Consumer complaint received 2022-09-02
Company: LoanCare, LLC
State: TX
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
-- We were in a forbearance which was to end in XX/XX/XXXX. 
We submitted an application to XXXX XXXX in XX/XX/XXXX for assistance with a lump sum payment once forbearance ended. 
On XX/XX/XXXX, we learned Loancare was to become our new loan service provider XXXX  decided to request a new packet to be completed by Loancare to satisfy the requirement for the documentation by the federal government so they could disburse the funds. 
At the beginning of XXXX, XXXX began to reach out to Loancare to request that they complete the packet for the loan service portion. This was required for the XXXX RELIEF PROGRAMS that all payees must have completed a form W-9 before releasing funds. 
In the middle of XXXX, I received a phone call from XXXX to let me know they were facing difficulty making contact with anyone so they could complete the packet for the servicer. 
XXXX called to discuss mortgage transfer, forbearance, and options. I informed her that I had previously been approved for a lump sum funding payment plan through XXXX, and XXXX XXXXXXXX XXXX had already approved this. This packet needed to get completed right away so that we wouldn't lose funding since they could only pay back payments for up to six months. We would have only been delinquent at that time for 5 months.

I made a phone call to XXXX  and to Loancare regarding a certified letter from Loancare threatening to place the house in foreclosure and report to credit bureaus. Also, they stated they did not receive any paperwork from XXXX XXXX XXXX  regarding repayment plan or existing forbearance or the fact that we had just completed our Modification in XXXX XXXX then completed the deferral application prior to the husband 's job loss then the forbearance application that began in XXXX. Loancare was unaware of the facts of our mortgage and it was lost during the transfer. Wouldn't this have an affect on the amounts that Loancare would be using to come up with their figures pertaining to our account??? 
On XX/XX/XXXX I sent the packet via email to XXXX through the Loss and Mitigation Department. She was to send it back to me, and I would forward the packet to XXXX  and I explained that XXXX  said that the process for the payment disbursement would still take a couple of weeks to receive the funds for our past due mortgage. I also asked if we needed to extend the forbearance so we would be protected while the payment was processing. She didn't mention anything about the certified letter being anything that I needed to be concerned about. Almost acting like it was a formality for everyone in forbearance. I had also spoke with the VA and told her they suggested to get a Partial Claim to cover any amounts that XXXX  might not be able to. So XXXX in Loss Mitigation at Loancare finalized our payback plan. 
XXXX called me beginning of February to let me know that she went ahead and emailed packet over to XXXX  but the W-9 form was not completed due to having to request the document from another department.

XXXX  requested our latest mortgage statement and I sent over the XXXX XXXX statement in the amount of {$19000.00} for total arrears that were due. I also noticed a fee that was charged for {$25.00} for Inspection fee Assessed which I had no clue what this was for. 
-- I was starting to get a little concerned that nothing had been done about the W-9 . I began making calls and sending emails Highlighted in YELLOW MARKED URGENT for the months of XXXX XXXX XXXX and stressing the fact of losing funding, every couple of days regarding the W-9. At this point we were waiting for the requested W-9 for almost 4 months and FINALLY RECEIVED IT on XX/XX/XXXX. XXXX*ISN '' T THIS PART OF RESPA and a violation thereof? I also received a notice stating that the validation period had passed in XXXX and I would hope that isn't just for us but for all involved, yet they couldn't provide a half page document timely. 
-- I received an email that the Notice of Approval will be sent to Loancare with payment schedule details per XXXX XXXX XX/XX/XXXX. XXXX XXXX XXXX XXXX XXXX  Notice of Approval and SCHEDULE OF FUNDING for {$19000.00} plus XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX in the amounts of {$2100.00} would be sent for future payments and we would start picking up the payments in XXXX. 
XX/XX/XXXX A Letter was sent to Loancare confirming the disbursement of funding. 
I called and also sent an email to notify and update XXXX. 
XXXX received the copies of the checks and dates that they were deposited and cashed by Loancare. 1st check in the amount of {$13000.00} also the first future payment separate check for XXXX  Mortgage payment for {$2100.00} XX/XX/XXXX forwarded via email the copy of checks both dated XX/XX/XXXX -- XX/XX/XXXX We received a letter of Notice of Right to Cure Default. I sent an email explaining that I was astonished at the lack of attention that was paid to our mortgage and expressed my anger and frustration and asked for them to correct their error. I never received a reply. 
XX/XX/XXXX I completed and submitted a VA Partial Claim request and sent the requested documents. 
XX/XX/XXXX I received an email stating that I had an incomplete application and notified me of the needed documents. If they do not receive a complete packet by XX/XX/XXXX they will not review it past that date. 
XX/XX/XXXX. I sent an email that contained EVERY REQUESTED DOCUMENT ON the notification for the " incomplete application ''. EVERY SINGLE DOCUMENT WAS ATTACHED AND SENT. XXXX CONFIRMED RECEIPT. 
XX/XX/XXXX I received an email stating that 5 ITEMS were not sent and the application was considered incomplete. I immediately sent another email requesting an immediate phone call and to find out why they were asking me for documents I had sent two weeks ago. 

