Consumer complaint received 2021-06-12
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (WA)

To whom it may concern, We are writing to complain about issues with two loan companies and a title company and the destruction of our credit, as a direct result from their negligence, lack of communication and poor management of the refinance process. 

We had a residential loan with XXXX and chose to refinance through Newrez ( two companies under one parent company ) in XX/XX/2021. We signed the refinance paperwork with XXXX, the title company, on XX/XX/2021 with a disbursement date of XX/XX/2021. On XX/XX/2021 we received an email from Newrez stating that the loan had been funded, and on XX/XX/2021 we received an email from Newrez stating that our new loan account was ready to use. We logged in, set up our account and arranged for automatic payments to be made monthly, on the first of every month, starting XX/XX/2021, as per our refinance closing paperwork. 

On XX/XX/2021, we received a statement from XXXX that our prior loan XX/XX/2021 payment was delinquent, even though emails had stated that our prior loan had funded and our refinance paperwork stated we would not be making a payment on the new loan until XX/XX/2021. 

We spent close to 40 hours speaking to numerous individuals at XXXX, Newrez and XXXX, and learned that the original payoff balance was short {$3000.00} and the loan had not in fact been funded or closed. We were reassured that it would get " taken care of, '' and they were working to resolve the issue. 

We spoke to several XXXX representatives at the end of XXXX and beginning of XX/XX/2021, who stated that they were still waiting from XXXX on the correct payoff balance. 

We made our scheduled XX/XX/2021 payment on the new loan with Newrez. 

we again spoke to XXXX on XX/XX/XXXX, who told us that a new wire, with the correct payoff amount was sent to XXXX. we were sent confirmation of the wire, as well as a letter stating that the delay in the payoff was due to internal errors between XXXX, Newrez and XXXX and that we should not be reported to the credit bureau as being delinquent, as the delay was no fault of ours. 

As of XX/XX/2021 our online XXXX account dashboard stated that there is a {$0.00} balance, indicating that the prior loan had been paid and funded. 

On XX/XX/2021 we received a letter from XXXX stating that our home is now in pre-foreclosure. Furthermore, we were reported by XXXX to the credit bureaus as being delinquent on our loan payments and our credit has declined from XXXX to XXXX. We were in the process of purchasing a home ; however, we now do not qualify and are unable to secure financing as a result of the significant drop to our credit as a result of the miscommunication between the lenders and the title company. 

We would also like to note that we have owned several residential properties, as our primary residence, for the last 25 years, and never during that timeframe have we ever made a late payment. In fact, in all of our revolving accounts as well as household bills, we have never made a late payment, henceforth our near perfect credit of XXXX. 

We hope to have resolution to this matter in short order. Nevertheless, we are incredibly frustrated that after years of being responsible consumers, mistakes that were no fault of ours, were made that have significantly impacted our livelihood and purchasing power ; that has taken decades for us to acquire. 

We have attached several documents pertaining to this issue to bring this to a quick resolution. 

Thank you