Consumer complaint received 2022-04-06
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (TX)

I am writing you today about my experiences with Loancare , LLC, the carrier of my mortgage. 

I had a mortgage with XXXX, which was originated years ago from XXXX. After XXXX folded, I found my new Mortgagor was Loancare. I did not specify an escrow account since XXXX ; I always paid my taxes and insurance myself. The reason why is because mortgagors would raise my payments due to projected increases in property values, which would raise my property taxes and insurance, whether these values were reflected in actual values or not. I also wanted to insure such payments were actually made. 

I protest my taxes yearly to make sure my taxes are as low as possible. After Hurricane Harvey in XXXX, this region was devastated. Public services were interrupted because facilities were flooded. This went on for some time. Backlogs of property protests were high, because many were not able to repair their homes. Protests had to be filed by XX/XX/XXXX, but cases were not heard until XXXX or later. 

My XXXX protest was in XXXX XXXX. I was successful. I did not know that the property taxes would not be reflected later. Many years ago, I requested to pay my property taxes by XX/XX/XXXX and by XX/XX/XXXX every year, at least half of the amount at a time. I have done so ever since, and never miss. I also have XXXX XXXX Taxes due on XX/XX/XXXX, again, I pay them in person, I never miss. These things are just too important. That XXXX, I took cash to the Tax Office. At my turn, the teller took an unusually long period of time to reconfirm the amount. She said my taxes were zero. 

This has happened to some, and I have received refunds of overpayments. The teller said that because I had a protest, the tax had not yet been computed. I said I was on semiannual payments, my taxes were due very soon, so she pulled up my record of taxes due and taxes paid and showed me where the amount was zero. I knew if I paid money, I would get a check back in a month for that amount. She said that it was not possible to know when they would have an amount to pay because the tax rates were not yet set. I left with my cash and the printout, then redeposited the money back into my tax account. I did pay my school district taxes on XX/XX/XXXX as was my custom. 

I received a larger than normal invoice for mortgage payment for a couple of months. I paid the minimum, thinking that there was some mixup and the amount would corrrect itself. I contacted Loancare who told me that I was being charged for flood insurance. My property changed flood designation and I did not know it. I followed the direction to get flood insurance or Loancare would get it for me at a premium. I discovered about the requirement in XX/XX/XXXX, and proceeded immediately to obtain insurance through my homeowner policy. They required an elevation certificate at a cost of {$400.00}. I scheduled it for an appointment the same week. It took three weeks to get the actual certificate. At the same time, I requested another quote from another vendor. THEY did not require an elevation certificate. These things took time, about three weeks. XXXX sold me a policy dated XX/XX/XXXX, which would take effect 30 days later. 

Loancare accepted my insurance and lifted the extra payments except for {$390.00}. They said they had bought coverage and had to charge for that period. I never saw a policy. I also explained that had purchased flood insurance the day I received the letter, it still would not have taken effect for 30 days. They were adamant, so I paid the {$390.00}. 

My payments went down to the nominal {$740.00} for a few months early in XXXX. Then it jumped to {$1200.00} where it has stayed. I called to ask why. The agent explained that I had an escrow account and that it paid my property taxes. I explained that my contract did not have a provision for an escrow account. The agent said I didnt pay taxes in XX/XX/XXXX ; I explained the above and offered to send a copy of the printout to Loancare . The agent could not explain a refund to Loancare from XXXX XXXX. My account seemed to indicate a positive balance because they overpaid. They overpaid because I eventually paid the 50 % of my tax bill when they sent it to me. The agent explained that I needed to send a simple letter to the company on its website that I requested there be no escrow on my account because I pay the taxes and insurance myself. I would get a letter in ten days that I would not have to have escrow applied. I had to talk to an agent there more than once. I never received that release of escrow. Each time the agent explained the above, I followed the instructions to no avail. 

In XXXX XXXX, I received a letter stating that Loancare paid my school taxes. Recall I do not have to pay until XX/XX/XXXX. 

I also want to report another incident. The grace period for my payment for XX/XX/XXXX was fifteen days past the due date of XX/XX/XXXX, or XX/XX/XXXX. This year, XX/XX/XXXX fell on a XXXX  The nexXXXX XXXX was MLK Day, a federal holiday. The phone payment prompts clearly state that if the end of the grace period falls on a weekend or federal hoiiday, the payment is due the next business day. I paid it on the next business day, XXXX XX/XX/XXXX. I was charged a late fee of {$37.00}. When I explained what I just recounted, the agent said that had the payment been paid on the XXXX, it would not have incurred the late fee. I asked what government agency had oversight over their operations. The agent declined to tell me, and offered to refer me to the Escalation Department. I declined and paid the two dollars. Their recording should indicate that they refused my request for the name of Loancares regulating agency possibly three times ( since I knew my call was being recorded, I asked several times ). 

Being fine people, you can see I have gone as far as I can go. I pay my mortgage. I pay my property taxes. I pay for insurance. These are not extraordinary acts so I do not need a medal. I pay them myself so there can be no doubt that they get paid, since some mortgage resale companies have left unsuspecting homeowners holding the bag because they absconded with funds entrusted to them. However when I do what Loancare has asked of me, they respond with no response. I imagine they hear people say they are fed up and ignore them ; they know that nothing will change until the homeowner has the money to pay it off. They also know they have eight hours a day to slow-roll, to stonewall, to delude, while most of us have a job and a full schedule that discourages them from acting on any thoughts they have of legally taking the matter further. I am asking to have the escrow account eliminated and any amount in it returned to me, not deducted from my payoff. I demand my {$37.00} in trumped-up late fees again, paid to me directly. I also want the {$390.00} back for so-called flood insurance. I have no policy, even if they produce one, is it signed by me? I want any damage to my credit repaired immediately. 

I affirm, under penalties of perjury, that these statements are true to the best of my knowledge and belief. 

Thank you for your time. 

PS. XXXX XX/XX/XXXX, while finishing this letter, I received an email with a notice on my escrow analysis, a year after I first asked for a review! My position, however, remains firm.