Consumer complaint received 2019-07-30
Company: LoanCare, LLC
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
To Whom It May Concern : I am writing to file an official complaint regarding the handling of my condominium closing and loan pay-off on XX/XX/2019. 

Due to the bankruptcy of the servicing company handling my loan XXXX XXXX XXXX, my loan was transferred to LoanCare effective on XX/XX/2019. This information was provided via email to the XXXX processor handling my condo closing XXXX on XX/XX/2019. 

Since I could not attend the closing, I received the closing documents on XX/XX/XXXX so that I could sign them. These documents still listed XXXX as the lender with the XXXX payoff amount. I signed the documents but indicated to XXXX that the information was incorrect. They assured me in writing on XX/XX/XXXX that LoanCare had been entered in their system and that they were in touch with them for the new payoff information. 

On XX/XX/XXXX I noticed that the deposit on my bank account was smaller than expected and I received the post-closing documents from XXXX listing two payments an incorrect payoff to XXXX ( {$110000.00} ) and a correct payoff to LoanCare ( {$110000.00} ). 
I immediately contacted XXXX to resolve the double payment and together with their representative we started calling LoanCare. LoanCare customer service indicated that they had opened an investigation and we would hear within a week. 

We never heard back. We started calling at one-week intervals and were given conflicting information from every person we spoke to, including managers to whom the issue was escalated. XXXX provided proof of the payment on XX/XX/XXXX, but later found out that the ticket had not been opened as LoanCare required proof of payment from XXXX. LoanCare indicated they would reach out to XXXX. On XX/XX/XXXX we were able to coordinate a 4-way call including a LoanCare manager, XXXX, XXXX, and myself. The XXXX representative indicated that the loan payoff had been forwarded to LoanCare immediately upon receipt on XX/XX/XXXX as part of a bulk payment. LoanCare was unable to trace the funds. 

In my latest discussion with LoanCare today ( XX/XX/2019 50 days after the closing ) and more than a dozen calls, there was still no information regarding the status of the search for my funds. Some LoanCare employees indicated that funds had to be located within 60 days of loan transfer and there was confusion if that would be by XX/XX/XXXX or XX/XX/XXXX. Written documentation from LoanCare regarding the payoff of my loan indicated that overpayment would be returned to me within 10 business days, i.e. XX/XX/XXXX. 

XXXX  mishandled more than $ XXXX of my funds by issuing a double payment that had not been approved by me in the closing documents after I had been assured that the loan transfer had been correctly entered in their system. 

LoanCare had been unable to identify the funds from XXXX which were transferred to them 8 weeks ago even if they were put in direct contact with XXXX in my presence. Customer service and management have been terrible, contradictory and unhelpful. It is not possible to communicate with the departments handling the investigation and nobody seems to know what they are doing. 

At this point, I would like to be contacted by legal representative of both XXXX and LoanCare with a clear plan of action, since both companies are responsible. I will be seeking also legal counsel and report this issue to the appropriate regulatory agencies.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation