Consumer complaint received 2023-11-01
Company: LoanCare, LLC
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Escrow, taxes, or insurance

Complaint:
Loancare has failed to accurately manage and execute their fiduciary responsibility regarding my property tax and hazard insurance escrow account associated with loan number XXXX. 

This lack of performance has resulted in overdue XXXX XXXX property taxes of more than {$8800.00} for XXXX with over {$1200.00} penalties assessed on my home located at XXXX XXXX XXXX XXXX XXXX, Ohio XXXX. In addition, the time and effort expended dealing with Loancare, the XXXX XXXX Ohio auditors office, and getting informed about Loancare escrow details and auditor processes should not be my responsibility. 

Escrow payments and principal and interest on a 30 year mortgage were made monthly starting in XXXX of XXXX and every month thereafter via automatic deductions from my personal bank account. The escrow payments consisted of {$1000.00} monthly for XXXX XXXX XXXX XXXX Ohio property taxes and for annual hazard insurance. 

The escrow account opened with a balance of {$2800.00} paid XX/XX/XXXX at closing and {$1000.00} was paid into this escrow account each month starting in XXXX of XXXX. XXXX XXXX policy for XXXX in the amount of {$1400.00} was paid for at closing with personal funds. XXXX XXXX XXXX in the amount of {$1500.00} was paid by Loancare from the escrow account associated with the loan. 

XXXX XXXX Ohio auditors require 2 accounts established on a residential property, one account for the land and one account for the home. The account number for the XXXX acre land parcel is XXXX and the account number for the home is XXXX. Loancare does not have the appropriate account numbers for both accounts and has paid a total of {$42.00} for the land for XXXX paid to the auditors office. Nothing was paid on the house to date. Auditors office does not have contact information for Loancare associated with the home account number on Auditors records. 

Loancare issued a refund to the borrower on XX/XX/XXXX in the amount of {$5600.00} with only refund notated on the check and a note saying escrow excess balance was being refunded. This check was mailed to appropriate address where borrower lives and to which mortgage applies. Again on XXXX a refund was issued to borrower in the amount of {$11000.00} with refund and a note indicating excess escrow monies. To date as of XX/XX/XXXX borrower had not received this money as it was not mailed to borrower at his home address to which the mortgage relates but rather to a prior address. Loancare finally put a stop to this check and borrower finally received a reissued check on XX/XX/XXXX. 

In above cases of refunds, borrower did not know property taxes were not paid as Loancare was required to pay and therefore borrower thought the escrow overage was a result of over estimated and/or overpaid property taxes for a new home and too much monies paid into escrow account. XXXX XXXX Auditor office sent an invoice to homeowner for past due taxes on XX/XX/XXXX which was the first notification received of property tax delinquencies which started the process of dealing with auditors office, Loancare, and six different rank and file employees who were extremely uninformed, not helpful, all of whom would not put me in contact with a decision maker or an informed escrow account management person. 

Entering into this complaint process with CFPB was initiated to insure a complete review of my escrow account with Loancare, insure Auditors property tax accounts are paid in full, and borrower is made whole on any and all penalties, interest, and charges incurred as a result of Loancares lack of performance. In addition, a review of current monthly escrow payment amounts to more accurately reflect what dollars need to be escrowed would make sense as estimates on taxes and insurance to be escrowed were overstated at time of closing. Borrower would rather pay monthly escrow amount that more closely aligns with true tax bill details and insurance premiums. 

As of XX/XX/XXXX homeowner has had no correspondence, directions, or next steps from Loancare in effort to resolve the proper administration of the escrow account associated with my home loan. 

As of XX/XX/XXXX XXXX XXXX Ohio Auditors Office has not received property tax payments and penalty payments from Loancare. 

As of XX/XX/XXXX Loancare has not followed through with multiple promises to execute escrow reviews and respond to homeowner within 3-5 business days for explanations and next steps. 

Complaint filed by homeowner and mortgagor Loan number XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX, Ohio XXXX XXXX

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