Consumer complaint received 2026-06-11 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: LoanCare, LLC
State: IL

Complaint narrative:
XXXX of XXXX my loan was sold from XXXX to XXXXLoancare. At this time we were in the middle of rebuilding our home after a fire on XX/XX/XXXXXXXX XXXX at the time had our insurance proceeds processed through " myinsuranceportal.com '' without issue, on time, and no issues whatsoever. They took deposit of our initial insurance disbursement as was their policy during the rebuild of our damaged home. We deposited a check in the amount of {$340000.00} of which 2 disbursements of {$110000.00} and {$86000.00} were given to us to pay our contractors to rebuild. This left a balance of {$140000.00} in escrow. In XXXX of XXXX these funds were transferred to Loancare with the sale of our mortgage. We had already gone through the process of procuring a general contractor as well as subcontractors to complete all the work and all of the paperwork was uploaded to XXXX XXXX XXXX. During the transfer to Loancare apparently many or most of the documents were not transferred. At this point in time we were rough completed with about 60 % of the repairs. We were required by Loancare to upload all the documents again including the initial insurance adjusters report, contract with our general contractor, contractor licensing and bonding, etc. Not unreasonable. They also asked for copies of waivers from our subs. These waivers were completed during the previous loan loss management and had the name of the previous bank listed on them. I was told that these were unacceptable and would need to be redone. Most contractors once they waive their right to lien do not want to fill that out again. An inspection was requested in XXXX as we were at the point that we needed another draw. We were immediately met with confusion and misleading directions on how to move forward on the LoancareXXXX application. We managed to get in touch with a representative over the phone through their phone vetting process as there is no other way to contact them other than through traditional mail. The inspection went through and they came up with a 60 % complete. They issued a check finally on XX/XX/XXXX, payable to my General Contractor and myself. At this time the general contractor had already been paid in full so I contacted them to see if we could get the check re issued to myself and my wife. During our time with the previous mortgage company on the first 2 disbursements this is what was done without issue. We were told it was Lonacare policy to pay the contractor directly, but we could request an exemption. So on XX/XX/XXXX I uploaded per their request a request for an exemption to their policy so that the checks would be written to us as the general contractor would not accept payment as they had already been paid in full. They did not want to add funds to their account and create a potentially taxable event on money they were not owed at that point. The general contractor had also provided a conditional waiver in the total amount of the contract as we were at a point in the project where they would not need to proceed with a lien. The request was met with Loancare telling me I had to provide a receipt from the general contractor. I contacted the general contractor and they produced a receipt in the amount of the check supplied by Loancare so that it could be rewritten. Loancare denied that and then asked for a verbal confirmation which they received on XX/XX/XXXX. At this point we are more than a month from the initial request on XX/XX/XXXX and getting nowhere with Loancare. As we were pressed for time as we are living in temporary housing during the rebuild we had to keep moving forward with our build and began to finance the project out of our own savings, credit cards, and ended up having to borrow from relatives to keep moving forward. Multiple phone calls just led to multiple new requests for new information, receipts, etc with the check never being rewritten. Finally on XX/XX/XXXX I spoke with rep XXXX at XXXXXXXX XXXX and she said that they had received enough information that they could cancel the check written with the GC as a payee and re write with my wife and I as payees. She notified me that I she would call me on Friday XX/XX/XXXX and let me know that the process was moving forward and that our check would be sent out. Friday came and went, no check, no call, more waiting. I called Loancare on XX/XX/XXXX ( Monday ) to follow up on what happened and why I did receive my phone call or status update on the re issued check, or even all of the money as during this crazy long process, we had requested another inspection in hopes of qualifying for the rest of the payout so that we could finish our house and move in without the mountain of personal debt over our heads. XX/XX/XXXX XXXX XXXX notified me that there would be no check written and that I would have to provide proof that the entire contract with the general contractor would have to be proven by a receipt, even though the general had already provided them with a conditional waiver for the full contract amount. This is long and drawn out but every attempt to collect any payment has been met with monumental and difficult challenges that have been met and then to have another request for information to delay. They are withholding at this point in time {$270000.00}. We have a complete inspection stating that our project is 95 % completed by their inspector. We deserve to receive some if not all the funds immediately as there is no risk to Loancare of their investment in our property. Their excuse time after time as they need to protect their assets and this is their policy. Their assets