Consumer complaint received 2022-08-30
Company: LAKEVIEW LOAN SERVICING, LLC
State: OR
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I applied for a mortgage forbearance with XXXX XXXX effective XX/XX/XXXX I opted to extend it for a year total. 
I opted for a Loan Modification, it took time for them to send the paperwork and schedule a notary, modification was official in XX/XX/XXXX and XXXX XXXX told me to make payments while it was being processed. I made payments for XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. During this time the modification was not officially implemented. I called every month to check in with everything and make my payments. I made the exact payment they told me to make over the phone. 

In XX/XX/XXXX I receive notification my loan is being sold to Lakeview XXXX XXXX. Lakeview XXXX XXXX tells me I need to make payments while the paperwork is processed. I call 1-3 times a month checking on it and making the monthly payments they told me to make. The modification is not processed until XX/XX/XXXX. I made every monthly payment during this time. I called every month to escalate getting my modification processed. 

In XX/XX/XXXX Lakeview XXXX XXXX says I owe an overdue balance of {$3000.00}. I call and tell them this must be an error because I have made every monthly payment. I called twice a month from XXXX - XXXX. They said they were working on the error and escalating the issue. I make every monthly payment during this time. 

Then in XX/XX/XXXX they report me as delinquent to the credit agencies and this destroys my credit. It was above 800 and now is around 650. I call again and again and they said they can't tell me what they issue is and are continuing to escalate the issue. I had a few times where they promised to call me back when they had more info, and they never did. I keep calling and making my monthly payment and asking on more info on the issue. 

I call again in early XXXX to push the situation further because my credit score still shows as delinquent, even though I am making every monthly payment. I reach someone in the customer service department that researches these sorts of things. They tell me that XXXX XXXX applied 2 payments I made at the end of XXXX into " unapplied funds '' instead of applying it to a payment. This is the first time I have ever heard of " unapplied funds '', when I made the payments with XXXX XXXX over the phone they said it was being applied to the payments. So those came over to Lakeview XXXX XXXX as unpaid months. He tells me there is nothing that can be done to correct this and I have to pay the overdue balance to make my account current. I empty my savings to pay this overdue balance as I want it corrected with the credit agencies. I now think this nightmare is over. 

Then I receive a letter XX/XX/XXXX from Lakeview XXXX XXXX that my account is past due. I check online and the entire loan modification has been reverted back to the old interest rate and with around {$20000.00} due. I call Lakeview XXXX XXXX immediately. They tell me there was an error with my modification but can not tell me what the error is. They said they need to reach out to XXXX XXXX and re-do the whole modification. I push them that this needs to be resolved. I ask about the {$3000.00} XXXX paid in XXXX, that was on top of my monthly payment that I also paid, and they said that will be put in " unapplied funds '' and put towards the principal. At this point I am absolutely furious. I emptied my savings to pay this to get my account corrected and credit score corrected. I tell them that they MUST apply this to either future payments or refund the amount. They note that is my account but say they can not guarantee it. They say I shouldn't make my XX/XX/XXXX payment as it will likely end up in " unapplied funds ''. And that I need to wait. But they have been telling me this for 8 months, they tell me over and over that it will be processed in 10 days but it's been months at this point. 

This has been 8 months of XXXX, and almost a year if you count in XXXX XXXX as well. I signed my modification and have made every single payment to both companies. I even paid the $ XXXX overdue balance that wasn't an actual overdue balance.

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