Consumer complaint received 2019-06-12
Company: Lima One Capital, LLC
State: NE
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
We closed on this loan in XX/XX/2018 with Lima One. 

- The interest rate was raised by 1 % right before closing. I never received information regarding this matter. The only reason I even knew about it was because my title company all of a sudden got new documents from Lima One with a higher interest rate than the original documents right before we were set to close. My title company was concerned during the entire process about how the mortgage company was handling this closing and saw several red flags. I asked the broker what happened with the interest rate he said he didn't know and there wasn't anything I could do about it and I would be receiving information about it from Lima One,  which I never did. 

- In XX/XX/2018 I was informed my insurance had been changed and didn't meet Lima One 's requirements. Which is not the case. When we were about to close in XX/XX/XXXX the underwriter told me and my insurance agent that all the properties needed changed to meet Lima One 's guidelines. So it wasn't until my insurance company changed everything and documented all of that information to meet Lima One 's guidelines that we were able to close. 

One of the properties did have a miss-understanding because Lima One assumed it was one insurance when in fact because there are 2 separate roofs/houses on one lot it was actually 2 separate insurances. 

- In XX/XX/2018 because of the insurance questions Lima One decided not to pay the escrowed insurance on 2 of my properties that were due, nor did they put forced insurance on my properties. Lima One just didn't pay the insurance on 2 of the escrowed properties. Which meant the insurance on 2 of my properties lapsed and the houses were not covered. Even though I have made all my payments including my escrow to Lima One they decided not to pay it. The proper way this is handled is through an escrow analysis and increases to my payment or one large payment to make up the difference if there is a discrepancy. Or forced insurance coverage. Not paying my insurance not only put my investments at risk but also Lima One 's investment at risk. 
So I paid the insurances on my own ( double paid ) so they would go back into effect and I received penalties I had to pay because of it. 

- In XX/XX/2018 I got flood notification 's from Lima One that all of my properties with them were in flood plains. And stating I needed flood insurance for all my properties. There are no flood plains were any of my properties are located. 

- Both my title company and insurance agent had many difficulties working with Lima One and had issues throughout the entire closing process and beyond. 

Due to the issues and miss-handling of my loan I do not trust keeping my properties at risk with Lima One. I am refinancing them and have asked Lima One to waive or at least reduce the pre-payment penalty due to their neglect with my loan and my need to look out for my business and refinance with a more reputable company. 

They have stated the contract says I must pay the 5 % pre-payment penalty and they will not waive it. 

I have also let them know that the contract also stated that my properties had to be escrowed and Lima One is to pay my escrow. And they did not live up to their end of the contract either by deciding not to pay my insurance.

Company response to consumer: Closed with explanation