are more than protected with the fact they hold 1st position on the loan with their lien rights, they have a conditional lien waiver from the GC in the full amount of the contract so there is no threat of lien from the construction side, and the house as it stands is worth more than double what is owed on the current mortgage. The amount of money they are withholding is also more than we owe on the mortgage. In my conversation with XXXX XXXX on XX/XX/XXXX at XXXX am I was told I would need a final inspection with 100 % completion to receive any funds as well as all of the previous requests for more information satisfied. In this call I requested a final inspection which she obliged and scheduled so that we could move forward. At XXXXXXXX XXXX rep XXXX left me a voicemail that my inspection was being canceled and that I would have to speak to my XXXX XXXX XXXX and have my insurance adjusters worksheet amended and uploaded. Another delay. I called back at XXXX XXXX and reached another rep whose name I was unable to write down as I was in the field at work. She went over XXXX notes and explain that the amount I had received in insurance proceeds far exceeded the insurance adjusters estimate and they needed me to account for those funds. The number she told me was that I had received more than {$600000.00}. I told her that she was mistaken as the actual number was {$470000.00}. I was then offered to be transferred to their resolution specialist where I spoke with XXXX XXXX. She told me the amount in my escrow and I challenged that amount as being too much, there had to be an accounting error somewhere along the way with the transfer from XXXX to Loancare. At this point an inquiry has been opened by Loancare to determing what happened and why my escrow account has too much money. I still have not received any payment of any sort since Loancare took over my Loss escrow and we are desperate to move forward. The house has since been completed and we were scheduled to move in on XX/XX/XXXX. While conversations over the past 3 days have felt productive with XXXX XXXX, there is still no movement on payout. We are at crunch time now, we are up to our necks in personal debt as we have financed this project on our own while waiting patiently for our progress payments. The accounting error between XXXX and Loancare needs to be figured out for sure but not at the behest of our well being. Loancare has created a situation in our lives that has made living day to day unsustainable and has created a huge financial hardship on us as we have been trudging day by day since XX/XX/XXXX to rebuild our home after this fire. I dont expect any quick reaction from them because it is in their DNA to delay, delay, delay XXXX Below you will find a limited list of calls and times I have made to try to facilitate progress payment only to be met with new protocols and demands at every step. I dont have a complete list but the list I have is significant. XX/XX/XXXX XXXX spoke to XXXX about paperwork not being accepted XX/XX/XXXX XXXX spoke to XXXX, requested inspection XX/XX/XXXX XXXX spoke to XXXX about waivers XX/XX/XXXX XXXX spoke to XXXX about having the XXXX payee on issued check XX/XX/XXXX XXXX spoke to XXXX about check issue XX/XX/XXXX XXXX Missed the name, more on check issue XX/XX/XXXX XXXX spoke to XXXX, she told me to schedule another inspection to help facilitate payment XX/XX/XXXX XXXX spoke with XXXX in relation to inspection XX/XX/XXXX XXXX spoke with XXXX where she finally stop payed check written XXXX XX/XX/XXXX written in error and told me they would reissue with {$140000.00} as our inspection came back favorable. XX/XX/XXXX XXXX spoke with XXXX XXXX was told I now need to provide a paid in full receipt in the amount of {$590000.00} in order to receive any funds XX/XX/XXXX XXXX spoke with XXXX about situation, expressed my frustration, scheduled an inspection in order to facilitate XX/XX/XXXX XXXXXXXX XXXX received a voicemail from XXXX that my inspection was canceled due to the discrepancy with the financials and the need for an updated insurance adjusters report XX/XX/XXXX XXXX I called them to see what they were talking about. Updated insurance adjusters report? I was finally transferred to XXXX XXXX at resolution. Spoke with XXXX about the report and I told her their numbers were off. She is moving forward with internal investigation. XX/XX/XXXX XXXX XXXX I received a call from XXXX XXXX at XXXX that she had finally made contact with XXXX XXXX to confirm the numbers I gave here were correct. She stated in message that they are moving forward with investigation. XX/XX/XXXX XXXX I called and reached a rep whose name I missed. She read me XXXX XXXX notes. I notified them at this point that I had uploaded copied of all the checks, transactions, etc. that I had received from the previous loss escrow company and from XXXX XXXX. I Was told XXXX XXXX was unavailable at this point. XXXX XXXX may be working in good faith with XXXX but I am guarded as my experience to this point has been very poor. Im frustrated, confused, and have lost faith in this system. How does money in the amount of this get so muddled in the transfer of a mortgage? Why are they allowed to transfer mortgages during loss mitigation and rebuilding? The worst day our lives was the day we lost our home and many of the contents and memories we had collected over our 30 years of marriage on XX/XX/XXXX. I would relive that day 10 times over before I must deal with Loancare and their polices of delay and dont pay for 1 more day. Im done. As of today, Loancare is holding {$270000.00} of our insurance proceeds and is refusing to disperse. Please help!

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