Consumer complaint received 2017-10-26
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (VA)

It pains me to have to write this letter and I am typing through tears of utter frustration that my interaction with Loan care has been this tumultuous. On XX/XX/XXXX my home had a sewage back up that caused water to spew continuously from the toilet through the walls, the vents and onto my carpet and sofa and throw. Immediately we began the process of locating containers to catch the water, and turning the water off at the source to reduce damage, however the water had been over flowing for at least an hour or so, and water pressure was low throughout the home. Yet as of the date of this email XX/XX/XXXX I have not received reimbursement for out of pocket expenses, nor have I been able to replace my personal items that were damaged. Most importantly, I have not I been able to make my first trial payment in Loss mitigation. As a result of paying out of pocket for repairs. Additionally I was advised that due to the problems presented with the processing of this claim, that claims representative would reach out to Loss mitigation and keep them updated as to not hinder my modification. THAT NEVER HAPPENED EITHER. Below is the lengthy recap of my interaction at loan care, which will be updated to the numerous complaints already on the web about the handling of Loan care insurance claims, ( un ) monitored. The timeline below does not capture all of the inaccuracies but from sheer phone calls only, you can see the urgency I had regarding this claim and its processing. 

XX/XX/XXXX sewage back up , county immediately called as we were unable to stop the water, and the water pressure in the home after getting the water flow stable was nonexistent. 

XX/XX/XXXX contact ins company XX/XX/XXXX home accessed XX/XX/XXXX check received from XXXX XXXX to myself and loan care. 

By this time, drain flies were appearing all over the home, in the bathroom, and along with the smell of the fecal matter in the toilet still, or under the home, gnats and the smell of methane, or sewage was getting stronger. 

XX/XX/XXXX contacted a plumber referred by neighbors that had same day service with a free consultation and with the promise of hire, they removed the toilet, to ensure my XXXX boys, did not use the toilet and to see if that reduced the presence of the pest and smell. Was advised to see if it was on county line first prior to incurring cost. 

XX/XX/XXXX contacted county about methane smell and possible clog under home , county came, dug up yard, and ran jetta machine, determined clog is under home, this caused the toilet to flood again. Not only did the county dig up my yard, after contacting a plumber, I was advised that based on the information I provided over the phone, it was that a special machine would need to be used and ran at a premium rate, as worse case scenario the clogged may have been pushed further under the house. 

XX/XX/XXXX I was contacted by my bank that my INS check of XXXX was being returned ( policy cap of XXXX ) and needed to be endorsed by loan care. 

XX/XX/XXXX I immediately contact Loan Care Ins to advise this check was coming and what was the process. I was advised to send the check over and they would endorsed and send back WELL HERES WHERE IT GETS INTERESTING XX/XX/XXXX I contact Loan Care INS advised the rep it will take 3 days for XXXX to get the check back to me, versus me picking it up from the branch XX/XX/XXXX, and in panic after explaining my situation, the rep stated she will give verbal authorization for the insurance company to reissue the check payable to me only. Via conference call the representative contacted the XXXX insurance company to validate the claim and advised that they would authorize the check being payable to me only so I could get repairs done. ( CONTRACTORS WERE AT MY HOME VIA REFERRAL FROM XXXX XXXX ) The insurance company stated NO PROBLEM send me something in writing or an email or a fax and I will reissue today. In XX/XX/XXXX we were advised by loan care ins claim representative she could only offer a verbal authorization, and this was not possible for XXXX XXXX to take. 

Contractors stated for amount of work to be done, they would not agree to bill me, as the repairs were less than 8k and dealing with the insurance company can be time consuming. 

XX/XX/XXXX called around, found a different plumber to do the job reached out to family and friends via social media to see if anyone could help with repairs. 

Call history -- - XX/XX/XXXX contacted plumber about abating sewer flies, was told wax seal would need to be replaced toilet removed and additional tools needed to be used as the issue as went too long unaddressed. I Was advised by plumber to try a home remedy for the sewer flies that were coming into the home as a result of waste sitting in the pipes and commode for this long. 

