Consumer complaint received 2022-10-25
Product: Payday loan, title loan, or personal loan — Installment loan
Issue: Problem with the payoff process at the end of the loan — 
Company: KEYCORP (AZ)

On XX/XX/2021, XXXX and XXXX XXXX ( Sellers ) entered into a contract to sell their home located at XXXX XXXX XXXX XXXX XXXX, XXXXXXXX XXXX XXXX to XXXX XXXX XXXX and XXXX XXXX ( Buyers ) in the terms and conditions of the purchase contract that was agreed-upon the buyers and the seller was an agreement to transfer the existing solar loan to the new buyer. Throughout the escrow and inspection period, the XXXX provided all the necessary documentation to the solar company ( XXXX XXXX ), XXXX XXXX and the buyers applied to take over the existing solar loan with the solar company. Upon executing the purchase contract and opening escrow XXXXXXXX XXXX was provided with the purchase contract and all contract Addendums. On page 1 of the purchase contract it was clearly marked that there was a solar addendum included in the contracts and it clearly indicated that the solar loan would be transferred to the new buyer at close of escrow. Upon opening escrow XXXX XXXX hand delivered the solar information to XXXX XXXX along with a third-party authorization so XXXX XXXX could contact the solar company directly and facilitate the custodial transfer of the solar loan to the new buyer. Throughout the escrow process XXXX XXXX was fully aware there was a solar loan on the home prior to close of escrow. XXXX XXXX had been asked on many occasions if they received all approvals and all documents from the solar company, they did not respond, at the closing table the non-Stewart title employee who was notarizing documents on behalf of XXXX XXXX was asked again, where were the solar transfer documents in the closing paperwork, he was asked this many times and he had said the escrow officer would get back to us to confirm. Later that afternoon XXXX XXXX closed escrow on the property and never responded to the request for confirmation that the solar documents had been provided and the seller loan was properly transferred. All parties including the buyer and seller felt that they had properly transferred solar loan at close of escrow as any and all liens and conferences on the property were to be taken care of prior to close of escrow. Several weeks later all parties learned that the transfer of the solar had not taken place. The XXXX had reached out to XXXX XXXX  who was the solar loan servicer for KeyBank to make sure that everything had been taken care of upon doing so XXXXXXXX XXXX  said they needed a fee of {$7000.00} in order to transfer the solar along with a transfer fee, all of which should have been collected by XXXX XXXX at close of escrow. XXXX and XXXX XXXX paid the fees to XXXX XXXXXXXX and later received confirmation from XXXX XXXX that the solar loan had been transferred and everything was fine. In XX/XX/2021 XXXX and XXXX XXXX were closing on their new home and the solar loan popped up on their credit report in order to complete the new loan they had to verify that the solar loan has been completely paid off their new mortgage lender XXXX XXXX, XXXX XXXX reached out to KeyBank the actual investor of the loan and got confirmation that the solar loan had been closed and there was a XXXX balance. This information was verified by a third party as well XXXX who validated that the loan had been paid in full and assumed by the new owners of their previous home. Several months later the XXXX received information from XXXX XXXX  indicating that they still owed the remaining balance of the solar loan and it had not been transferred to the new buyer, XXXX XXXX  said the XXXX had not done what they needed to do in order to transfer the loan, however all documentation that was received by XXXX XXXX, XXXX XXXX and XXXX indicated that Loan had been transferred. At that point XXXX XXXX was contacted again regarding this transfer of solar loan XXXX said they had no liability in this as the XXXX was not recorded prior to close of escrow however XXXX XXXX was fully aware from the day the contract was given to them that there was a solar loan on the house and in the closing package XXXX XXXX had slipped in a document that said they were not responsible for anything that was recorded after close of escrow knowingly that there was a pending lien on the property. XXXX XXXX acted in bad faith and did not do their custodial job to transfer title and assure both the buyer and the seller that the existing seller loan had been properly transferred as per agreed upon the the purchase contract. XXXX XXXXXXXX and KeyBank continue to collect monthly loan payments from the XXXX via automatic withdrawal from their bank account throughout the year of XXXX long after the solar loan should have been transferred. XXXX XXXXXXXX and KeyBank also collected monthly payments from the buyers of the XXXX home as well during this time. XXXX XXXXXXXX and KeyBank have begun to pursued XXXX XXXX for collection activities on a loan that he no longer has. There have been numerous attempts to contact XXXX XXXX however there choose not to respond in any timely manor and they feel the XXXX are still fully responsible for the remaining balance of the Solar Loan even though all parties did what they were required to do to transfer the loan and there is a tremendous amount of documentation as to what has taken place regarding this. XXXX XXXXXXXX and XXXX XXXX did not respond in a timely manner to ensure the loan transfer was completely processed prior to close of escrow. XXXX XXXXXXXX and KeyBank refuse to respond to any request to resolve this issue. XXXX XXXXXXXX and KeyBank feel that it is the buyers issue for not completing a XXXX document that they received in XX/XX/2021 for something they knew nothing about and had no knowledge it was coming to them. XXXX XXXX has played a game with the XXXX and the buyers of this home throughout the entire process XXXX XXXX and KeyBank have tarnish XXXX XXXX credit report by reporting him late and turning him into collections when they did not fulfill their obligation that they had agreed to to transfer the solar loan. XXXX XXXX has failed to take responsibility for not properly making sure this solar loan was transferred as per the real estate contract dated XX/XX/2021 with the supporting documents of the solar transfer addendum, therefore harming the XXXX and the buyers of their home in the process. XXXX XXXX and KeyBank have proven to be bad actors and have incompetent processes to transfer the solar loan from an existing owner to a new owner the documentation provided to the XXXX upon getting the new solar loan clearly indicated the steps needed to transfer the loan to a new buyer the XXXX and the buyer completely did the steps that they needed to do in order for this to happen however between XXXX XXXX and KeyBank this has not happened As of this day XXXX XXXX  KeyBank and XXXX XXXX have not yet completed the transfer of the seller loan putting all parties in a very bad situation and harming the XXXX credit. This issue needs to be settled immediately as all parties are in limbo with the solar transfer process. Attached are the following documents Purchase Contract Documents from XXXX XXXX Indicating Solar Transfer Has been Confirmed Documentation on the loan assumption process indication the {$7000.00} incentive investment payment was encouraged but not required Documents of Loan Assumption Agreement Documentation from KeyBank indicating the incentive investment payment was received and posted Documentation obtained by XXXX XXXX to confirm the Solar Loan with KeyBank had been paid and account closed Documentation from KeyBank indicating they continued to take auto payments out of their account Emails and Documents from XXXX XXXX Emails and Documents from XXXX XXXX