Consumer complaint received 2018-03-26
Company: LoanCare, LLC
State: AE
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
I'm currently a XXXX XXXX working overseas in XXXX. Due to local real estate loses, we determined with the help of a lawyer to request a short-sale on our home at XXXX XXXX XXXX, XXXX RI. The short sale was approved by FHA and our mortgage company XXXX XXXX XXXX ( XXXX ) and processed on about XX/XX/XXXX. Our lawyer in Rhode Island XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX, RI XXXX performed the short-sale on our behalf as power of attorney. About one week later, the mortgage company sold the mortgage to a 3rd party, XXXX XXXX. This company continues to show our loan in arrears ( 15 months overdue, XXXX owed ), and is reporting this to all credit bureaus. As a holder of a military security clearance, this has significant potential to impact my ability to maintain the clearance and my job. 

Here is the approximate timeline : On XX/XX/XXXX- We recd email from our lawyer that our mortgage company XXXX had approved the short sale, and it was to be recorded on Tues XX/XX/XXXX.

On XX/XX/XXXX we received this email : " Congratulations! We will send you a closing package with documents pertaining to your short sale as soon as the deed is recorded .... '' XX/XX/XXXX- Email from the lawyer receiving documents for Deeds of the closing. 

XX/XX/XXXX- Debt Validation letter from Loan Care with delinquent balance due.

On XX/XX/XXXX We recd our short year escrow analysis statement form XXXX XXXX XXXX On XX/XX/XXXX- We recd letter from XXXX XXXX XXXX stating they were transferring our loan to Loan Care. 

On XX/XX/XXXX and every month since, we have recd monthly statement from LoanCare with past due balance.

On XX/XX/XXXX- We sent email to our lawyer stating that we continued to receive statement from mortgage company showing arrears. They replied that our file was closed and the sale had been completed. 

On XX/XX/XXXX - We received this from our lawyer : " You were notified by mail to XXXX that the loan had been serviced out to another company, LoanCare right around the date of our closing. We have been working to get the loan discharged. This is the bank 's responsibility and they have shirked on it due to the timing of your closing and the service out. For reasons related to the buyer of your property, who is a client of ours, we have to follow through to make sure the discharge is recorded by the bank. 
Once this happens, you will have proof your loan is fully paid off. Getting through to the new servicer is like breaking through the iron curtain, but it has to get done immediately. I will keep you posted. '' On XX/XX/XXXX- We recd email from XXXX stating they could not help us with our loan question From : Customer Service [ XXXX ] Sent : Saturday, XX/XX/XXXX XXXX XXXX  To : XXXX XXXX XXXX XXXX XXXX XXXX XXXX ; Subject : [ Non-DoD Source ] RE : RE : XXXX XXXX XXXX still reporting delinquent ( XXXX ) REFERENCE NUMBER : XXXX Please use this ticket number in any correspondence with us. 
SUBJECT : RE : XXXX XXXX XXXX still reporting delinquent Dear Valued Customer, Thank you for contacting us. We have received your recent inquiry regarding your mortgage account. Our records indicate your online access has been revoked due to the current status of your loan. If you have questions please contact our Loan Counselors at XXXX. Please DO NOT REPLY to this email. Your request has been marked resolved and this ticket has been CLOSED. Replies to this resolved ticket will not be monitored. If you need further assistance, or have additional questions, please submit a new request by visiting our website and logging into your account. 
Sincerely, Customer Support XXXX XXXX XXXX XXXX  XXXX, VA XXXX On XX/XX/XXXX - We received email from loan care stating Escrow Disbursements had been made on our behalf in the amount of {$1000.00} ( City of XXXX RI Taxes ). 

 XXXXXXX XXXXXXXXXXXXYour loan number is XXXX.The following disbursement was made out of your escrow account on the above referenced loan : Disbursement Date : XX/XX/XXXX Disbursement Amount : {$1000.00} Disbursement Description : City Taxes If you no longer wish to receive this email notification, please unsubscribe XXXXXXX XXXX XXXX XXXX .Please do not reply to this message. This email is an automated notification, which is unable to receive replies.Please contact us directly via www.myloancare.com/.XXXX  XXXXXXX XXXX to this message will not be read or responded to.NMLS # XXXXNOTICE : The information contained in this message is proprietary and/orconfidential and may be privileged. If you are not the intended recipient ofthis communication, you are hereby notified to : ( i ) delete the message and allcopies ; ( ii ) do not disclose, distribute or use the message in any manner ; and ( iii ) notify the sender immediately. 

Bottom line : - We have closing documents and HUD-1 statement from XXXX showing the short sale was final on XX/XX/XXXX - We've continued to receive monthly statements from XXXX XXXX company with a balance due, and are having this reported monthly as " lates '' on our credit report. 
- Rhode Island state escrow payments are being made on my behalf. 
- The house is currently occupied by the new owner. I'm concerned who actually owns the house, who should be insuring it, and has liability - I am concerned about the risk of foreclosure.

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