring this mess, 3-4 months at least. Hiring an attorney to force it to end sooner. Or, deposit the check yourself without Wells knowledge but that route is one with some questionable consciquences. Whatever your choices, best of luck and I pray you never have to endure this process of hell like we did. Makes going ot the DMV seem like kindergarden.

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