Consumer complaint received 2018-08-15 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC
State: MN

Complaint narrative:
Our house burned down in a fire in XX/XX/2018. We notified Loancare of impending insurance investigation right away. We were told the load would be put on hold until the insurance would be taken care of. We requested the Payoff statement from loancare for our ins provider on XX/XX/18. We had to request another on XX/XX/18. We forwarded all the info to our insurance provider for payoff of the mortgage on XX/XX/18. Our ins provider sent them the check right away. Loancare deposited the ins check on XX/XX/18. We called Loancare repeatedly from XX/XX/18 through XX/XX/18. to make sure that this loan was taken care of. We were continually put on hold at times over an hour. the agents told us that they had received the funds and it was being processed. On XXXX the agent my wife spoke to was Mrs XXXX and she said the mortgage payoff would be applied backdated to XX/XX/18. This would have been within the timeline for the total payoff amount statement. On XX/XX/18 We were called and they requested us to sign a form for release of the mortgage funds for payoff. We signed it right away and faxed it right back to them. On XX/XX/18 Agent XXXX XXXX Called my wife and said everything looked good. My wife received a call from Loancare on XX/XX/18 they told my wife they were from collections and if she did not make an over the phone payment of XXXX they would not be able to close out the loan. After repeated calls to loancare put on hold and calls disconnected. We were able to get through on XX/XX/18 my wife spoke to XXXX who said she would look into what was going on and call us back. On XX/XX/18 my Wife spoke with XXXX who told her everything had been transferred to their Insurance Dept for approval. On XX/XX/18 I was able to get through to loancare rep who told me there was nothing that they could do as this was sent to the claims dept. I called back on XX/XX/18 and XXXX who transferred me to XXXX who put me on hold for 30 min. When she came back on the line she told me the payoff funds were accidentally sent to the insurance claims dept instead of applied to the loan. She told me this would be fixed and everything would be cleared up. Called back on XX/XX/18 I spoke with XXXX who told me he was the collections manager. i explained about the extra payment they charged my wife over the phone on XX/XX/18. He told me this would be cleared up within 48 hrs. And that the extra {$200.00} would be sent back to us. He also said our Escrow account had XXXX and this money would also be released back to us. Loancare reported to the Credit agencies that we had missed payments on this loan. We have never missed a payment. I did file a dispute with the credit agencies. some of which has been taken care of. They still show a missed payment over 35 days that never happened I have filed another dispute to get that cleared up. We recieved a check from Loancare for XXXX on XX/XX/18 in the amount of XXXX. i  called Loancare about the difference in amounts and was told by them the amout of XXXX was deducted for late payment. I asked what late payment and was told the payoff did not acure until XX/XX/18. I asked to speak to the manager and was given to a team leader She told me that I have to pay them until the Money is finished being applied to the Payoff.. I am so frustrated with this company. I feel they have stolen the XXXX payment the convinced my wife she had to do. They then stole another XXXX out of my Escrow account and told me this is the way its done. I filed dispute with their Complaint dept. We received a call back from them XX/XX/18 and were told we were charged the XXXX because we did not send in enough money to pay off the mortgage in full. The money they received for the pay off was the amount they told us to send in and it was received by them in the payoff period. Please let me know if there is anything That you need from me to help clear this up. I have notes and paperwork to back this all up.

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