Consumer complaint received 2024-01-18
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: LoanCare, LLC (AL)

SUBJECT : Incorrect 2023 Tax Check for {$3000.00} Sent by Loan Care to XXXX County Tax Assessor for Property Located at XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX County Tax Assessors Office issued an incorrect XXXX tax bill of {$3000.00} in error to Loan Care for the above referenced property. On XXXX XX/XX/XXXX, XXXX XXXX at XXXX County Tax Assessor Office ( phone number XXXX ) acknowledged the mistakeXXXX County Tax Assessor Office had madeand issued twocorrected {$0.00} tax owed bills to Loan Care on XXXX XX/XX/XXXX. 

Enclosed are XXXX County XXXX Account Number XXXX Property Tax for parcel XXXX ( XXXX  XXXX ) and for Parcel XXXX ( XXXX  XXXX ) .Both documents show {$0.00} tax liabilityfor XXXX, XXXX and XXXXowed for both parcels that comprise my property.These correctedXXXX County TaxBillsfor my property were uploaded to the Loan Care website on XXXX XX/XX/XXXX by myself. 

Iam a 100 % XXXXXXXX  veteran ( since XXXX ) with a tax exempt status ( H3 ) at XXXX County in Alabama and I pay XXXX in taxeson both parcels on my propertysinceI bought it inXXXX. I do not have to reapply for this tax exempt status every year at XXXX County. The H3 tax exemption status is for as long as I own this property or until I revoke it as perState of Alabama Department of Revenue Section 40-9-21.1 Homestead Exemption Act of 2013 ( XXXX XXXX ) .I uploaded myORIGINALXXXX County Tax Assessor Office tax exemption documents to Loan Care website on XXXX XX/XX/XXXX and was given Loan Care ticket XXXX.Loan Care has had the tax exemption documents since XXXX XX/XX/XXXX. 

On XXXX XX/XX/XXXX, the Warranty Deed for the property hadbeen place into XXXX  XXXX XXXX XXXX Countyof which I am the XXXX ( XXXX XXXX ) .A copy of the new Warranty Deed in XXXX  XXXX XXXX as well as relevant Declaration of the XXXX XXXX ( XXXX  XXXX ) and Certification of XXXX XXXXXXXX XXXX ( XXXX XXXX ) were also uploaded to the Loan Care website XXXX XXXX. 

The following are documented phone conversations and activities that I have conducted and recorded on written phone logs about this XXXX propertytax issueI have discussed with Loan Care since XX/XX/XXXX : XXXX : After I got a credit alert from XXXXthat my loan balance had incorrectly increased from {$160000.00} to {$160000.00} ( XXXX  XXXX ), I called Loan Careon XXXX XXXX XXXX find out what was going onbecause I am never late on my mortgage and my insurance remained the same from the year before. 

Loan Care stated they have included the incorrect tax amount of {$3000.00} into the loan balance. I advised Loan Care that I uploaded the corrected XXXX  County Tax documents showing {$0.00} tax for the two parcels on my property back on XXXX XX/XX/XXXX and Loan Care should never have paid any tax on my property as I am XXXX XXXX XXXX XXXXXXXX as rated by the Veterans Administration and Social Securitysince XXXX. Iadvised Loan Care that Ihave had the H3 designation on my XXXX County Tax Assessors account since XXXX and a copy of the document was uploaded on XXXX XX/XX/XXXX on the Loan Care website ( XXXX ). 

I advised Loan Care to remove the tax from my property immediately and I was told a case would be opened and it would be resolved. 

XXXX XXXX : Loan Caresends an email stating that the IRS 1098 Tax statements for XXXX are available on the Loan Care Website. This is when I learn that Loan Care sent an incorrect tax payment of {$3000.00} to XXXX County Renenue Commission as it shows in the IRS 1098 form for XXXX. I also learn for the first time that on XXXX XX/XX/XXXX, Loan Care conducted anew Escrow calculation for the property, ( I was never notified of this by mail or email ) which included the incorrect tax amount of XXXX ( XXXX  XXXX ) .This incorrectly causes my mortgage payment to increase from the correct amount of {$1000.00} ( XXXX ) to a significantlyhigher incorrect amount of {$1600.00} with the first payment due on XXXX XX/XX/XXXX. 

I spoke with Loan Care on XXXX XX/XX/XXXX at XXXXXXXX XXXX on phone number XXXX and was advised that Loan Care sent check number XXXX for {$3000.00} to XXXX County Tax Assessors Office on XXXX XX/XX/XXXX in error. 

