Consumer complaint received 2022-01-19
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (FL)

My issue is with XXXX, Loancare XX/XX/XXXX I recieved my first notice about a lapse in insurance. A week later I received mail saying " Thank you for updating your insurance. ". I figured it was taken care of so I didn't pursue it any further. In the beginning of XXXX there was a hole in the hot water pipe and it needed repairing. 
I called the insurance company and they informed me I had not been insured by them since the beginning of XXXX due to none payment. The payment is supposed to come out of escrow. It did not. I talked to a slew of Loancare customer service reps during this time. They all had different things to say. One said I did have insurance and I was covered, another didn't. I finally get transferred to the insurance department and they say I have no coverage. So my husband and I end up paying out of pocket to repair the pipe and the hot water heater. This cost us over {$3000.00} I call the mortgage company to see what can be done since no one notified us for 9 months. One rep says Just get a new policy and everything will be fine. I asked why they waited so long to tell us, and the rep says " We just like to give our clients a really long time to find insurance so they dont have to pay for the forced insurance, its really expensive. '' XX/XX/XXXX they sent another notice saying we did not have insurance. We got a policy XX/XX/XXXX, still within the allotted time given to us. I am under the impression that everything should be fine now, according to what multiple reps from Loancare assured me. 
XX/XX/XXXX I received two letters. On letter stated forced insurance has been placed, and our mortgage payments will go up {$150.00} until escrow is back to normal. The other letter stated the forced insurance has been cancelled. 
We are negative XXXX in our escrow account because of the policy we bought before the allotted time was up, and the forced insurance charge. I had several reps file multiple investigations/research, asking why no one notified us, and why we are being charged for insurance we NEVER had access to. Recall back to when I called the mortgage company to see if we already had forced insurance so I could use it. No one in the insurance department did anything but tell me to buy a new policy. 
XX/XX/XXXX, I speak to a rep name XXXX. XXXX informs me Loancare was notified of the cancellation of insurance in XXXX. She also found the paperwork showing they sent me a notice saying " thank you for updating your insurance no further action is needed ''. She also found evidence of loan care being notified that my house no longer had insurance in XXXX. She said the information was buried deep and she had to really work to find it. 
Ultimately XXXX admits to me someone at loan care is at fault and I should have been notified sooner. XXXX attempts to present this evidence to someone higher up, but no one with any power will do anything to refund the forced insurance. No rep told me this would happen. The reps were either withholding information to save face, or genuinely did not know what was going on. The misinformation given to me alone is proof of negligence in the facility. Loancare claims to want to help their clients, this is a gross misrepresentation of what they really do. I will say there were a few reps who I feel tried their best to resolve the situation and get the refund, but others really did not care at all. Some reps told me it wasnt Loancares fault the insurance company didnt contact them, but they must understand it isnt my fault for no one contacting me. I paid over $ XXXX for repairs then they charged me, for them not telling me in time. Loancare did not lose any money, I repaired a mutual asset with money out of my own pocket, and they punished me for it.