Consumer complaint received 2024-08-28
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: PLANET HOME LENDING, LLC (OH)

In XXXX of this year I filed a complaint with the Ohio Attorney XXXX office, utilizing the link for complaints on their website. The complaint was filed under Complaint Number XXXX, asserting misapplication of mortgage payments by Planet Home Lending. The complaint outlined several occasions where Planet Home Lending ( XXXX ) had misapplied all or part of certain payments made on the account. The misapplication of those payments was sufficient to place the account 2 months in arrears and generate over {$580.00} in late fees. Prior to filing the complaint with the Attorney XXXX office, numerous attempts had been made over a period of 3 years to resolve the problem with XXXX, but to no avail. Though I have received a copy of the rebuttal letter forwarded by XXXX to the Attorney General, I have yet to receive a response from XXXX XXXX, the Consumer Complaint XXXX at the Attorney Generals office, who was named in PHLs rebuttal letter. A letter from XXXX dated XX/XX/XXXX, stated that the Attorney General had closed the complaint, and though I have not heard from the Attorney Generals office, I have concluded that this matter needs to be escalated to the federal level. For that reason, I am now filing my complaint with the XXXX XXXX XXXX XXXX, in hopes of obtaining a resolution to this issue. 

Background. 
I have a mortgage with Planet Home Lending, which shows that I am 2 months in arrears with an accumulation of late fees. The XX/XX/XXXX, statement shows the amount due on XX/XX/XXXX, ( see Attachment F ) as follows : Principal and Interest : {$600.00} Escrow : {$610.00} {$1200.00} Arrears & Fees : {$2000.00} Late Fee : XXXX Sub/total = {$3300.00} Unapplied Funds : - XXXX Total Payment Due : {$2600.00} My complaint addresses the misapplication of my payments by Planet Home Lending, that brought about the {$2600.00} deficiency described above. For clarity in this complaint, misapplication is defined as any transaction that is not in alignment with the provisions of the XXXX XXXX XXXX. Accordingly, misapplied funds refers to a payments for which funds have been deposited in an incorrect account. 

Under the agreement, the principal and interest ( P/I ) for the duration of the loan was set at {$600.00} monthly. The escrow amount which started at {$260.00} monthly, was understood to change accordingly with any changes in the XXXX XXXX premiums and/or property tax. The total payment for principal, interest, and escrow was {$870.00} to start. The foundation of my complaint addresses XXXX important dates, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. Though there were other transactions in which funds were misapplied, the misapplication of funds on these XXXX dates established the negative balance on this account. 

Complaint. 
On XX/XX/XXXX, the payment due was {$600.00} for P/I and {$330.00} for escrow totaling {$940.00}. On XX/XX/XXXX, a payment was made in the amount of {$1000.00}. XXXX applied {$600.00} to XXXX, {$330.00} to escrow, and placed {$100.00} in Unapplied Funds ( XXXX ). The funds placed in XXXX were supposed to been credited to the next payment, which would have reduced the XX/XX/XXXX, payment to {$840.00}. ( See Attachments A & B ). The payments were posted separately on those XXXX statements. 

On XX/XX/XXXX, a payment of {$840.00} was sent in to cover the balance due for XX/XX/XXXX ; however, XXXX had removed the {$100.00} that was in the XXXX account, and failed to credit it to the {$940.00} amount due. When XXXX received the {$840.00} payment, they placed it in the XXXX account. The mortgage was then posted as being XXXX month in arrears, and a late fee was accessed. The {$100.00} that was in the XXXX account was misapplied to a recording fee that did not exist. The {$840.00} payment placed in XXXX was subsequently disbursed through additional misapplications. ( See Attachment B & C ) Misappropriation of funds refers to the illegal use of another persons money. While the person committing the offense was given lawful access to the money, it was used for their own purposes or another unauthorized use that makes it a crime. On XX/XX/XXXX, {$100.00} of the {$1000.00} payment made to XXXX, was used for the purpose of paying a recording fee which did not exist. ( See Attachment XXXX ) PHL repeated the practice of misapplying payments in XX/XX/XXXX, when they placed the XX/XX/XXXX, {$870.00} payment in the XXXX account. As of that date a total of {$1800.00} in payments had been placed in the XXXX account covering a period from XX/XX/XXXX through XX/XX/XXXX. Those funds were misapplied and used for other means including the payment of late fees that were not warranted. XXXX now wants me to pay the {$1800.00} that they misapplied, plus an additional {$250.00} in accumulated fees. ( See Attachment D ) Attachments : A ) PHL Statement XX/XX/XXXX B ) PHL Statement XX/XX/XXXX C ) PHL Statement XX/XX/XXXX D ) PHL Statement XX/XX/XXXX XXXX ) PHL Statement Modification Plan Terms F ) PHL Statement XX/XX/XXXX