Consumer complaint received 2019-07-17
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LAKEVIEW LOAN SERVICING, LLC (NC)

In the process of selling my home, on XX/XX/2019 there was a payoff request made for my loan with Lakeview Loan Servicing LLC by my title company. This mortgage is serviced by XXXX. This payoff statement gives a balance of {$130000.00} which included interest for the entire month of XXXX good through XX/XX/2019. The payoff disclosure sent says they only accept prepayments on the first of the month and my loan allows them to collect interest for the whole month. Closing was on XX/XX/2019 and a check in the amount of {$130000.00} was sent overnight arriving XX/XX/2019. I called customer service on XX/XX/2019 to make sure that the check was received and asked if there was a problem and why it had not been applied. I was told it was received XXXX and everything was fine and that it would be applied later that day. On XX/XX/2019, the check still had not been applied and I called to ask why and was told that the check did not cover the total and it was in the process of being returned. I was told that it was being returned to my address in Ohio that they had on file by certified mail because I had not updated my address to show that I had moved. I spent hours on the phone with several different people trying to get this payment to not be sent to my Ohio address but my current XXXX address, if it had to be returned. I was told that because of the XXXX holiday the next day there was nobody there that could help me. Also, on XX/XX/2019 when I saw that the payment still had not been applied, I made a payment as to not cause any issues with being late on the payment. That payment was posted and the payoff check was now enough and had not been returned but I was told by law that it had to be returned because it did not cover the payoff when they received it. 

The explanation that I was given for the payoff check not being enough was the payoff statement was issued on XX/XX/XXXX and on XX/XX/XXXX they did a sweep of my escrow account for taxes due on XXXX. This left my escrow account in a negative balance of {$350.00} and funds had to be advanced to that account. I was told that a new payoff statement was sent on XX/XX/2019 and that I should have paid off of that but they could not tell me who that payoff statement was sent too or how it was sent. The first payoff statement was sent to my title company. The new payoff statement as of XX/XX/2019 they sent to my house in Ohio. 

Payoff check was returned to title company received on XX/XX/2019. XX/XX/2019 new payoff was requested by title company {$120000.00} good through XX/XX/2019 and including another month of interest because payment will be treated as if it was received on XX/XX/2019 even though the replacement check was received on XX/XX/2019. 

The long and the short ... 
XX/XX/2019 payoff statement good thru XX/XX/2019 {$130000.00} XX/XX/2019 escrow disbursement made and escrow account ( {$350.00} ) + {$40.00} fees= ( XXXX ) XX/XX/2019 XXXX issued a new payoff statement to reflect the new balance and sends to me the homeowner at my Ohio address which is then forwarded to me in XXXX and received on XX/XX/2019 XX/XX/2019 check for {$130000.00} is received by XXXX. 
XX/XX/2019 I call customer service, they verify they received and payment just has not been applied yet. No problems XX/XX/2019 I make my normal monthly payment of {$1100.00} plus fees XX/XX/2019 My regular monthly payment is applied but payoff is not. I called customer service and I am told it is being returned because the payoff was not enough. 
XX/XX/2019 returned check is received and another is sent overnight for new payoff balance of {$120000.00}. 
XX/XX/2019 Payoff payment is applied and account is {$0.00} balance.