Consumer complaint received 2021-12-28
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (VA)

On XX/XX/XXXX our home was involved in an arrson and a complete loss. We had planned to rebuild but upon finding out that the juvenile involved was no longer incarcerated we decided to move. Our insurance company did everything just as they should and the checks were forwarded to LoanCare ( for XXXX XXXX ) until the repairs could be made. The balance was put into a " special esgrow '' account for the rebuilding of our home. 

Once the decision was made to sell the property and use those funds and the funds in Special Esgrow to pay off the mortgage both the insurance company and LoanCare/XXXX  XXXX  were informed. 

The title company requested the payoff statement and we closed on the property on XX/XX/XXXX, I assumed that the mortgage company and the title company had things taken care of. As it turns out Loancare would only speak to me unless I called each morning to give them permission to speak to them but the exchanges were very limited. I have had to be the go between for Loancare and XXXX XXXX, I have no real estate of mortgage knowledge or training. 

I started phoning Loan CareXXXX XXXX Mortgage XXXX XX/XX/XXXX. My initial calls were to the XXXX number and was told that the money would be wired to the title company no later than XXXX XXXX, XXXX. I phoned again on XX/XX/XXXX to see why the funds were not wired. At that point I was transferred to a supervisor who informed me it was under review but should have an answer shortly. I phoned again on the XXXX XXXX and was transfered to Loancare ( the claims department for XXXX ). 

When speaking to Loancare I was told they would put the request in for the funds to be applied but I needed to submit a letter ( via email or fax ) that told them what I waned to do with the insurance funds. I was then transfered to the resolution department where I was told it would have to be reviewed and that it could take 5 to 7 days for review. I called them back everyday that were open through XXXX week and was told it was still pending. 

I called back on XX/XX/XXXX ( the 8th business day ) to check status and was told it was not 5 to 7 but 7 to 10 days for review even though there had been an request that they expidite this matter. 

I called back ( never speaking to the same person and being told I could not request to speak to a specific person and was also told that they ( Loancare ) had no way other that messaging to reach Management ) on XXXX XXXX, XXXX and was told there were no updates yet. I called back on the XXXX and XXXX, finally on the XXXX there was an answer, the title company simply had to pay their part and then the rest of the special esgrow would be released. I explained to them on several times that the Title company would not/ could not do that because it went against VA RealEstate laws. 

Loancare requested copies of the Sales Contract and the payoff statement. I sent those in immediatly, called each day until they were received on XX/XX/XXXX. I called back on XX/XX/XXXX and was told by the Resolution department that the exception was denied and that a new Exception would need to be entered, another 7 to 10 business days. I was contacted today once again to ask if the title company had submitted payment even though the exception entenered by Resolutions stated that they could not pay first. 

Here is our situation, its been a month and 1/2 since the property was closed on and The Buyers are tired of waiting. If this sale falls through we have spoken with our attorney and he will file against the company as soon as their policy causes the sale to fall through. 

My family of 8 has been displaced for over a year now, and our insurance funds for housing runs out in XXXX We can not look for a new home until this is settled and our availabel funds are running out. We just want to get on with our lives because the money to payoff the mortgage is there along with the title company, I don't understand why they can't get it together.