Consumer complaint received 2024-09-07 00:00:00
Product: Mortgage — VA 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: FL

Complaint narrative:
I am the owner of the loan with LoanCare. This loan was previously owned by XXXX, who have contributed to the issues with her loan. 

On XX/XX/XXXX, I closed on a loan with XXXX XXXX XXXX XXXX XXXX XXXX to purchase XXXX XXXX XXXX XXXX, XXXX XXXXXXXX, XXXX XXXX, Florida XXXX. This loan with XXXX included a 2-1 Buydown in which the seller provided a credit to be used for an interest point buy-down for the buyer. This was explained as a relatively easy concept in which the sellers paid money, and the first year, I would pay a monthly loan amount 2 % points lower on her loan, from 6.75 % to 4.75 % for the first year. The second year, the mortgage was to go to 5.75 % on XX/XX/XXXX. However, on closing day, I discovered that I could not find the buy down paperwork within the closing documents. This created confusion and chaos on closing day and questions as to the monthly mortgage amounts being higher than initially told. These comments were ignored and ultimately, I closed after being reassured that they buy down paperwork would be in the ink signed documents. As for the monthly amount, I was never given an explanation other than once the buy down was applied, it would be lower. I ultimately paid the amount toldwhich should not have included property taxes each month for the year of XXXX, as those were paid at closing. ( See XXXX XXXX ) Despite all this confusion, I paid my mortgage every month, in the erroneous amount, through the end of XXXX. XXXX provided an Escrow Analysis, which raised my mortgage even more, due to property taxes. ( See XXXX XXXX ). I am 100 % Totally and Permanently XXXX Vet, and as such, in the State of Florida, I am exempt from property taxes in my primary residence. This benefit was applied for and approved for the home I lived in prior to purchasing my new condo. I paid XXXX taxes on that home as it was my primary residence for most of XXXX. ( See XXXX  XXXX ). On XX/XX/XXXX, I both called and emailed XXXX regarding her XXXX status and emailed my paperwork showing I am exempt from property taxes. ( See XXXX  XXXX ). They refused to do a new escrow analysis to reflect the lack of taxes, so I reduced my payments, as she stated in my email, to eliminate property taxes and requested XXXX to comply with the law and remove them from my payments. XXXX refused and called to inquire as to when she would find out about the property taxes on her primary residence. I informed them that the State of Florida did not even require the applications to be due until XXXX and the XXXX XXXX XXXX told her to expect the information in XXXX. I did not hear back from XXXX after XXXX and I figured they were waiting for her property assessment, since taxes were not due until XXXX, it was impossible for her to be delinquent on that bill until then. 

Unknown to me, XXXX sold my loan to a new company, called LoanCare. On XX/XX/XXXX, LoanCare sent me a welcome email. After calling to confirm my loan had been sold, they informed me I was delinquent due to not paying her property taxes. I provided LoanCare the same information on XX/XX/XXXX, that was provided to XXXX on XX/XX/XXXX. On XX/XX/XXXX, LoanCare informed me that they were removing the property taxes from my account due to my status as a 100 % Totally and Permanently XXXX Service Vet and my exemption under Florida Law. They instructed me to pay a new amount, that was also in an amount larger than I expected, but I paid the amount on XX/XX/XXXX, until I could figure out why my loan was in such a confusing state. 

In the beginning of XX/XX/XXXX, I received a call from LoanCare in which they informed her me again that I was delinquent. Having made every payment on time for the existence of the loan, I believed this was again about the property taxes being removed. It was only after some back and forth with the LoanCare representative, was it discovered that LoanCare had no paperwork on my 2-1 Buy-down and believed they had purchased a loan at 6.75 %, and not the new 2nd year loan at the buy-down interest rate of 5.75 %. Immediately concerned due to the issues she had on closing day, I contacted her primary banker, XXXX XXXX XXXX, to see if he could find out what happened. ( See XXXX XXXX  ). I was sent, by the title company, the Buy-Down paperwork to sign on XX/XX/XXXX. This was the same paperwork she had requested on the day of her closing and was guaranteed to be in her closing documents on XX/XX/XXXX. It was not included in the closing documents and had to be re-accomplished 14 months later. 

At this point, since XXXX XXXX was no longer with XXXX, he contacted XXXX XXXX XXXX, who was the Director of Closing operations at XXXX. XXXX XXXX worked with LoanCare and on XX/XX/XXXX, it seemed that everything was worked out. XXXX XXXX reported from LoanCare : I spoke with the tax and escrow teams. The tax office confirmed the customer is 100 % Veteran exemption. However the customer has to pay a Valorem tax in the amount of {$49.00} per year. The escrow team will analyze the account today. Below is the payment effective XX/XX/XXXX and the customer also has {$1800.00} in suspense that can be used for her payment. There has been no negative reporting because of the transfer and there is a stop until XX/XX/XXXX. XXXX XXXXXXXX completed XXXX XX/XX/XXXX. XXXX XXXX is {$2700.00}. XXXX reduced {$110.00} per month. Overage is {$3300.00}, will be mailed out to customer. ( See XXXX XXXX ). 

