Consumer complaint received 2022-07-15
Company: LoanCare, LLC
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
My Mother passed away in XXXX XXXX and her home mortgage was with LoanCare , LLC. I am the executor of her estate. My sister lived with my mother and after her passing, she continued to live there but she got behind on making payments and in XX/XX/XXXX, Loancare said the past amount due of approx {$3500.00} would be due in full or we would need to sell before foreclosure proceedings would start. The decision was made to put house up for sale. I will describe below what took place, but our main complaint is the house was sold and paid off, but we feel there was an error on the payoff amount given and we should be refunded {$8600.00}. We paid the amount they requested just so we would not incur anymore fees but we want to dispute this payoff amount. 

**First pay off we requested and received from Loancare was dated XXXX in the amount of {$95000.00}... good through XXXX. ( This includes 1st principal balance of {$82000.00} plus {$8600.00} second principal balance plus {$2200.00} in interest and {$1900.00} in fees ) The loan had been in a previous modification/forbearance when my mother passed so the {$8600.00} mentioned above was past due amounts added to end of the loan. 

**Second pay off received from Loancare dated XXXX was in the amount of {$96000.00}... good through XXXX. ( This includes 1st principal balance of {$82000.00} plus {$8600.00} second principal balance plus {$2600.00} in interest and {$2000.00} in fees ) Please note we did NOT get to see this XXXX payoff until XXXX, long after sale of the home, when someone from Loancare finally emailed it to me as a result of a XXXX hour phone conversation with us disputing the final payoff given to us by their foreclosure attorney in the amount of {$100000.00}! 

**Home was sold in the amount of {$140000.00} and closing papers were signed with title company on XXXX. Title company 's fees/taxes/insurance/etc. were {$10000.00} ( see attached Sellers Statement ) leaving {$120000.00}. We found out at the closing appointment with title co. that they had not received the pay off amount from Loancare yet, so profit from home sale could not be distributed yet. We found that odd of a title company to close on a home without the payoff, but I guess thats another whole different complaint. 

**On XXXX we contacted Loancare ( spoke to XXXX XXXX to inquire about the payoff again, because the title company had still not received it from them. We asked to speak to a manager and were given to XXXX, Representative of Leadership. XXXX told us it had gone into foreclosure on XXXX and their attorney 's office would send the payoff to the title company. This was the first we had heard it went into foreclosure! We had stayed in contact with Loancare throughout, letting them know that home was up for sale, letting them know it had sold but we hadnt got pay off and always asked if we were still ok as far as foreclosure and were always assured it was ok. We were never notified in writing or by phone that it had gone into foreclosure. Once telling the title company this news, it also made them very nervous as well as they had paid out all of their fees/commissions. 

**On XXXX we received the final payoff quote from Loancare 's attorney, XXXX XXXX XXXX XXXX showing {$100000.00} as total. We knew there had to be an error because this number was way too high based on previous payoff quotes. 

**On XXXX I contacted the attorney 's office and spoke with XXXX XXXX and told him there was an error in this payoff. I told him it looks like the amount shown on their payoff letter under " principal balance '' was incorrect. All other supporting paperwork including XXXX, XXXX, XXXX and XXXX 's monthly statements and the XXXX and XXXX payoff statements from Loancare ( see attachments ) all showed the principal balance as {$82000.00} and " the second principal balance '' as {$8600.00}. It looks to me like that {$8600.00} was added to the principal balance in error and then listed again as the second balance. ( If you add {$82000.00} and {$8600.00} - it comes to {$91000.00} and this is the number they have stated as the first principal balance, but then the {$8600.00} was added again under second balance. ) These were the number totals in the attorneys payoff letter : ( see attachment for verification ) Principal Balance {$91000.00} ( notice that the above {$82000.00} & {$8600.00} add up to this number ) Second Principal Balance {$8600.00} ( we believe this was added to principal above and then listed again here ) Interest {$2800.00} Escrow Advance {$2500.00} Property Taxes {$840.00} Property Inspection {$20.00} Total Fees {$130.00} Accum. Late Charges {$110.00} Recoverable Balance {$92.00} TOTAL to Payoff - {$100000.00} ** On XXXX I called Loancare to ask about this error I believed had happened. I first spoke with XXXX and explained everything and she then transferred me to XXXX ( Agent ID # XXXX ). She didnt think there was an error but said she would have it looked into but would take 5-7 business days before they would get back to me. 

**On XXXX I contacted the Title company and told them to pay off the loan using the attorneys payoff figures because it expired on XXXX and I did not want to chance there being more interest and charges added to the total. I said I would just try to dispute it, if Loancare did not end up figuring out the error and refund what I felt would be due to us ( me and my 2 siblings ). 

XXXX XXXX Loancare received the payoff through an overnight package from title company. The title company did deduct the {$840.00} for property taxes ( see above figures ) because they paid them at the time of the house closing, ( see title companys attached seller statement ) so that was already taken care ofso the attorneys payoff to Loancare was taken from {$100000.00} to {$100000.00} and this is amount Loancare received. 

**On XXXX I contacted Loancare to see if anything had been figured out showing an error in the payoff as it had been well passed the 5-7 business days. I first spoke with XXXX and she confirmed it was paid in full now but did not see where any money was owed back. I then ask to speak to a manager and she directed me to XXXX and she also confirmed that they received payment in full of {$100000.00} and she did not see where any money was due to be refunded back. I explained what all had happened and explained in detail where I thought the error was and it just seemed as simple as the second principal balance of {$8600.00} was added twice once into the 1st principal balance and then again listed as 2nd principal balance. She could not see or seem to agree with me. She was doing some figures on the phone using the XXXX payoff and I told her I had been requesting the XXXX payoff several times and we only ever had the XXXX payoff and the title company couldnt get it either. So XXXX emailed the XXXX payoff copy to me that dayit showed the payoff balance then as {$96000.00} and sure enough it showed principal balance as {$82000.00} and second principal as {$8600.00} plus fees of which are figured into attorneys payoff. XXXX then started trying to figure what she thought payoff would come out as and she said since it was {$96000.00} through XXXX ( coincidentally the same day the house was closed on ) and it would be an added {$9.00} each day after that and would have been 22 days, totaling {$210.00}. So we both agreed that would only total to {$96000.00}. So she kept continuing to look and she started speaking of maybe it was corporate advance fees and maybe thats where extra money came from. I told her we had already spoke to XXXX at the THEIR attorneys office and asked if there were attorney fees to us or any other fees we werent seeing and he said they had already gone over the corporate advance fees and there was only the {$92.00} that they deemed as recoverable ( which is in the pay off quote from them. ) He also said in the state of Ohio, attorney fees are non-recoverable to the seller and are Loancares responsibility. We were on the phone with Loancare for XXXX hour and XXXX mins and still nothing had been resolved. She said she would continue to review it after we ended the call, but we have never heard anything back as of today XXXX. 

Im sorry this was long, but Im trying not to miss anything. Im hoping you can help us resolve this matter. As the executor of my Moms estate, it has been very stressful for me being the only one to deal with all these matters. This home was the only thing she had of any value and I just want to make sure my siblings and I receive what is owed to us. Thank you so much for your assistance.

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