I made a phone call and XXXX said the loan was going to foreclosure and that she never sent any of my applications to Underwriting and could not give me a reason why any of this was happening. ALSO she transferred me to XXXX who was the Team leader for the customer. He PROMISED ME HE WOULD INVESTIGATE AND CALL ME BACK IN 2-3 days. HE NEVER DID. I CALLED HIM AGAIN and he hadn't even looked into this almost 2 weeks later and he said he could not see that we were in a modification current from XXXX XXXX XXXX. I told him all it was to happen was a reinstatement after our lump sum payment. He said he could not locate that there was a payment at all made anywhere on the loan from anyone. 
XX/XX/XXXX. I sent a Notice of Error Date : XX/XX/XXXX To : LoanCare XXXX XXXX XXXX Virginia XXXX, Virginia XXXX From : XXXX XXXX & XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX  XXXX Re : Error Resolution Notice under XXXX C.F.R. XXXX Mortgage Loan Number : XXXX I am writing to request the correction of the error described below regarding the mortgage on my property at XXXX XXXX, XXXX, XXXX  XXXX At the beginning of XX/XX/XXXX. Our loan was transferred from XXXX XXXXXXXX XXXX  to Loancare to become our new mortgage servicing company. Before XXXX XXXX XXXX was purchased by Loancare, my husband and I were working with a nonprofit organization, XXXX. In XXXX of XXXX, we began planning for the missed payments that would become due once the forbearance expired. My husband was returning to work from two involuntary layoffs due to XXXX. It would have been hard to come up with the money without assistance. I began working on our application with XXXX. The non-profit had proposed that they could pay up to six months in past due mortgage payments and up to three months of future payments once we were approved. They also stressed that our application needed to be processed quickly because their policy would only allow paying back six months, and anything more would not be covered. We were in a good position because we only needed to pay four past due payments as of XX/XX/XXXX. I was working with XXXX XXXX XXXX  to obtain the required documents that I would need to process the approved application so XXXX  could release the funds. 
Per the federal guidelines, for the funds to be released under the assistance for XXXX  RELIEF, a Form W-9 would be required to show the company that receives the funds was in good standing. I requested the form in XXXX  received the W-9 from XXXX XXXX , and submitted it to XXXX  shortly after. I was NOT INFORMED during my continuous communications that our mortgagee was going to be transferred back to Loancare, our prior servicer, on XX/XX/XXXX. Due to the holidays, XXXX  could not get the application processed before the buyout and transfer of our mortgage. On XX/XX/XXXX, XXXX  made their first request for all forms, including the W-9 , which needed to be filled out with the new servicer Loancare to approve the application. 
XXXX  had already finalized the payment amount in line with our arrearages and were prepared to release the funds via paper check as soon as the new documents were attached to our file. By the end of XXXX, XXXX contacted me and asked if I would get in touch with Loancare and request the records because they had failed several attempts. I sent my first email to XXXX in Loss and Mitigation on XX/XX/XXXX. XXXX provided all the papers but told me she had to put in a request for the W-9 due to it being in a different department. I began making daily phone calls and leaving specific proposals and recommendations, ensuring all were being recorded. Hold times were exceeding 1-2 hours each time I called. My frustration was at its peak. I also began sending emails around 7-10 estimating and finally received a W-9, two of them. They were the two W-9s that were filled out by my husband and me during the signing of the original mortgage and werent what we needed. So, I called again, and I was so angry, and now we are nearing the end of XXXX After my phone calls and emails and three days later, I received the W-9 and rushed it to XXXX. Because Loancare had taken over four months to get the W-9 to XXXX, we lost four months of funding to pay all the arrearages. 
Per the letter we received from Loancare dated XX/XX/XXXX NOTICE Loancare stated that the amount was {$17000.00}. XXXX  released a check for {$13000.00}. The difference of {$4000.00}, which is two months of mortgage payments that due to the delay of getting the W-9 to XXXX  in the time that was allowed, we lost {$4000.00} in funding. This is unacceptable. I sent over fifteen PROPERLY REQUESTED emails and phone calls to receive a one-page document that was URGENTLY needed and stated on EVERYaREQUEST SENT! It took Loancare four months to fulfill the request. At the beginning ofaXXXX, I received a NOTICE OF DEFAULT claiming that we now owe XXXX, the difference of {$7400.00}, from the Notice of right to cure the default and sixty days after the {$13000.00} payment had been cashed and applied to the balance. There is a problem with the numbers! Three checks were being sent from XXXX  for the mortgage payments from XXXX, XXXX, and XXXX. Then we were to pick up and resume future payments beginning in XXXX. 
The XXXX and XXXX payments were both cashed and should be applied to our mortgage. Still, I reaeived a phone call from XXXX  on XX/XX/XXXX, stating that Loancare had sent our XXXX payment of {$2100.00} back to XXXX  and said the loan was in default and they could not accept this payment because the balance had to be paid in full. ARE YOU KIDDING ME? Do you have any idea how angry this makes us? I immediately called and spoke to XXXX in Loss and XXXX, and she directed me to XXXX, the Team Leader of Resolutions. I was supposed to hear back from XXXX by XX/XX/XXXX, and I did not hear back from Loancare. I am requesting that this be investigated thoroughly. This is the NOTICE OF ERRORS formerly being sent. 