I then received a new escrow analysis, which was completely different from the XXXX Escrow Analysis just 6 months earlier. It no longer had the property taxes in it, and it also no longer claimed that she owed extra money to get rid of an escrow deficit.instead, it admitted that she was owed almost {$3400.00} in overage and seemed to have her payments correct and they were lower than what she paid in for XX/XX/XXXX. ( See XXXX  XXXX ). 

After fighting with both companies for almost six months to correct my account, to remove the property taxes that, as a XXXX veteran, I was legally exempt from paying, I finally believed that my mortgage was correct. It wasnt until I called in XXXX to confirm they had copies of my insurance, did I find out that LoanCare, despite what XXXX XXXX told me, still claimed there was a missed payment. They first said it was XX/XX/XXXX where there was a missed payment. XXXX XXXX again stepped in, but LoanCare could not even provide answers another bank could understand, let alone a consumer. I provided proof of her XX/XX/XXXX payment and she was asked for proof of XX/XX/XXXX payment, which she also provided. I requested and then later begged for them to give me an answer to what month they claim I was delinquent on so I could clear this up. LoanCare then took one month to analyze her account. LoanCare claimed to not have enough information to tell me which month they were so confident I was delinquent in at that timedespite sending her threatening letters to report her to the credit bureau and take legal action against her. How they felt they had enough information to threaten legal action, but not be able to answer her simple questions on what payments she was behind on, is truly astonishing. In addition, in XXXX threatening letters, they claimed she was not responding to them. An obvious lie, based on all the attachments to this complaint. I was in contact with them non-stop to try to resolve this issue. ( See XXXX XXXX ). 

Finally, on XX/XX/XXXX, almost 5 months after the purchase of the loan from XXXX, XXXX XXXX XXXX from LoanCare provided a response. ( See XXXXXXXX  XXXX ) The response provided by LoanCare, after all this confusion, was nonsensical and full of bogus information. It did not explain why she should be back property taxes on the first 6 months of the year, it did not explain why they took back a credit or why. It did nothing to explain how, LoanCare, came to the realization that I owed exactly one month payment... when I never missed a full month 's payment. 

LoanCare did an escrow analysis, removed property taxes from the bill starting on XX/XX/XXXX, acknowledging my XXXX vet status, took out the taxes each month which amounted to {$370.00}. This amount was almost the exact same amount I reduced from my payments to XXXX, starting in XX/XX/XXXX, as I was exempt from paying the taxes, as I told XXXX. This is also the same amount that LoanCare claimed was still owed when LoanCare was transferred her loan. It was at this time, after additional investigating, that I found out XXXX reported me delinquent to credit agencies, for taxes I did not owe. XXXX has since removed the delinquent notice to the credit agencies. 
LoanCare acknowledged in their Escrow Analysis that I do not owe monthly property taxes in the amount of {$370.00}, but then claimed that the shortfall from XXXX of {$370.00} when it was transferred to them. I do not owe payment for property taxes for any part of the year, not just for the part of the year that LoanCare approved and seems to want her to believe. I didnt owe them for any part of the 2024 year, per Florida Law. ( See XXXX  XXXX ). I made every monthly payment required. ( See XXXX XXXXXXXX ). On XX/XX/XXXX, I disputed this accounting provided by XXXX XXXX XXXX and requested a full review of her account be provided. A new individual, XXXX XXXX XXXX eventually responded after XXXX XXXX asked again on XX/XX/XXXX, informing her they were looking into the matter. There has been no response since and my attorney has now sent a letter similar to this complaint. 

A simple review of all the emails and correspondence I had with both banks reveals deceptive practices by both XXXX and LoanCare. Both banks provided material interference with the ability of me, the consumer to understand the term or condition of a consumer financial product or service. In addition, the banks took unreasonable advantage of my reasonable reliance on the banks to act in the interests of the consumer. From the day of closing, I expressed confusion over amounts owed as well as adequate paperwork that explained it. This turned out to be good questions to ask, because less than a year later, it was discovered the paperwork was not handled correctly, despite her best due diligence and XXXX added in property taxes that she had already pre-paid for. In addition, XXXX  XXXX Escrow Analysis was another complete disaster, which failed to account for her escrow overage and instead, increased her amounts in XXXX to cover a shortfall. XXXX XXXX XXXX and XXXX XXXX tried their best to assist with damage control, but there was only so much they could do, as they did not work for the new company and XXXX XXXX did not even work for XXXX any longer. 

LoanCare has repeatedly been deceptive in their communications with me. LoanCare changed their theories on what the problem was. Ranging from interest rates being incorrect, to property taxes, to refunding me money and instructing her to use a credit to pay part of a month, to then take the credit back and use that bait and switch of money to claim she was delinquent for that month as well. LoanCare has put money in and taken money out of my mortgage account with no explanation. I have begged LoanCare for answers regarding her loan for months, yet they could not provide them. LoanCare clearly engaged in deceptive banking practices. They refuse to provide a full accounting on a loan that is not that old. Yet, they still felt emboldened enough to threaten me with legal action. 

After months of fighting and getting no resolution, I have had to hire an attorney to assist me.

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