Consumer complaint received 2020-12-28
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: HIGHLANDS RESIDENTIAL MORTGAGE (HI)

Chronological Account of the Issue : XXXX : After evaluating the best closing scenario for my refinance - I decided to loop the XXXX PAYMENT on my Cove Landing property into the payoff of my loan with Highlands Mortgage. So I went online to turn off the auto-payment for the account. 

XX/XX/XXXX : I went online to check my XXXX checking account ( where my mortgage payments are pulled from ). It showed my XXXX PAYMENT on the XXXX XXXX property as PENDING and it did not show a payment pending for my Ivystone property ( this property is also being managed by Highlands ). 
- I logged into highlands website to see what was occurring. Apparently I turned the auto-payments off for my XXXX home, rather than my XXXX XXXX home. 
- I made the payment for my XXXX Home on the second. 
- I called the help line. They informed me that they can not stop my XXXX PAYMENT and that I should call my bank, XXXX, to request a stop payment. 
- I called XXXX bank requested a stop payment be placed on the XXXX PAYMENT. 

XX/XX/XXXX : I logged onto my Highlands account to get a status and it indicated that the XXXX PAYMENT was received, which I now know is not accurate. The funding was not actually with Highlands Mortgage at the time they indicated the payment was made. 
- I asked Highlands if they could issue me a refund for my XXXX Payment ( via check ). They said they could and started that process. 
- I called XXXX and told them to cancel the stop payment since the funds had made it to Highlands. I thought going through the refund process would clear the way for my closing to occur on time. 
- XXXX informed me that they could not cancel the stop payment and that the money would be pulled back. 
- I then called XXXX back to request the refund ( via check ) for my XXXX PAYMENT be CANCELLED. The person I spoke with confirmed it would be no warning of any potential issues were provided. 

XX/XX/XXXX : My mortgage team informed me late in the day that there were TWO ( 2 ) outstanding payments and a late fees on my pay-off statement. 
- I called Highlands to determine what had occurred. Apparently XXXX was SUCCESSFUL in pulling back the XXXX PAYMENT. 
- Highlands went forward and began processing my refund, but instead of processing my refund for the XXXX PAYMENT as requested ( and cancelled - the same day ) they refunded my XXXX PAYMENT. They then reported me to the credit bureau for a late payment in regards to my XXXX XXXX. They also issued me a late fee. I was not aware that I had been reported to the credit bureau until I spoke with a new Highlands customer service rep on XX/XX/19. That reps name is XXXX ( XXXX ) he made extensive notes on my profile for reference and he filled a dispute on the credit bureau filing. 
- I called Highlands was able to have them cancel the late fee. I was advised to pay the XXXX PAYMENT at that time and that Highlands would work to put the funds they pulled out of my account, back into my account making the mortgage account current. 

XXXX XXXX : I called highlands a number of additional times to emphasize that I did not want a refund mailed to me and I wanted to funds put back into my mortgage account so my status could be current enabling me to move forward to close on my refinance effort. I talked to a number managers and many customer service reps. The last call I made - the customer service rep. told me the funds would be back in my Cove Landing mortgage account at XXXX on XX/XX/XXXX. Thus making me current before any late fees might be applied and in time for my scheduled closing on the XXXX. 
- Please note that I live in Hawaii I signed my closing documents on the XXXX, which were then mailed to Virginia for the titling company to file. Actual closing occurred on the XXXX. 

XX/XX/XXXX : My refinance on both properties was ready to close we were waiting for this payment to be put back in my account in order to finalize the payoff statement. 

XX/XX/XXXX ( Friday ) : The refund, which represented my XXXX PAYMENT, was not in my account as the customer service rep told me it would be. I spoke to another rep and they told me a refund check was mailed out to my home in Virginia. 
- I was put in a situation where I had to choose between pushing out my closing or potentially being late on my XXXX PAYMENT. This occurred because Highlands was unable to follow the many requests I had made to them between XXXX XXXX. 

I sent all of this information to the company via letter to the president ( as directed ) and via the customer service portal.