Consumer complaint received 2025-11-05 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: LoanCare, LLC
State: MN

Complaint narrative:
My spouse and I applied for and were offered mortgage assistance during a time when we knew our income would be reduced due to an upcoming medical situation. After reviewing the terms of the Trial Payment Plan ( TPP ) we were offered, we decided to deny the plan because Lakeview staff could not provide clear enough information about what would or could happen to the terms of the remainder of our loan for us to make an educated and informed decision. Toward the end of XXXX, XXXX, I called to notify Lakeview of our decision to deny the XXXX and continue forward with our existing payment amount and loan terms. At that time, I noticed the amount of our next payment in our XXXX XXXX reflected the TPP amount, and the TPP agreement we received indicated that payment of the TPP would count as acceptance of the agreement and payment could be mailed by phone, online, or a mailed check. I asked for instruction on how to proceed with XXXX payment because the portal reflected the amount of the plan we were rejecting and I was instructed that I would need to re-set up automatic payment ( indicating to me that it had been turned off during the mortgage assistance application process ). So, I followed the instruction to set up a payment online and ensure automatic payment was re-activated. 

On XX/XX/XXXX, a second full mortgage payment was showing as pending to be withdrawn from our bank account but I had thought it was maybe a processing issue due to the change in activity in the portal and would zero out in the batch process. On XX/XX/XXXX, I noticed the funds had processed as a withdrawal and called Lakeview to request funds be transferred back to my account immediately because I had other bills scheduled for automatic withdrawal and needed to be able to feed my family and fuel our vehicles so we could go to work. I was informed that I had to submit my bank statement showing the withdrawal of the funds, then wait a XXXX day review period, and then a check would be mailed and expected to arrive within 10 days after the review process. Essentially, a XXXX week turnaround to get money back that was withdrawn from my account because I followed the instruction of the staff. This was an unacceptable solution for me, and after being transferred to a relationship XXXX I agreed to the offer that our check could be overnighted after the XXXX day processing period. 

On Monday, XX/XX/XXXX, I submitted the documentation that was requested during the XX/XX/XXXX phone call according to the instructions provided. Allowing for the XXXX day turn-around and the overnight shipping of the check, I should have received the check no later than XX/XX/XXXX ; however, it was not received. 

On Tuesday, XX/XX/XXXX, I called to inquire on the status and was informed that my request was denied because I didn't indicate " which '' payment I wanted refunded. Due to not approving a second payment to be withdrawn to begin with, I was unaware that XXXX payment was applied as a monthly payment and the other as an additional interest payment, nor was I was instructed that I needed to include that information with my original request. The solution presented to me was that I could resubmit and wait the XXXX day review period again after Lakeview already XXXX a week sitting on a rejection that met the criteria I was told to submit ( and not notifying me of the denial ). I declined this solution and was again transferred to a relationship XXXX, where I stated that my expectation was that they refund the payment that was applied to the principal since refunding my regular mortgage payment didn't make any sense ( wouldn't that put me in default and show I missed a payment? ). At the end of the call, I asked for confirmation that the check would be processed and overnighted so I should receive it by the end of the week. The staff never indicated there could be an issue with that. 

I believe it was the next day that I received a phone call asking for clarification on which payment I wanted refunded, despite it being clearly indicated from previous discussions. Again, I confirmed my expectation that the funds would be in my hand by the end of the week, and again, the staff never indicated that could be an issue. 

The check was not issued until XX/XX/XXXX, almost a full XXXX weeks after the payment was taken out of our account. At every turn of the process, there was lack of accountability, follow-through, incorrect or incomplete information provided, and hoops to jump through that seemed to made up after every interaction as an attempt to stall returning our money.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation