Consumer complaint received 2022-12-08
Company: Village Capital & Investment LLC
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
My mortgage was sold/transferred to this company after 4 years with XXXX. The two companies are somehow connected as Village Capital & Investment ( XXXX XXXX XXXX  ) originally had my mortgage and told me XXXX was the " loan servicing '' company. My loan was transferred in XXXX of this year, XXXX, and they have yet to get my payment applied correctly first time. I have been able to work with them to get it corrected in all instances up until the XX/XX/XXXX payment which I have been trying to get the to correct since XX/XX/XXXX. I spoken with them at least ten times since that date, and I documented my last 7 calls to them. Prior to these tracked calls there were at least 3 previous calls trying to correct the misapplication of my payment. Here is the situation : My mortgage payment amount changed in XXXX from the previous month due to my variable rate loan. It dropped from {$910.00} to {$860.00} including Principal, Interest, and Escrow. I always pay extra principal as well, in the amount of {$1000.00}, and due to a shortage that I calculated in my escrow, I was paying an extra $ XXXX to that. As a result of XXXX XXXX XXXX 's inability to correctly apply these payments from one check, I was advised by them to send 3 separate checks indicating on them where each amount should be applied ( mortgage, principal, and escrow ). I did that in XXXX, and those three checks for {$910.00}, {$1000.00}, and {$7.00} were received on XX/XX/XXXX by XXXX XXXX XXXX Since my mortgage had dropped to {$860.00}, the amount paid for mortgage was over by {$47.00}. If that was the only issue, I probably wouldn't even care, but instead of having {$47.00} unaccounted for, they applied my payment in the following manner : {$860.00} ( which broke down to {$370.00} Principal, {$230.00} Interest, and {$250.00} Escrow ) for XXXX, another {$860.00} for XXXX, {$54.00} to Principal, and another {$160.00} to Principal. I saw this error on the XXXX, and called to notify them. They assured me at that time that they were still correcting for XXXX errors and that it would all be corrected shortly. After that call, I reviewed the detailed breakdown of the payments for XXXX and was certain that those had already been corrected, but that there were things I didn't understand all the way back to the beginning of my loan being transferred to them in XXXX, so on the XXXX I called again and spoke to another representative. That representative said, that she couldn't go back any further than 1 month to make any corrections or it would show my account as delinquent. I didn't believe her so I asked for a supervisor. She said a loan officer would be contacting me shortly. By the end of the day I hadn't heard back and I called again spoke with XXXX. I re-explained the entire situation, and she understood ( or so I thought ). She and I worked out that the balance through XXXX was correct ( although I am still not 100 % sure ) so we just needed to fix XXXX. I requested that only {$860.00} went to my mortgage, {$7.00} to my escrow, and the remainder ( {$100000.00} ) went to principal. She said " So you want {$860.00} to go to escrow, plus another {$7.00}? '' I said, " NO! Only {$7.00} to escrow and the rest to principal. '' She confirmed she understood, and sent an email to " XXXX XXXX  to make the changes, and told me to give them 3-5 business days to correct it. At that time I also sent an extra payment to principal of {$16.00}, that I had calculated I had shorted my initial payment in intended to make to principal, based on the adjusted interest rate that took effect XX/XX/XXXX. I reviewed my account a week later on the XXXX, and it was a mess. Between all their adjustments, payments and reversals, there were 9 separate entries on my account. The long and short of it was that they reversed the XXXX payment of {$860.00} and the principal payment of {$160.00}, and then put {$870.00} into escrow! and {$160.00} into principal. So I called on the XXXX and spoke to XXXX '. He seemed very clear on what needed to happen and said he sent an email to XXXX  to make the corrections and again to wait 3-5 business days to see that they had been applied correctly. He also instructed me on setting up autopay so there would be no more confusion on where the funds were to go. I decided I would set up autopay AND make an additional {$50.00} payment to principal and {$42.00} payment to escrow in order to simplify my payments moving forward. Unfortunately, when I entered my account number I left off a digit, and those payments also got reversed. So their online system would not allow me to change my account number in my autopay, so I had to fill out a form and email it to them, but eventually go my autopay set correctly. On the XXXX, I checked my account and nothing had changed, except they had received the {$16.00}, but it was sitting in an unapplied account and had not got to principal. So I called again and spoke to XXXX. He assured me that all the changes I had requested were in progress and would be completed by Monday. So I called back on Monday the XXXX, and spoke with XXXX. She was very confused by all the misapplications, payments and reversals, but but since nothing had changed, she sent yet another email to XXXX  to resolve the issue. On reviewing my account on the XXXX, nothing had changed, so I called again and spoke with XXXX ( whom I'd spoken to in one of my first 3 undocumented calls ). She said that due to all the adjustments on my account it was very difficult to understand the changes and suggested I send an email directly to XXXX Attn : XXXX  explaining everything and telling them what I wanted. I sent that email on the XXXX, and received a reply on the XXXX. That reply stated that they would be sending my email to Call XXXX XXXX... The people who told me to send the email directly to XXXX! Then I received another reply to my email on XX/XX/XXXX saying they were forwarding my email to XXXX  .... On the XXXX I spoke to XXXX ' ( again ) as the only thing that had changed was that the {$16.00} payment I had send was finally applied to principal on the XXXX. He said he was very sorry, and that maybe the changes were still in progress and to call back late the next day. I contacted XXXX on XXXX. XXXX actually worked in escrow, but was covering the phones for the call center. I explained to him that all I wanted at this point was the {$870.00} that was put into escrow to be moved into my principal. He sent another email to XXXX. Today on the XXXX, I check my account and nothing has changed! I called again and spoke to XXXX and she said all she could do was send another letter to XXXX  and there was nothing else I could do. So I decided to file a complaint.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation