Consumer complaint received 2021-09-29
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (CA)

RE : FORCING ME TO PAY FOR HAZARD INSURANCE ON A HOME THAT BURNED DOWN IN XXXX I am in the process of rebuilding. 

My home burned down in the California XXXX Fire on XX/XX/XXXX. Since that time I have been involved in rebuilding my home. It takes 4 to 10 years to rebuild a home in XXXX XXXX County. I have a building team who is busy getting each and every permit needed for the final permit to start actual stick building on site. 

My insurance company reimbursed me the funds held by my mortgage company. My mortgage company, LOANCARE, is holding the final amount of the mortgage, on which I make a payment each and every month while I am in the process of rebuilding. 

In XXXX I cancelled the insurance on my home because my home burned to the ground totally and my property is now a hole in the ground where the home building once stood. Then my mortgage company has an insurance division that contacted me and insisted that I must pay hazard insurance in order to have a mortgage with them. I sent multitudinous letters explaining that the home burned down and I no longer need insurance for a home that is not existent. But I discovered that LOANCARE is divided into two companies one for sending you mortgage payment slips and another section that simply makes sure you are paying insurance. These two sections do not communicate and do not share information. It took me two weeks of constant phone calls to contact a supervisor who insisted I had to prove my home burned down. So I sent him two papers proving my home burned down and then they stopped attaching insurance that they purchased for my home to my mortgage payment. 

Now the insurance section of LOANCARE is once again sending me letters insisting that I take out hazard insurance on my home or they will take out insurance for me and add that on to my mortgage. I have called many times spending hours navigating their robot phone system to try to reach a supervisor. It seems I can only reach lower workers called resolution advisors who will tell me that they have my information somewhere in their files but unfortunately their system is robotized so that they will keep sending me letters to force me to pay insurance on a home that does not existor they will continue to take out insurance for me and add that to my mortgage payment. 

Either this is a scam or this company is so poorly managed that they just automatically do this to everyone. 
My home burned down in California. This company LOANCARE, located in South Carolina, took over my loan from my local bank a few years before the fire occurred. They have no knowledge or understanding of local conditions in my area. Most of their agents read from prepared scripted letters, listen to what I say and DO NOTHING. 

I have called the mortgage section of LOANCARE and they tell me they can do nothing about the insurance section since they are not connected to their data base. All they can do is give me the phone number of the insurance section. 

I had my home burn down totally. I proved it to them. I can not afford to pay insurance for a home that does not exist. I am now considering if there is a way to sue them for pain and suffering since I spend hours and days calling them to try to prevent them from taking out insurance on a burned down home which is now a hole in the ground. Their automated web site has no place to explain this. It is only set up to take in the number and name of your insurance policy. 

What can I do to stop this from happening? My building team suggests I contact government services or find a way to sue them to stop this process. 
What can I do to stop this now?