Consumer complaint received 2024-12-14 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — Paying off the loan
Company: EF CORPORATE HOLDINGS LLC
State: CA

Complaint narrative:
Exhibit XXXX - My company XXXX XXXX XXXX has a mortgage with Lendsure based on a Term Sheet dated XX/XX/XXXX. 

Exhibit XXXX - We secured the loan for {$650000.00} of which {$82000.00} was set aside as Construction Holdback. We paid points amounting to {$16000.00} for the full amount of the loan, reflected on the Settlement Statement Exhibit XXXX - We paid for a full year, interest only at a rate of 10.999 % Exhibit XXXX - We applied for a loan modification wherein the original note shall be extended for 6 months and a {$50000.00} additional amount will be added to the loan, bringing the outstanding loan to {$700000.00} due by XX/XX/XXXX. 

Exhibit XXXX - Lendsure sent a mortgage statement with a Draw XXXX from the Construction Holdback amounting to {$22000.00} as payment for the loan extension. 

Exhibit XXXX - We sent a request for a release of Construction funds by XXXX but Lendsure deducted XXXX payment from the Draw XXXX amounting to {$29000.00}. On an email by Lendsure, they explained that only {$59000.00} was approved as construction funds. 

Exhibit XXXX - A mortgage statement for XXXX shows the current interest rate of 10.999 % and monthly due as {$6100.00}. Our total Draw was {$22000.00} leaving {$59000.00} as available funds Exhibit XXXX - A mortgage statement for XXXX shows the current interest rate of 10.999 % and monthly due as {$6100.00}. The total Draw was {$52000.00} to include the XXXX rent and release of funds. We still have {$29000.00} as remaining holdback funds. 

This is where the problem arises. We wanted to use the remaining Holdback Funds of {$29000.00} as rent payment for the remaining month since we are selling the property. At the rate of 10.999 % and {$6100.00} per month, these funds are enough to cover payments until XXXX. 

Exhibit XXXX - A mortgage Statement for XXXX shows current rates at 10.999 % and the same monthly amount due. Total Holdback is still {$52000.00} Exhibit XXXX - A mortgage Statement for XXXX shows interest rate is 24 %, and Holdback funds totaling {$82000.00}. Our monthly amount due is now {$14000.00}. We did not receive any other notice for the default rate being applied. 

Exhibit XXXX - We sent an email to question the default rate application, and the holdback funds not being applied to cover XXXX thru XXXX payments, like they did last XXXX. 

Exhibit XXXX - Lendsure sent a Pay off amount, demanding total payment of {$740000.00} and showing a {$14000.00} since XXXX. They also charged me {$14000.00} from XXXX and XXXX using the unused Holdback Funds of {$29000.00} No other notices were sent to tell us of this rate adjustment. In fact, their mortgage statements from XXXX thru XXXX shows a rate of 10.999 % and only {$6100.00} per month. 

Exhibit XXXX - XXXX mortgage statement showing default rate Exhibit XXXX - We paid Lendsure a total amount of {$750000.00} to fully satisfy the loan. We should have only owed {$700000.00} as of XX/XX/XXXX, and should be charged only default rate of 24 % effective XXXX when the original note expired.

Company response to consumer: Closed with explanation