Payment Errors : Your company rejected XXXX  ' entire payment for XX/XX/XXXX for {$2100.00}. This was the final payment from XXXX, and we were to resume payments in XX/XX/XXXX. 
Your company did not appropriately credit the payments XXXX  made on XX/XX/XXXX, in the amount of {$13000.00}, XXXX payment of {$2100.00}, and XXXX  Payment of {$2100.00}. Funding was lost for any chance to receive the funds that were sent back to XXXX  from Loancare. XXXX  have closed our region for all future applications, which puts our loss of funding on an approved application over {$9500.00} due to the lack of diligence from Loancare and the mishandling of our mortgage. 
These funds from XXXX  should have had our arrearages paid, and we were to be caught up with nothing past due on XX/XX/XXXX ; your company failed to perform the request of the W-9 in time for us not to lose funds that were stated on each request and also failed to apply correctly and credit the payments XXXX  made in XXXX XXXX  and XXXX as of XX/XX/XXXX. 

I believe I am entitled to a refund of excess funds in my escrow account, and I have not received them because of misappropriated funds. 
Fee Errors : Your company incorrectly imposed fees on our account and was not allowed due to the Cares ACT and the global pandemic. 

Payoff Errors : Your company failed to provide the accurate mortgage payoff balance I requested in XX/XX/XXXX. 

I do not have much hope that this will be corrected properly without having an attorney involved representing us. I have stated in numerous conversations that we WILL NOT be subjected to entering another modification that will cause our mortgage rate to increase at any level. We were also eligible for the VA partial claim, which is what the VA Mortgage Representative stated in a group conversation that included Loancare, that should be done in the handling of the forbearance. Still, these amounts should not include any funds we lost due to the errors of Loancare. We shouldnt have to pay for the errors of our mortgage company. The hours I spent trying to get all of this worked out were useless after the mishandling by Loancare. I will be copying this to CFPB and with a lawyer during our consultation. If you need to contact me, I can be reached at ( XXXX ) XXXX or by email at XXXX. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX As of today, they have sent the notice of default. They HAVE NOT WORKED WITH ME TO SAVE MY HOME. In fact they are obviously working against me. They answered my XXXX but either the answers were part factual but missing main and vital information or just completely wrong information. I can not believe that XXXX isnt trying to stop this from happening. She knows that I have worked everyday to get the funding to keep us from losing our home. I can not understand how they sent a payment that I am holding in my possession for the XXXX  Payment and the XXXX  check that Loancare cashed isnt even posted on our loan. Every time they sent me a new letter it had a totally different amount that we owed that does not add up from the previous letters. They did not correct the errors and I know they violated THE RESPA> Please help me and stop this company from taking my home. I did everything that was required to have this home out of arrears and I don't understand the mess that has been made of this. How can this happen? 

We are currently being reviewed for the XXXX XXXX XXXX XXXX to help us now that they have stopped allowing us to pay any money towards our loan. We are waiting for the program to contact Loancare, but I will not be apart of the communications between the program and Loancare and I am scared that they will deny the funds from the program. I can not trust Loancare to do the right thing and I am afraid they are trying to intentionally steel our home from us. They have done NOTHING to show good faith efforts. They have done the opposite. Please HELP! 

I also have an email from the Data Manager at XXXX that was asking me to get the W-9 and he said he had another client that he had been trying to get the W-9 from Loancare from them for over 3 months and they were not going to be able to give that homeowner assistance because of the same issue. I want to know how many others are facing exactly what we are because of this transfer between servicers. Why would they do this in the middle of a pandemic? Knowing they could mess up loans and people could be victims of this? We can not let this happen in America. This is crooked and must be straightened out!!!

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