Consumer complaint received 2020-05-04
Company: LoanCare, LLC
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My mortgage originated with XXXX XXXX and was serviced by XXXX. XXXX began servicing the loan in XX/XX/XXXX. On XX/XX/XXXX, XXXX bought the loan to be serviced by Loancare. 

In the short interim when XXXX serviced the loan ( 7 months ), I made an extra payment in XX/XX/XXXX. I paid the XX/XX/XXXX payment of {$2100.00} but the same day I also sent {$2000.00} also marked XXXX Payment. I could not cancel the {$2000.00} at my bank. I called and wrote to XXXX on multiple occasions. Always XXXX said they were still researching what happened to the {$2000.00}. 

The policy in my original mortgage contract, XXXX XXXX introductory letter, XXXX introduction and XXXX/Loancares initial letter ALL set nearly identical policy. The loan company could accept the partial payment as a payment, it could refuse the payment and send it back to the borrower or it could hold the payment in a separate suspense account until the full amount was paid. My XXXX {$2000.00} payment was short {$130.00}. 

I asked for the money to be returned. It was holiday time and XXXX  my kids had college costs pending for the next semester. XXXX only said still researching all the way to the XX/XX/XXXX statement. They acknowledged both payments in the XXXX statement but they didnt return the payment and the suspense account was always XXXX. 

After trying to learn of the fate of the payment for more than 3 months, I informed XXXX I would not be paying XXXX as they could not account for my XXXX payment. If the payment wasnt in suspense awaiting the {$130.00} balance AND, had not been returned, it must have beenaccepted. 

XXXX did not object. XXXX did not send a late notice, missed payment or add a late fee. I, mistakenly, sent XXXX the XX/XX/XXXX payment and on XX/XX/XXXX received a missed payment notice from Loancare. I called XXXX and was told the XXXX payment was sent to Loancare and I was not in arrears at all. 

XXXX set a positive balance of {$600.00} in escrow. Loancare said XXXX had sent a debt of {$1100.00}. XXXX denied this. I could not get an answer as to what it was for? So Loancare starts off claiming I owe {$2300.00} in missed payment and {$1100.00} in unexplained debt. I start off at Loancare owing {$3500.00} added to the escrow of {$600.00}. In 7 months, Ive incurred {$4100.00} in debt when there was no debt passed by XXXX and XXXX denied any arrears. Where does this come from?? 

Loancare raised my monthly payment to {$2300.00} ( over $ XXXX/month ). I asked for an explanation for the debt and increased payment. The only thing Loancare told me was that their company changed the end-of-cushion from {$1100.00} in escrow ( spelled out in my mortgage contract ) to more than double, {$2300.00}. 

Loancare started telling me that the XXXX payment DUE to XXXXthat I told XXXX  I wasnt payingwas supposed to come to us. That made no sense because the Loan was still due to XXXX. But Loancare claimed it was their money and XXXX could not make a deal to accept it for the XXXX payment to cover XXXX. I paid an additional {$350.00} to ensure the XXXX {$2000.00} payment added to {$350.00} was a complete payment at Loancares highest monthly payment {$2300.00} I pushed Loancare about where is the extra payment. Loancare eventually told me during a phone call in XXXX, that XXXX had correctly put the overpayment in Suspense. A day later, XXXX took the contents of the Suspense account and applied it to escrow. 

Lamely, Loancare tried to claim this was consistent with my loan contract. It is not. Next, Loancare said it was XXXX mistake ; my complaint was with XXXX ; Loancare had nothing to do with it.i had to go through XXXX and unless I resolved it with XXXX, Loancare will report me more than 30 days delinquent to all the credit bureaus every month. They started charging me late fees of {$75.00} a month and promising my bad payment history will allow them to keep the PMI in place ( {$87.00} ) forever. So Ill be charged an extra $ XXXX/month forever unless I just make ANOTHER double payment. My payments will run {$2400.00} under Loancare though XXXX XXXX, XXXX, and XXXX had no arrears. 

When Loancare told me in XX/XX/XXXX XXXX 14 months after the double payment ) that XXXX had taken from mySurplus acct and put it in escrow, it was obvious that was something XXXX did to make the loan look even better to Loancare. XXXX was negotiating with Loancare to sell a bunch of loans. And, XXXX was in a bankruptcy. 

In addition to reporting me to all the credit bureaus ( whichI learned only at the beginning of this year ) and calling my account defaulted, Loancare repackaged my monthly statement so that at the front of the envelope, under my name and with underscore to make it standout, Loancare writes Please call us about your recently missed mortgage payment. It sick and unlawful. 

The bottom line : these companies have billed me for {$60000.00} through XX/XX/XXXX. Thats all they requested even with the {$2300.00} I have paid them. I have PAID {$62000.00}. I have paid and extra {$2300.00}, the highest payment ever sought. In a letter from XXXX XXXX dated XX/XX/XXXX, she claims I owe {$1900.00} which would be added to the {$350.00} from another extra payment that has, actually been legally maintained in the suspense account. 

Together the amount she seeks to keep my account current is {$2200.00}. But I have already overpaid {$2300.00}. I am still AHEAD of what I have been billed. They cant report me late, destroy my credit, add late fees, refuse to cancel PMI and harass me with missed mortgage payment on the outside of my bill.

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