Consumer complaint received 2022-08-06
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (FL)

My husband and I refinanced our home in XXXX with XXXX XXXX XXXXXXXX XXXX. The bank, falling under the XXXX umbrella, who obtain our refinanced loan, was XXXX. In the summer of XXXX, our loan was sold from XXXX Bank to Loancare, another bank falling under the XXXX umbrella. We received a notice on or about XX/XX/XXXX, stating we did not have homeowners insurance when we in fact had insurance with XXXX XXXX XXXX XXXX through XXXX XX/XX/XXXX. On or about XXXX XX/XX/XXXX we received another notice stating to disregard the previous notice as we had insurance. We did not hear anything from Loancare until XXXX of XXXX, nearly a year later, stating we do not have insurance and that we were erroneously being placed on forced protection from XXXX XX/XX/XXXX to XXXX XX/XX/XXXX, even though we had a valid insurance policy with XXXX XXXX XXXX XXXX through XXXX XX/XX/XXXX. Within a week, we received two other notifications about being uninsured, and forced placed protection. At that time, we contacted the bank for clarification and contacted our previous homeowners insurance company ( XXXX XXXX XXXX XXXX ). We had homeowners insurance through XXXX XX/XX/XXXX at which time XXXX XXXX XXXX XXXX never received an insurance payment from Loancare. After 90 days, our policy was cancelled due to nonpayment. All the while, we had been paying our mortgage which included the escrow amount to cover our insurance, and never received any correspondence from the bank stating we were uninsured or that there was an issue with our current policy. We have contacted the company nearly 20 times within the past couple of weeks with no resolve. Each person we speak to asks to hear the story over and states someone will get back to us in 3-5 business days after they have time to review our account. We hear back in 3-5 days, but it hasn't been with resolve, rather, asking what our issue is AGAIN. In the meantime, we have had to find a new homeowners insurance company to cover our home. Due to the lack of coverage ( unbeknownst to us ), the only insurance we can obtain is state insurance through XXXX. We had to have a wind mitigation and 4-point inspection done costing {$300.00}. Something we would not have needed had there not been a lapse in coverage. We have never missed a mortgage payment, nor have we ever made a claim against our insurance. Additionally, our new insurance premium is approximately {$2500.00} more than our previous policy with XXXX XXXX XXXX XXXX which includes a {$850.00} surcharge for high risk due to lack of coverage. Also, due to the lack in coverage, the soonest our new policy could start is 30 days from the time of phone call, meaning our beautiful home, valued at over $ XXXX is unprotected during the peak hurricane season. There were a couple of representatives from Loancare who took the time to try to help figure out what happened. They read through all the notes and dates notifications were sent and what they were. Both realized our account was not handled properly but had no " power '' to really do anything to help. One did contact XXXX XXXX XXXX XXXX to attempt to reinstate our old policy, but too much time had lapsed on our old policy, and they no longer write new policies in the state of Florida. She also attempted to have any negative repercussions towards us removed with our new company ; however, she was not successful, and we were forced to wait the 30 days and pay the {$850.00} surcharge fee. Another representative opened an audit of our account, stating the audit team had 3-5 days to review the account and get back to us. This was at least two weeks ago, and we still have not heard what the audit team discovered, if an audit was even done. All the time spent on the phone, no coverage on our home, and extra expenses, all without resolve has resulted in lost hours at work, frustration, made to look like consumers who do not pay their bills, and severe XXXX for both my husband and me. Due to the seemingly gross mishandling of our account and the additional run around the past 3 weeks, we are highly disappointed with the company and request a prompt resolve to the issues at hand.