XX/XX/XXXX received check back from my banking institution as it needed to be endorsed by loan care, sent overnight XXXX XXXX to loan care called let them know it was coming inquired ETA and was told, that this was a monitored claim and as such I needed to submit some additional docs. I explained that everything had been repaired, ( to the cheapest possible quality ) after going back and forth, I logged in on the insurance claim website and begin uploading docs from advanced plumbing. Positive I would be reimbursed within 3-5 days. 

XX/XX/XXXX called advanced plumbing to come out, paid advance plumbing to come out and abate sewage back up ( same day ) XXXX out of pocket as they are not willing to billed due to the time lapse in contracting their services ( from XX/XX/XXXX to XX/XX/XXXX ) and the fact that the amount is under 8k which is the min billable amount. 

XX/XX/XXXX called to see why no status update per the site had been made, as all docs had been sent in, was told by representative that the receipt was not valid as the company name was illegible, was also advised need additional docs that I was told XX/XX/XXXX werent needed as I had already paid out of pocket. Given erroneous info that the next rep said was true. 

XX/XX/XXXX Insurance rep called advanced plumbing and confirmed repairs were made and requested an additional document that I was advised was not needed, and the XXXX XXXX manager sent it over without fail. I was advised ; reimbursement check was being requested and would be overnighted. INSPECTION ORDERED. 

XX/XX/XXXX received approval from deacon board at church I could use excess carpet from having the sanctuary refurbished a few months ago. With the condition that I sow back into the Families helping families fund. Received enough pre used and excess carpet to do den downstairs. Not enough to finish carpeting the whole area, but enough to cover the impacted area. 

XX/XX/XXXX I called in to confirm document had been received from advance plumbing and to see the delivery of the funds as I wanted to replace my floors and couch and vanity and toilet with items that were of the previous price range and caliber. ( For example the toilet we received from habitat from humanity was 15 inch vs the standard 17 inch, and I am XXXX and my son is XXXX, its like we are squatting using the bathroom now ) Was advised, check had not been requested and that unfortunately I needed to reach out to my father mother and folks, to get receipts and license and waivers of liens. 

AGAIN KEEP IN MIND IF I HAD WAITED FOR LOAN CARE PRIOR TO FIXING THESE ISSUES, MY HOME WOULD BE CONTAMINATED, AND DAMAGES WOULD FAR EXCEED THE POLICY CAP OF XXXX, LIKE FECAL MATTER WOULD STILL BE IN THE PIPES AND THE INFESTATION OF SEWER FLIES ( 30 EGGS LAID A DAY ) WOULD BE DETRIMENTAL TO THE VALUE OF THE HOME. 

XX/XX/XXXX called loan care again spoke to a manager to see what was the hold up as per the XX/XX/XXXX conversation I was told, I needed a contractor to fix cosmetic repairs that I had already abated, again explained the issue with this, and was told, a reimbursement check would be sent for XXXX, ( which had not been done as told on XX/XX/XXXX ) EXPLAINED ABOUT LOSS MITIGATION AND THAT MY PAYMENT HAS NSF AS A RESULT OF THE EXTRA FUNDS NOT BEING THERE. Explained I had been calling daily to make sure that I was reimbursed to make trial payment. Was told rush request were being placed to streamline process. 

XX/XX/XXXX spoke to rep, advised not sure how to handle estimates that exceed claim check ( from XXXX and XXXX XXXX ), and unsure of how to go about replacing my couch, but I was advised to have my sister who is a XXXX XXXX, XXXX XXXX and XXXX XXXX, that I should request receipts and contract license and ect.. for them helping me abate the cosmetic issues. 

