Consumer complaint received 2019-06-13
Company: LoanCare, LLC
State: TX
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
This company began our mortgage as XXXX XXXX Loan Care and later became LoanCare. We received a letter from LoanCare on XX/XX/XXXX saying we were two months behind on our house payment and in serious trouble of loosing our home. Our troubles with this company began during the whole process of waiting for the loan to go through. I will explain our current problem and then explain " the rest of the story ''. 
I called to speak with LoanCare about this letter and explained that we sent both house payments in and both had gone through the bank so how could we be two months late? The person I spoke with said the records showed we were one month behind and I asked to speak with a manager.  After a long wait the manager came to the phone. 
Part of this whole confused mess was in XX/XX/XXXX our Insurance company, XXXX XXXX XXXX through XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, TX XXXX, phone ( XXXX ) XXXX, was paid {$1100.00}. for our XX/XX/XXXX year of house insurance. We did not know this until months later however. We received a letter from XXXX XXXX XXXX that the policy lapsed at XXXX on XX/XX/XXXX. They were billing us for {$1100.00}. for the house insurance. 
We wanted to get a lower house rate of interest to lower our house payments and XXXX was putting ads on TV about such VA loans so we decided to try and get another loan from them with an IRRRL VA loan so switched to that bank and ordered a XXXX house and auto insurance sometime in early Spring XXXX. We applied for a house loan through them as well. All through this LoanCare had already paid for the year of XXXX sometime in XXXX to XXXX XXXX XXXX for {$1100.00}. We began getting letters from XXXX saying they were not ever getting paid by our LoanCare for the house insurance and would we get ahold of them because they were not responding to XXXX communications in regard to this matter. 
Then when our house payment for XX/XX/XXXX was due we called LoanCare to make the normal {$670.00}. payment on the phone and they refused to take our payment over the phone because they said we owed {$800.00} each month now instead. We did not have any prior notification that our house payment was increased nor did we agree to this, have any documentation or signed any contracts about any of this. When I checked with XXXX the house insurance had gone up to almost double the cost for the year so my husband canceled their insurances we had through them. They also turned down our request for a house loan to do an IRRRL VA refinance loan at this time. 
My husband dropped a check in the mail for the XXXX house payment on XX/XX/XXXX at the normal rate of {$670.00}. I checked with XXXX XXXX XXXX and they said that in XX/XX/XXXX they received a check of {$1100.00}. paying for the entire year of house insurance for XXXX from LoanCare. This is the first time we found out they had been paid already for the insurance. In the meantime, LoanCare keeps sending us bills for over {$2000.00} and some, for insurance AGAIN. 
I checked by phone with XXXX at XXXX XXXX XXXX , XXXX at XXXX XXXX, TX and explained we were being double billed for our house insurance by LoanCare and could she please straighten this out with them? She agreed. I had already called LoanCare and tried to explain we already had house insurance they had paid to XXXX XXXX XXXX and that they could not raise our house payment without our permission and signed contract. They refused to believe me and said they had to hear from the Insurance Company instead. My husband also called and spoke with LoanCare and they refused to straighten it out then either. 
In the meantime, my husband sent another house payment of the normal {$670.00}. on XX/XX/XXXX for the XX/XX/XXXX house payment. 
I called and spoke to XXXX XXXX XXXX during the week of XX/XX/XXXX and they verified they had spoke to LoanCare and had straightened this out with them. 
On XX/XX/XXXX I confirmed with our bank of XXXX that both house payments had been cashed and they had been. So here it is XX/XX/XXXX and we get that letter from LoanCare saying we are two months late on our house payment and in jeopardy of losing our home. 
Both my husband and I spoke to the supervisor at LoanCare about this mixup and that we were caught up on the house payments and they tried to double bill us on the house insurance and since it had already been paid for the XXXX XXXX XXXX for the whole year of XXXX we did not owe extra for the house payments and they could not raise our house payments without our approval or contract signature. We had cancelled the XXXX insurance and it never went into affect so we did not owe the higher house payments of {$800.00} they were trying to say we owed. 
The LoanCare supervisor said that a check had been sent in XXXX to XXXX for {$2000.00} plus for the house insurance for XXXX and then she saw it had been refunded. She said we still owed increased house payments of {$800.00} from the {$670.00} they were anyway so we were still over {$500.00} behind. I said if the original {$1100.00}. XXXX XXXX XXXX had been paid in XX/XX/XXXX how could we still owe the increased house payments? She said she understood but we still owed it. My husband spoke to her and explained the same thing and she told him the same thing she told me. She said she would send us documentation about this and what we owed. 
This company has given us nothing but grief every since the beginning of the loan on this house. My husband sold his lakehouse in XX/XX/XXXX and cleared {$23000.00}. But he had to move out of his house into a motel as the new owner moved in. It took 77 days, with four changed closing dates on the new house with XXXX Loan Care ( now LoanCare ) and every time the interest and all costs kept going up. The XXXX Loan Care company each month asked for 4 more bank statements, sending my then fianc, new contracts and new closing dates for four different times. He finally closed on the house at the end of the first week in XXXX after 77 days and spending all he profited from selling his lake house except {$160.00} for housing and food in a motel. 
The stress made both my husband and I ill with a flu for over 4 weeks and my husband is us.XXXX and a XXXX Veteran with XXXX and he went without his insulin and medications most of that time because the VA wanted a permanent address to send his medicines to and not a motel. He was also a long distance away from a VA hospital. It resulted in him getting locked into a downward spiral of a XXXX, XXXX and XXXX state and he ended up going to a XXXX hospital to get him well again for over a week. 
We got a lawyer to try and get the LoanCare company to reimburse him for some of these expenses as it should never have taken them 77 days to get into the new house due to their incompetence and neglect. The lawyer took all the supporting documentation, and my husband 's money but did nothing about this case. Then when we fired him he refused to give my husband 's documentation back so we could get another attorney. So once again he was shafted and lost his money for nothing. My husband almost lost his life from all this and we would like some kind of justification from all this grief LoanCare has given us. Now after all this they are trying to take our home from us as well. 
We spoke with one of the women who helped work on this loan, XXXX, and she left the company and said the supervisor there did everything wrong and illegally. That is why she left the company. 
In addition, the XXXX Loan Care company gave us a much higher interest rate than was for a VA loan. It ended up being an interest rate of 5.25 % instead of the going rate of 4 % at that time.

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