Consumer complaint received 2021-06-28 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC
State: TN

Complaint narrative:
My wife and I just recently received a certified letter stating our mortgage loan with LoanCare is now in default due to two months of missing payments. This was sent out in XXXX. 

I have consistently spoken with various LoanCare employees about a 'missing ' payment on several different occasions, with each occasion resulting in an admission that it was an oversight and error on their end. 

The last person I spoke with was XXXX on Wednesday, XX/XX/XXXX from XXXX to XXXX central time. She gave me the number XXXX to identify herself. I had also spoken with someone named XXXX that day prior to speaking with XXXX. I called out the dates of each month 's payments according to my records to show that I had not missed a payment. 

She mentioned that she saw where it was a mistake on their end, and that it would be resolved in five days or less. 

When I asked her if I would receive anything official in writing, she would NOT answer that it would be officially in writing for my records. Again I asked her for this to be documented officially so that I wouldn't have to keep wasting my time with them against false accusations and threats of a default. She again said they would NOT be able to put this in writing! 

In good faith I've contacted them numerous times in the past to resolve this issue, and again, I've been verbally told it had been taken care of, only to continue to receive communications from them stating the contrary as if those conversations never existed. I had mentioned I had spoken to someone named XXXX in XX/XX/XXXX and it was agreed upon by whomever I mentioned it to, and it was shown that indeed I did speak to someone by that name who had told me it was resolved. I asked for that conversation to be pulled up to show proof, but somehow it had not been recorded for quality assurance purposes. 

I have documents that show I've made a monthly mortgage payment in good faith since the very first month that they acquired this loan from XXXX XXXX XXXX  in XXXX of XXXX. 

I made a payment in XXXX of XXXX over the phone, and I believe this is what has prompted faulty record-keeping on their end. Every other payment I've made has been through my XXXX XXXX  online account. I will be glad to provide bank statements that show I've made my payments each month. I've offered this to them but they have told me it wasn't necessary since they found each payment I made. 

To state again, I've had repeated phone conversations with this company 's associates on this matter about these 'missing ' payments, and each time I've been told it was their error, yet THEY FAIL TO SHOW ANYTHING IN WRITING to support that. On the contrary, they continue to mail me documents to show anything but it being resolved. 

Also, they have continuously asked when a good time would be to contact me, and I mentioned before XXXX XXXX  and after XXXX XXXX. I had requested emails as well. 

On the contrary, they have 'robo-called ' me almost on a daily basis during my normal work schedule. When I answer, it is a voice-operated message instructing me to call them back. 

This is absurd, and I believe it is warranted for me to claim that their company as a whole is operating in bad faith, that this is beyond incompetence and mistakes. When I look at my payment history on their website, I'd be very interested to see anyone be able to describe it -- it's unnecessarily convoluted and obtuse, and I believe that to be deliberate to obfuscate the truth. 

They have caused my wife and I unnecessary anxiety and stress, and my work schedule has been compromised by continuously having to take time out of my day to straighten out what should be a simple issue. 

On one of their last documents it states my loan is now in default, despite missing ANY monthly payments. They listed an email address to contact them, which is : XXXX, and yet when I emailed them, it came back with an error message as not being a proper email address! 

Last year they sent me a written document stating I had an escrow shortage of a little over {$200.00} due to an increase in city/county taxes. They mentioned in that letter that I had two options : 1 ) I could mail them a check for that amount, and my new payment would be adjusted to {$1600.00} based on that payment, or 2 ) I could not send in the payment, and that {$200.00} would be rolled into my new mortgage payments, which would then be over {$1600.00} per month. I immediately mailed them a check for the {$200.00}, but they continuously sent invoices of {$1600.00}. When I called in to correct this, they claimed that they didn't know what to do with the {$200.00} I mailed them! I told them it was in direct response to their own communication. They told me they would fix it, but then it continued and I had to keep calling back in to correct it. They finally resolved it after several months. This gives you insight as to how difficult they have made things on me, and I believe this to be deliberate. 

Also, they have continued to mail me documents just one day apart stating that I do not have updated hazard insurance, then stating that I do, then stating that I do not again, and that they will have to pay for it and it could cost over {$2000.00} a year compared to the insurance I already have in place for approximately {$1400.00} a year. 

I have recently uploaded proof of my hazard insurance and no one has contacted me to verify that. Also they have a charge labeled 'unapplied balance ' of {$1300.00}. Regarding this charge, no one has been able to describe what it's for, and when I spoke to XXXX in XXXX of XXXX about this new charge, she said not to worry about it, that by her own admission their system was very convoluted and that she had resolved everything and that I was current and that all I owed was my regular monthly payment. 

This has been a complete nightmare! I have spoken with two different mortgage companies about refinancing, and when I mention their name they have said they were 'terrible. ' If you XXXX  LoanCare and read their XXXX reviews, they have over XXXX reviews with an average of XXXX ratings. Many people mention they would rate them 'zero ' if the system allowed. They have a proven track record of what I think the legal system would call 'operating in bad faith. ' So now my loan is officially in default despite me making my payments every single month. This also affects my ability to refinance at a lower rate for a conventional loan that will not have to require PMI since I now have over 20 % equity in this house. If someone can please advocate for me that would be much appreciated! 

Kind regards, XXXX XXXX

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