XX/XX/XXXX no resolve, spoke to rep, checked status insurance claim website, no update. Explained due to claim cap, I wanted to go to habitat for humanity ( restore ) to get floors, gentleman was holding floors for me, but do to financial situation, did not want to pay of pocket and not get reimbursed. Advised representative flooring from habitat from humanity that would cover the square footage of the area, and I need to have funds, was told, no problem, inspection had been requested and funds will be released no problem. 

XX/XX/XXXX called loan care ins again, advised-still no check, called loan care again wondering what to do, explained that I needed to be reimbursed and wanted to replace my damages, explained sewage back up abated, and I needed funds to do improvements within fair market value. Again explained unable to redo floors to a better quality as estimates exceed amount of claim cap and no contractor was billing under 8k. Inquired why inspector hadnt called, was then told, remaining funds would not be released nor the 25 % would be released as previously told. Again misinformation given and no resolve. 

XX/XX/XXXX spoke to management XXXX agreed ball had been dropped and escalated file, advised no one reached out to loss mitigation, I could not do my own repairs and she would check into how the process works. 

XX/XX/XXXX spoke to loss mit advised of issue with payment, and requested an extension and for trial mod to be reset set up promise to pay for XX/XX/XXXX XX/XX/XXXX spoke to mgmt. as check still not showing on website was advised, due to the claim, may be an issue with releasing remaining funds, even though I was told work could be self-completed I and now Im told thats not the case, so NOW WHAT? Was I just to leave the carpet wet, and the sofa and throw and toilet just untouched during this whole time, where was I supposed to live? What person who in in active trial period, to save their home, want it to be ruined. 

XX/XX/XXXX call from XXXX to confirm and update me on account and check being ordered and check was on its way XXXX Inspector comes out, take pictures states repairs are 100 % completed XX/XX/XXXX received check made payable to XXXX XXXX and Myself ( even though a paid invoice has been on file since XX/XX/XXXX ) XX/XX/XXXX contacted loan care, frustrated in tears as I have set up another payment to go out, and reached out to Loss Mitigation advising my Trial payment is on its way and again this ball has been dropped. Was advised XXXX would update the account as unsure why check was sent payable to the company that worked on my home 3 weeks ago. 

XXXX called XXXX XXXX, spoke to Office manager to see if they can endores this check sent to me and the plumbing company today. I was advised, due to the holiday and staffing, the check could not be endorsed until mid-next week. 

XXXX called loan care to see if check can be voided and new check issue and to find out what is the process between these two departments that causes this process to be this problematic, induce this much borrower harm and would have caused the damages in my home to far exceed the XXXX policy cap, and I was only told, they would research as it shouldve been made payable to me only. 

XXXX received a call from mgmt., trying to fix the issue, I am told NOW, that a mailer would be sent to me over night, then I will send back the check, and then they will request a new check, and this should be done by FRIDAY. 

My apologies for the length of the email, and still I did not capture all the miscommunication, false information, that took placed in the last 3 weeks. What I can say is, as of XX/XX/XXXX. I have still not been made whole. My loan status is in jeopardy, I found out, I am no longer in XXXX, XXXX XXXX has represented in my XXXX XXXX. And with all the people coming by to visit I have 2 different carpet types downstairs, and wall thats a different color and paint type then the others, a toilet that looks like it should be in a doll house, and a bank account that has accrued NSF charges as a result of induced borrower harm, for 2 different departments failing to provide competent, customer service. Although everyone was nice and mannerable and empathetic, it does not negate the fact- that a resolution has not been made, and the remaining funds ( XXXX ) needed to bring my home back to its previous standards, is being held as well. I mean seriously its XX/XX/XXXX if I was truly waiting for LOAN CARE to send me a check or to pay contractors, I would be in collections due to none payment of the contractors, or my home would be inhabitable. 

I would ask that accommodations be made to ensure I am reimbursed and a clear process of how to retrieve my additional funds, so that I can enjoy my home as intended, continue with my trail payments if thats even possible at this point, and bring this loan current.