Consumer complaint received 2019-12-09
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (MI)

I have had multiple issues with LoanCare Mortgage Servicing since the first payment and have tried to resolve and have been met with no response or answers that are either incorrect or unacceptable. The first issue is with my voluntary escrow account to pay taxes and homeowners insurance. I received my first tax bill and the bill indicated there was no escrow account on file. I called LoanCare who indicated they had no record of escrow. I had to send my mortgage closing paperwork to prove I had set up an escrow account for taxes and insurance. I advised the LoanCare rep I was going to pay the taxes and requested my escrow account closed because I lost confidence in their ability to handle. I was told to submit request in writing, which I immediately did. I checked my account a week later and saw the escrow info updated, and a tax distribution amount scheduled to be released on XX/XX/19. The amount was nearly double the amount of my tax bill. I called and spoke with a LoanCare rep, and advised I had already paid the taxes; however, the tax amount scheduled to be disbursed was incorrect, and I had already sent in my request to cancel my voluntary escrow account. I was advised to submit my request to cancel my escrow again. I told the rep I would do so; however, I was very concerned over the amount scheduled to be disbursed to the tax authority since the amount was wrong and the correct amount was also incorrect. I was told to include that info in my request to close my escrow account. Two weeks after my three requests to close my voluntary tax and insurance escrow account and return the funds in the account I received a small check with a notice that an escrow analysis was completed and the check was the excess funds. I again called LoanCare since I did not request an analysis, I requested my money be returned and payment adjusted as I would pay my taxes and insurance outside of my mortgage payment. LoanCare advised me I would need to submit my request in writing, which I would end up doing several more times. Instead of returning my money, they disbursed the money to the tax authority. This created a new problem as I would now have to fight with my local government to get a refund. I am still fighting to have my tax and insurance escrow account closed and the balance of the account returned. Now a new issue due to LoanCare’s incompetence. I set up automatic payments be posted to my account on the 1st of each month and the funds to be debited from my bank account. I was advised to continue making my monthly payment manually until auto payment became active. I checked the date of my first scheduled auto payment and it indicated XX/XX/XXXX. On XX/XX/XXXX I double checked my LoanCare account to ensure a payment had not been made and make my usual payment. As anticipated there was no payment posted for XXXX XXXX and the information listed under “manage auto payments” had the date of auto debit listed as XX/XX/XXXX. I even triple checked and called the auto line which provided the date of my last payment as XX/XX/XXXX and next payment due as XX/XX/XXXX I made my payment on XX/XX/XXXX. I received an alert from my bank that my balance was under $2,000.00. I set up an alert on my bank app to send a text should my balance fall below an amount of my choosing. I immediately checked my bank account to find LoanCare debited over $6200 from my account between XX/XX/XXXX. I immediately called LoanCare to have them return the duplicate payment. They advised me they would not be able to return the funds without the request being put in writing. I sent an email requesting the return of the duplicate payment. I called back and was told I also needed to include proof the funds came out of my back. I immediately sent my bank statement and even highlighted the two debits. I asked how long it would take to have the funds put back in my account. I was told 20 days!  Here I am weeks before XXXX and because of LoanCare’s incompetence I have $XXXX (the XXXX loan payment + duplicate tax payment) than I would have in my account. That money is not all disposable income, much of that money was in my account to cover bills. As of right now I have $XXXX in my account with approximately $XXXX scheduled to come out in the next week. Thankfully I will be paid and hopefully be able to cover all the auto payments scheduled; however, this time of year also comes with additional expenses. LoanCare has possibly destroyed my kids XXXX. I attempted to contact my credit union in an effort to expedite the money being returned as I did not authorize two payments for XX/XX/XXXX. I informed LoanCare I would be contacting my bank in an effort to expedite the return of funds and requested a note be put in the system so LoanCare would not fight the disputed charge. I learned this afternoon LoanCare replied to the bank that the funds debited were due and authorized. This is completely false. If you look at my account shows the two payments and the next due date as XX/XX/XXXX. This Mortgage Servicer needs to be held accountable for their actions. They have refused to close my VOLUNTARY escrow account claiming they are allowed to retain my funds due to the amount of equity I currently have in my home (under 20%). That is so far fetched and untrue I don’t know where to begin. I cannot cancel PMI with under 20% equity, but I never asked or even mentioned canceling PMI. I simply want to manage my own money and will pay my taxes and insurances on my own. Additionally, I want the duplicate payment debited from my account returned immediately- not after XXXX and when the payment they are returning would be due.