Consumer complaint received 2022-03-09
Company: United Shore Financial Services, LLC
State: TN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
On XX/XX/XXXX, we completed a refinancing on our house at XXXX XXXX XXXX, XXXX XXXX, TN XXXX. This new loan is held by United Wholesale Mortgage, and the loan number ends in XXXX. The loan that was to be paid off by the transaction was, at the time of closing, also held by United Wholesale Mortgage, and the loan number ended in XXXX. 

On XX/XX/XXXX, after the closing of the refinance but prior to the payoff posting, XXXX XXXX was transferred to a new servicer, XXXX XXXX. Also on XX/XX/XXXX, the funds to pay off Loan XXXX were delivered to United Wholesale Mortgage by the closing company, XXXX XXXX XXXX. As servicing of this loan had since been transferred, the payoff was forwarded to XXXX XXXX. 

According to XXXX XXXX, they rejected this payoff as the funds provided did not match what their records showed the correct payoff amount to be. They have been unable to provide me with an explanation as to why the initial payoff quote from the refinancing was not honored. XXXX XXXX further states that the funds were then returned to United Wholesale Mortgage, as that is where they originated from. 

The end result of this is that Loan XXXX is still active with XXXX XXXX with a balance around {$310000.00}, and Loan XXXX is active with United Wholesale Mortgage with a balance around {$340000.00}. I have two mortgages that both purport to be the first priority mortgage on my house when only one should exist. To this point, no one at United Wholesale Mortgage has been able to tell me what has actually happened to the {$310000.00} in funds that should have paid off the original loan. 

Quite frankly, no one at United Wholesale Mortgage even seems all that interested in finding out what happened to the funds or helping me to solve the issue. I have spent countless hours over the last several weeks trying to resolve this issue to no avail. On different occasions, I have been told that the funds were returned to UWM and just needed to be reissued to XXXX XXXX, that the funds were never retuned at all by XXXX XXXX, and that the funds were returned but were sent all the way back to XXXX XXXX XXXX. To say that I now have doubts about the competence of your customer service is a severe understatement. 

XXXX XXXX is adamant that they no longer have the funds from the transaction. They are also still holding XXXX XXXX as an active loan. As I have not made a payment on it since the refinance took place, they also now consider me to be in default on this loan. I worry that, because this loan still has first priority as a mortgage on my house, they will eventually attempt to foreclose on it if I do not begin paying them. I have avoided that at this point because I worry that it will muddy the waters even further. 

I have begun making payments on XXXX XXXX to United Wholesale Mortgage, as this should be the active mortgage on my home. I do not make enough money to make payments on XXXX XXXX and XXXX XXXX simultaneously. If XXXX XXXX continues to press the issue that I am in default with them on a first priority mortgage, I will likely have no choice but to cease making payments to United Wholesale Mortgage on Loan XXXX and begin making payments to XXXX XXXX on Loan XXXX. Again, I would prefer not to do this as I worry it will only complicate things further. 

I need United Wholesale Mortgage to definitively tell me what happened to the funds from my refinance. My best guess is they are currently being held by United Wholesale Mortgage, since both XXXX XXXX and XXXX XXXX XXXX are adamant that the funds are not in their possession. Once the funds are located, I need assistance in getting them to XXXX XXXX to clear the balance of XXXX XXXX. This loan has also continued to accrue interest for the last XXXX months, which will need to be addressed and should not be my responsibility. 

I have attempted to solve this issue for weeks now.

Company response to consumer: Closed with explanation