Consumer complaint received 2021-03-24
Company: LoanCare, LLC
State: ME
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I have consistently gotten incorrect and contradictory information from LoanCare about what needs to happen for them to release the funds from XXXX XXXX so I can rebuild my home after a catastrophic house fire. The house fire was on XX/XX/XXXX. 

When I got the check from XXXX XXXX made out to both myself and LoanCare, I called LoanCare, spoke with XXXX and asked what I should do. I was told to send it to them, and they would endorse the check and send it back to me so I could pay for repairs. I was told this would take a few days. On XX/XX/XXXX I received a letter ( see attached ) indicating they were returning the check made out to both XXXX XXXX and I for the reason checked below. Nothing was checked. I called the number and was informed they needed me to endorse it and they would release the funds. I endorsed the check and sent it to them. When I called to follow up, they said they had provided me with the information on what they needed from me. I indicated that I had not received it and asked for the information verbally. I was told they needed a signed contract for the rebuild. I uploaded the contract and the first invoice for {$40000.00} for the deposit to begin the work. 

On XX/XX/XXXX I received a letter saying my claim is non-monitored ( see attached ). I called and was told this was a mistake. I was told that I needed to provide the contractors insurance information, bond, and license. I checked with my contractor and he said in Maine general contractors do not need to be bonded or licensed. I called back and was first told that I would need to submit licenses for all of the sub-contractors. I was then told that they would request an exception from Corporate to see if they would allow me to use the contractor. That review would take XXXX business days. During this time, they released {$24000.00}. When I called LoanCare, I spoke to XXXX ( Sorry not sure of the spelling ) on XX/XX/XXXX to ask how that number was determined they told me it was 1/3 of the amount, less the {$15000.00} XXXX XXXX had sent to me. I explained that those funds went directly to XXXX XXXX for the cleanup after the fire and I did not have access to them. I was told they would request the {$15000.00}. During this time, I submitted the second invoice for XXXX While that review was taking place, the second check from XXXX XXXX arrived. This doubled the amount of the loss ; the reimbursement from XXXX XXXX now exceeded the balance of my mortgage. The amount reflected the costs that were detailed in the contract I uploaded originally. I was told it was now a complete loss and I had to request to rebuild. I was told I had to provide a letter stating that I would complete the work that was detailed in the contract I uploaded in XXXX. I needed a second letter from the contractor stating he would do the work detailed in the contract. On XX/XX/XXXX I uploaded the letters. I called on XX/XX/XXXX and was told the letters were not processed yet, but that I would be all set when they had them. 

On XX/XX/XXXX I called to find out what happened and when I could expect the check. The XXXX employee XXXX XXXX Sorry not sure of the spelling ) told me I needed a letter of attestation that the work would be done. I asked her if the letter on file was sufficient. She said that it was confusing because I needed two letters. I pointed out I had uploaded two letters. When my husband, who was on the phone with us, expressed his frustration with this process, she indicated she did not have to listen to his attitude and hung up. The call was 38 minutes. I called LoanCare back and spoke with XXXX XXXX Sorry not sure of the spelling ). She indicated that I needed an inspection before they could release the money. She said they had released {$24000.00} which was 1/3 of the total minus the {$15000.00} sent to me directly by XXXX XXXX. I pointed out this was a $ XXXX claim and that there was nothing yet to inspect. She then said I needed an appraisal of what the home would be worth after the repairs were made. I said that cant be done because the appraiser wont know what the finished project would look like. She then said the contractor could provide the appraisal. I asked her to check the contract to see if it contained the information she needed. While she was doing this, we were disconnected. The call lasted 45 minutes.

I called LoanCare a third time and spoke to XXXX XXXX Sorry not sure of the spelling ). She told me they had all the paperwork I needed, and she would put a request in for the funds. I requested to speak with a supervisor because I was getting different information from different people. She said there was no way to forward me to a supervisor, but that she would have one call me. I asked what the time frame was, she said 24 hours. I asked if I was able to return the call if I missed it and she noted there was no way to reach them directly. She did note that my preferred time was between 10 and XXXX am on XX/XX/XXXX. 

On XX/XX/XXXX I spoke with XXXX XXXX. She said supervisors had 24-48 hours to respond. I asked for documentation on the steps to go through to have funds released when the claim involves a total loss. She said that is not information they provide in writing. She also indicated no request for funds had been initiated and she would do so. 

On XX/XX/XXXX I spoke with XXXX. I noted I had requested a supervisor call me back and had not received a call. She said she would initiate a second request. I provided a third invoice for {$21000.00}. She said she would update the request for funds, but that corporate would decide how much to release. She was unable to provide me with information about how they made the decision or what my recourse was if they did not release the amount for the invoices I have submitted. 





On XX/XX/XXXX XXXX called and indicated they would not be releasing the funds until there was an inspection. While their website says that inspections are done after 50 % of the work is done, XXXX confirmed that they can request an inspection at any time. She was unable to provide timelines of how long this would take. She indicated there was nothing else that needed to be done on our end after the inspection was done. I have not yet received a call from a supervisor. She indicated she would put the third request in for a supervisor to call us back. 

The ongoing delays mean that work can not be accomplished on a timely basis. This is problematic for several reasons. 
Costs for construction are going up on almost a weekly basis. This means delays on their end may result in increased construction costs. 
We are unable to live in the home while it is being rebuilt. The delays mean we will be out of our home longer. 
XXXX XXXX is only willing to pay for a rental for a reasonable period of time. If the delays result in it taking longer than this, XXXX XXXX will not pay for our rental. As we will not be able to live in our home until the construction is finished, we will be homeless. Please see attached letter.

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