I advised the following to Loan Care on the phone : Both parcels on my property have been XXXX XXXX tax exempt since XXXX and that the documents were uploaded to the Loan Care website since XXXX XX/XX/XXXX. I uploaded the corrected XXXX County tax bills showing {$0.00} owed on XXXX XX/XX/XXXX and that Loan Care should never have sent a {$3000.00} or ANY amount at all since I am 100 % tax exempt on both parcels on my property. 

I advised Loan Care that will not be paying any additional mortgage amount for escrow of XXXX County taxes I do not owe going forward either. My monthly payment to Loan Care is {$1000.00} ( Principle {$320.00} + Interest {$480.00} + Escrow of Home Insurance and PMI {$200.00} ) and that is all that will be sent for at least the next year unless my property insurance increase or decrease when it renews next year. Loan Careis alreadyreportingan incorrect loan balance toall three credit reporting agencies in violation of FCRA. If Loan Care reports any late paymentor incorrect mortgage payment amountsin excess of thecorrectmonthly payment of {$1000.00}, I will take legal action and I will be paid damages as allowed under the law under FCRAand RESPA.I advised them they can consider this statement aformal notice of awarenessto Loan Careand any negative impact to my credit will be considered willful and deliberate. 

XXXX XX/XX/XXXX : I spoke to XXXX XXXX at XXXX County Tax Assessor Office on XXXX XX/XX/XXXX at XXXX am ( phone number XXXX ) who stated that XXXX County refused the {$3000.00} payment from Loan Care and sent it back to Loan Care because the account is XXXX $ in tax due since XXXX XX/XX/XXXX. 

XXXX XX/XX/XXXX : I spoke with XXXX ( ID Number XXXX ) at Loan Care at XXXX on XXXX XX/XX/XXXX on phone number XXXX and advised her that the {$3000.00} they incorrectly sent to XXXX County on XXXX XX/XX/XXXX was returned back to Loan Care as stated by XXXX XXXX XXXX XXXX County Tax Assessor. XXXX states that Loan Care does not have the money back so I gave her XXXX XXXX phone number at XXXX County Tax office XXXX to discuss the {$3000.00} that XXXX County refused payment on my account because I owe no tax on my property. XXXX started an escalation case on my loan. I advised XXXX at Loan Care to get in direct contact with XXXX County Tax Assessor Office as the matter is between them now and I have done my part. This is not my problem. 

XXXX XXXX : A NOTICE OF DEMAND LETTER FOR FCRA VIOLATION letter ( XXXX ) was sent to both Loan Care at their XXXX  XXXX, VA address ( XXXX ) as well as their process server XXXX  XXXX in XXXX XXXX, Virginia address ( XXXX XXXX ). 

XXXX XX/XX/XXXX : I spoke with XXXX XXXX who handles all mortgage tax payment at XXXX County Revenue Commission XXXX at XXXXXXXX XXXX. She also confirmed that a check sent for payment on an account at XXXX County such as mine are not processed, NEVER CASHED, rejected andsent back to the originator which she stated would be " XXXX XXXX in XXXX, Texas or back to Loan Care in XXXX, XXXX XXXX County does not keep a record ofrejected taxcheckssent backto mortgage companies. She stated XXXX County never cashed any check for my account.She confirmed that no tax payments have been applied to either parcel on my property since I purchased my property in XXXX to include XXXX. 

XXXX XX/XX/XXXX : I spoke with XXXX inLoan Care EscalationsDepartmentat XXXXand asked to speak to my case managerat Loan Care for my tax problem. I was told that I could not be transferredto the Case Managerbut I could get a call back and that is Loan Cares Policy. I asked for the case managers nameand asked for a call back ASAP.ThenI was told that I could not speak to the Case Manager because it is now in the legal department and that I would get a letter in the mail. I asked to speak to someone in legalat Loan Careand was told I could not. XXXX started to get rude with me and then hung upon me. 

Prior to XXXX hanging up on XXXX also advisedherthat on XXXX and XXXX XX/XX/XXXX I tried to upload documentsLoan Care asked for on XXXX XXXX XXXX the Loan Care website but never got a confirmation or a ticket number.I called Loan Care on XXXX XX/XX/XXXX and spoke with XXXX ( ID Number XXXX ) I advised that the difficulty in uploading documents on the Loan Care and asked for email address to submit documents XXXX told methere is no email address. XXXX advised me that there is an email to send documents and it XXXX. 

