Consumer complaint received 2020-08-05
Company: LoanCare, LLC
State: MI
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
In XXXX I advised my servicer, LoanCare that they were not timely processing my payments, were improperly assessing late fees, and taking my additional payments and applying them to the improper late fees instead of towards the principle. I requested an account audit, that the improper late fees be removed, that the additional payments be applied to the principle, and that the interest be adjusted. After several months, the servicer finally began addressing this issue in late XXXX XXXX. As a result of their account correction, the servicer removed 6 months worth of payments and sent me a notice of intent to foreclose on my property on XX/XX/XXXX and advised that those same 6 mths payments were passed due, that I was in default on my mortgage, and had to issue a forthwith payment of {$5000.00}. I thereafter had to obtain a certified statement from my bank along with the cancelled checks issued directly from my bank to confirm that the payments were received by LoanCare, that I was not in default, and had no late fees. I filed a Complaint with this agency and did not receive a satisfactory resolution.

While LoanCare was making account adjustments they issued a 1098 statement for XXXX that did not represent the 12 months of mortgage and interest payments I made. I filed a written request with LoanCare on XX/XX/XXXX, have called and spoken with various company representative on at least 10 occasions with the last being on XX/XX/XXXX and to date they refuse to provide a corrected 1098 statement that represents the full 12 months of payments they received in XXXX. Additionally, they have begun improperly assessing late fees to my account again. I have advised LoanCare of this extraordinary burden, that i have been assessed additional fees by my tax accountant as a result of these delays, and that I am not able to file my XXXX taxes due to these delays. I have exercised extreme patience, have had to explain to the representatives the errors on my account because they do not read the account notations and instead of also correcting the new issues with the additional improper late fees, was advised that I had to make a separate complaint about the matter. Lastly, LoanCare initiated and granted forbearance request for my account when I have never request one. When I told LoanCare to remove the forbearance, advised that I never made a request either in writing, by phone call or any other manner, they advised that they were not sure why someone initiated the request on my account as they did not have a record of me making the request. 

This servicer does not keep and maintain accurate business records, refuses to timely address or address at all the errors with their business records for the accounts they service, and places the consumers at an extreme unfair disadvantage due to their failing and negligent business practices.

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