Consumer complaint received 2025-05-06 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Paying off the loan
Company: LoanCare, LLC
State: WA

Complaint narrative:
Re : Complaint XXXX I am writing to supplement my complaint against LoanCare regarding their handling of my payoff request and loan status. I recently learnedduring a phone call on XX/XX/XXXX, XXXXthat LoanCare referred my loan to foreclosure as of XX/XX/XXXX, nearly a month later. 
The property is under contract and has been since XX/XX/XXXX. 
On XX/XX/XXXX I notified Loancare that I was selling the property and requested a payoff statement. I did not agree with the payoff statement ( received XX/XX/XXXX ) and eventually filed this complaint with your office. 
On XX/XX/XXXX, I submitted a request for a new payoff statement, as the house was still under contract and I needed to settle the transaction. I submitted the request the same way I had in XXXX. I have not received a payoff statement, but my attempts are documented ( see attached ) and summarized here : On XX/XX/XXXX I inquired as to the status and was told it had been processed XX/XX/XXXX. I replied that I had not received it and to please resend. Loancare did not reply. 
On XX/XX/XXXX, I responded and asked for an update. Loancare did not reply. 
On XX/XX/XXXX, I responded, reiterated that it was under contract and that I was worried a delay would jeopardize that. Loancare replied that it was under review and should be completed by XX/XX/XXXX. 
I replied asking Loancare to explain, as they had previously said it was processed XX/XX/XXXX. I repeated that I was concerned about the need to close on the sale. Loancare did not respond. 
Loancare did not provide any response on XX/XX/XXXX. 
During this back and forth with Loancare Customer Service, no one disclosed that the loan had been referred to foreclosure, nor that the payoff would be sent to a foreclosure attorney and not to me. My settlement attorney was copied on most of these emails and I repeatedly reminded Loancare that the property is under contract. I only learned of the foreclosure when I called Loancare on XX/XX/XXXX. The XXXX statement made no mention of the foreclosure attorney, even though it was dated after it was sent to foreclosure. 
I feel Loancare was misleading me about the payoff statement and they certainly delayed the process. They should have told me weeks ago that I needed to contact the foreclosure attorney to get the payoff statement. This caused significant confusion and delay in my ability to proceed with the contracted sale of the home, which would fully satisfy the debt. I believe LoanCares lack of disclosure violates the spirit, and potentially the letter, of their obligations under RESPA and 12 CFR 1024.36 and 1026.36, and possibly state laws. I also note that the CFPB requires a servicer to provide a payoff statement within 7 business days of a written request. In this case, LoanCare not only failed to meet that deadline but misled me about the loans status and diverted the payoff to foreclosure counsel without informing me. That conduct materially interfered with a pending home sale and has caused potential financial harm to both myself and the buyer. 
I am actively trying to resolve this loan via a full payoff from the sale. I urge your office to investigate whether LoanCares failure to timely and accurately disclose the referral to foreclosureand misrepresenting the status of my payoff requestconstitutes servicing misconduct and/or consumer harm. 
Please let me know if I can provide further information. I appreciate your time.

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