I called back at XXXX XXXX and spoke to a supervisor at the Escalations Departmentat Loan Carenamed XXXX ( Employee ID XXXX  ). I advised him that I am unable to upload documents to the Loan Care Website and get tracking tickets for uploaded documents have been received by Loan Care. He advise that I send my document XXXX. I asked him to have Loan Care tofix the document upload problem on the Loan Care website. I asked for ticket numbers for documents I submitted on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX.I was told there are no ticket numbers. 

I also advisedLoan Carethat since a new incorrect escrow on my property was issued on XXXX XX/XX/XXXX including theincorrect tax amount of {$3000.00}, there are potential violations of theReal Estate Settlement Procedures Act ( RESPA ). 

XXXX XX/XX/XXXX : I received an emailXXXX  XXXX XXXX County Revenue Commission from email XXXX follows : I can not locate where your mortgage company sent payment to us. They will need to contact us directly with more information concerning the payment. I have attached a letter for you to forward to them concerning your exemption ( XXXX XXXXXXXX ) .They should have documentation from us or be able to find out if they have received a refund or if their check was depositedor cashed by anyone. 

XXXX XX/XX/XXXX : At XXXX I called the escrow/tax department at Loan Care and spoke with XXXX. I asked for a copy of the canceled check Loan Care sent to XXXX County. XXXX advised that Loan Cares third part payment processor XXXX XXXX sent {$3000.00} in a bulk check to XXXX County on check number XXXX on XXXX XX/XX/XXXX. I advised XXXX that back on XXXX XX/XX/XXXX when I called Loan Care I was told the check number was XXXX and my check was sent individually and not in bulk. XXXX then stated the check number is actually XXXX and it was sent in bulk with other properties to XXXX County Revenue Commission in an amount he would not disclose. He did say my two parcels were in a spreadsheet sent in the mail with check XXXX showing two amounts of {$300.00} and {$2700.00}. I asked him to provide a copy of the the canceled check XXXX so I can take it to XXXX County and track if form there. XXXX refused to provide the canceled check XXXX that was sent by their third party processor XXXX XXXX on XXXX XX/XX/XXXX for the incorrect tax of {$3000.00} on my property that they sent to XXXX County Revenue Commission. I advised if Loan Care can not provide a copy of the canceled check XXXX then it was never cashed. XXXX started to argue with me and I advised that without proof of the cashed check that XXXX XXXX allegedly sent to XXXX County, then it is the same as the check never being sent and it is upon Loan Care to find where the money went because it sure was not applied to my XXXX County property tax account nor has it been refunded back to me. 

XXXX XX/XX/XXXX : At XXXX XXXX I called XXXX County Revenue Commissionand spoke with XXXX XXXX XXXX that Loan Care isnowsaying that two amounts were disbursed in the bulk check of unspecified amount that Loan Care sent from their third party processor XXXX XXXX two amounts {$300.00} and {$2600.00} ( {$3000.00} total ) on XXXX XXXX XXXX thenlocated the payment on check number XXXX from XXXX XXXX and then advised that XXXX County sent a bulk check back to XXXX XXXX on XXXX XX/XX/XXXX on check number XXXX fromtheir account XXXXXXXX XXXX in XXXX, Alabama in the amount of {$130000.00} along with a spread sheet showing my two parcels XXXX XXXX XXXX in the amount of {$2700.00} and XXXX XXXX XXXX in the amount of {$300.00} ( XXXX XXXXXXXX ). XXXX XXXX stated that the XXXX County Revenue Commission Check number XXXXwas indeed cashed andcleared XXXX XXXX on XXXX XX/XX/XXXX. 

XXXX XX/XX/XXXX : at XXXXXXXX XXXX I called Loan Care and spoke with XXXX ( XXXX XXXX ). I advised XXXX that I do not owe tax on my property for XXXX and that the {$3000.00} Loan Care sent using its third party payment processor XXXX XXXX was sent back to XXXX XXXX XXXX XXXX XXXX in XXXX, Texas XXXX in bulk check XXXX in the amount of {$130000.00} from XXXX County Commission on XXXX XX/XX/XXXX and XXXX XXXX cashed the check on XXXX XX/XX/XXXX. XXXX XXXX has had the returned money for the incorrect tax amount charged to my loan now for 41 days and counting. If Loan Care would like to know who cashed the check ( if not XXXX XXXX ), they need to contact XXXX XXXX at XXXX County by calling XXXX.I advised XXXX, once again to call XXXX XXXX XXXX County Revenue Commissionat XXXX if they have any further questions or need documents. I also advised XXXX to raise this issue to her next level of appropriate management to remove the incorrect {$3000.00} in taxes on my loan at Loan Care ASAP. XXXX said that was not her job to do so. 

