Consumer complaint received 2021-04-29
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (FL)

In XXXX of XXXX, my Flood Insurance failed to renew. Unfortunately, I did not receive US mail communications because we were not staying at the home after XXXX XXXX. XXXX, I noticed that my mortgage payment increased by {$500.00} so I contacted LoanCare to understand the change. Initially I thought my payments were late and gave it a few months before I actually took action. I did request a refund of the late fees and that request was acknowledged ( they received my email ) and completed it properly, although nobody contacted me with an update. I had to log-in and review the transactions to determine my request was processed. 

I inquired about why my payment increased and the representative discussed escrow transactions. Simply reading the Escrow payouts which did not explain WHY the monthly payment increased. I was told the escrow allotment increased, but they did not tell me it was because my flood insurance policy did not renew and a lender imposed flood policy was purchased for {$2200.00}. 

It took me several weeks to research by making multiple phone calls and submitting email requests - I was left to figure it out on my own. Once I determined the issue, I took immediate steps to purchase a new policy and update my account. 

I had to work with the insurance department and they were more responsive than your general customer service. Definitely more competent and willing to help a customer figure things out. I did what I was told, I took out a policy, PAID for it and submitted the correct information/proof the policy had been purchased and paid in full. I thought I was done, but no, I later realized that LoanCare took money from the Escrow and paid the policy premium a second time. Remember, my goal at this point is to have the mortgage payment revert back to the original payment amount. 

By this time, I moved on to fixing my next problem, which was ensuring the refund from the lender imposed policy was deposited back into my escrow account. I was told over and over that it would be sent directly to me - which it clearly wasn't. I reached out AGAIN via email asking that the funds go directly toward my escrow account, which they did, however the amount of the refund was shocking. LoanCare representatives contributed to lengthening the # of days the policy was in place, reducing the prorated refund daily. Not being helpful to resolve my issue, I paid {$1000.00} of a {$2200.00} policy which typically costs {$500.00}. I received a refund of a little more than {$1200.00} ( rounding numbers of course ). If LoanCare representatives would have assisted me in XXXX when I first inquired, I would have resolved this issue in just days. I feel it is only right that LoanCare recalculate the prorated insurance amount to reflect a cancellation date of XX/XX/XXXX ( or reasonable date ) since it was my fault for not taking more effort to check my mail back in XX/XX/XXXX when the Flood insurance did not renew. Essentially, because of the lack of interest in helping I actually paid {$1500.00} for a {$500.00} policy as a direct result of the customer service received. 

Contacting LoanCare : XX/XX/XXXX - Ticket number XXXX, sent email when I discovered my regular schedule auto payment was not covering my monthly payment. Response received the same day advising late fees were refunded, but still did not realize my payment had increased. 

XX/XX/XXXX - Ticket number XXXX, I sent an email asking why another disbursement was paid for flood insurance when I already purchased the policy as instructed by the insurance department. XX/XX/XXXX, my email was responded to with a generic message advising me to contact the insurance department. 

Made contact via telephone asking that insurance policy refund be applied to my escrow account. 

XX/XX/XXXX - Ticket number XXXX ( not sure why I received 2 different ticket numbers ) - sent an email stating the refund was not applied to my escrow but instead was applied to the principal. I asked to correct this and apply the funds to my escrow balance. I received a response asking me to contact LoanCare via telephone ( which I did ). 

XX/XX/XXXX - Ticket number XXXX, discovered that insurance policy refund was applied to my next payment vs my escrow account. Sent a lengthy detailed email about all the issues I had encountered and the lack of response to assist. Which I did not receive a call back. At this point, I had a new issue ( my fault ) because I attempted to update the payment amount with my financial institution, but inadvertently made a second payment. I asked that this be refunded back to my financial institution, but my request went unanswered. 

XX/XX/XXXX - contacted LoanCare via telephone and requested to speak to a manager. A manger did call back, but the connection was so bad I could not make out what she was saying. I immediately followed up with an email describing what happened and asked for a call back ( ticket number XXXX ) which went unanswered via telephone and email. 

XX/XX/XXXX - contacted LoanCare via telephone. expressed my concerns AGAIN. Asked to speak to a manager AGAIN. I was on hold for most of the 27 minute call before I hung up. 

I think it is very clear that I was diligent about rectifying the issues with my account and get the monthly payment back to a manageable amount. LoanCare servicing is HORRIBLE and during this pandemic has put additional strain on my financial situation and cost me money I could not afford to payout and now, will not receive back.