SUMMARY : Loan CareHasViolated FRCA : Loan Careincorrectly increased my loan balance all three credit reporting agencies on XXXX XX/XX/XXXX by including the incorrect tax amount of {$3000.00} Loan Care sent to XXXX CountyRevenue Commission on XXXX XX/XX/XXXX into my loan balance. To this very day, I have documented thatLoan Care continues to report a higher incorrect loanbalanceamount to all three credit reporting agencies even afterI conducted the following documented activities : 1 ) XXXX XX/XX/XXXX : I uploaded the corrected XXXX County {$0.00} property tax bills to the Loan Care website. 

2 ) XXXX XX/XX/XXXX and XXXX XX/XX/XXXX : The higher incorrect loan balanceamount wasdisputed on XXXX XX/XX/XXXX and XXXX XXXX XXXX the credit reporting agencies and Loan Carecoming backreporting the higher incorrect balancewithout correcting it. 

3 ) XXXX XX/XX/XXXX : I called Loan Careto inform them that I uploaded the corrected XXXX County property tax billsand I do not owe taxes and told them to resolve the issue ASAP. 

Loan Care did nothing to correct the problem they created by sending the incorrect property tax of {$3000.00} to XXXX County that I never owed, Loan CareHasViolated RESPA : 1 ) XXXX XX/XX/XXXX : Loan Care produced and posted to my account on the Loan Care website an incorrect and much higher Escrow amount of {$1600.00} by including the {$3000.00} taxes I do not owe and have not owed since I uploaded my XXXX County property tax exemption documents to the Loan Care website on XXXX XX/XX/XXXX. 

After I have spent 58 hours, 26 phone calls and over 20 emails from XX/XX/XXXX to XX/XX/XXXX ( 3 months ), Loan Care has STILL not removed the incorrect {$3000.00} they sent in significant error to XXXX County Revenue Commission from my escrow account despite the fact XXXX County Revenue Commission sent check XXXX back to XXXX XXXX on XXXX XX/XX/XXXX which was cashed by XXXX XXXX on XX/XX/XXXX, XXXX  days ago. 

Loan Care has done absolutely NOTHING to fix this issue for 3 months and counting. I have had to do all the work when it should have been Loan Care contacting XXXX County Revenue Commission to resolve this as I have asked all along.As a result, Loan Care inviolation of RESPAfor producing an incorrect Escrow on XXXX XXXX XXXXandreported my loan balance incorrectlysince XXXX XXXX XXXX the three credit reporting agencies in violation of FCRA. 

I have all my documentsand recordsin order. 

Loan Carehas been noticed toaccomplish the following by XXXX XX/XX/XXXX in writing sent with XXXX tracking : 1 ) Remove theincorrect {$3000.00} tax on my propertyfor XXXX tax year. 

2 ) Aformal letter from Loan Care issued to me resolving the matter back to {$0.00} tax statusfor XXXX. 

3 ) Another escrow be done on my property removing the incorrect XXXX on my property and a new monthly mortgage statement be issuedin the correct amount of {$1000.00}. The new escrow must be sent to me at my address and posted on the Loan Care website. 

4 ) Update all three credit reporting agencies the correct loan balance by removing the incorrect {$3000.00} property tax added to the loan balance. 

5 ) Due to the extreme difficulty of trying to get a simple issue resolved and spending58 hours, 26 phone calls and over 20 emails from XX/XX/XXXX to XX/XX/XXXX ( all documented in detail ) trying to resolve an issue that is Loan Caresfault andresponsibility. A check for {$2500.00} plus applicable state and local taxes must be sent to me at my property address.This covers the FCRA and RESPA violations as well as my time and money spent trying to resolve the issue for over three months. 

Should thefiveitemsnot be completed by XXXX XX/XX/XXXX, I will move forward with FCRA and RESPAlitigation and Loan Care will be responsible for attorney fees, my costs ( time and expenses ) as well as damages as allowed by law.