Consumer complaint received 2026-06-29 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: LoanCare, LLC
State: TX

Complaint narrative:
I am a XXXX borrower whose home was damaged by a tornado on XX/XX/XXXX. My insurer, XXXX, issued insurance proceeds totaling {$32000.00} to repair my home. My mortgage servicer, LoanCare , LLC, and the loan owner, XXXX XXXX XXXX XXXX XXXX, are holding XXXX % of those proceeds in a restricted escrow account and have refused to release any of them, despite my having submitted every document they required and despite the largest repair ( a full roof replacement ) now being complete. TIMELINE On or about XX/XX/XXXX, LoanCareXXXX received my endorsed XXXX insurance XXXX ( Check Nos. XXXX, XXXX, and XXXX, totaling {$32000.00} ), the full adjuster 's worksheet, and my executed repair affidavit, sent by certified mail. LoanCare 's own later letter confirms the funds were received as XXXX deposits on XX/XX/XXXX and placed into restricted escrow on XX/XX/XXXX. On XX/XX/XXXX, in the same mailing, I sent a Qualified Written Request ( QWR ) under RESPA, 12 U.S.C. 2605 ( e ), to LoanCare 's designated legal/QWR address in XXXX XXXX XXXX XXXX where it was received on or about XX/XX/XXXX. The XXXX contained XXXX requests for information and XXXX notices of error. On XX/XX/XXXX, LoanCare mailed me a notice claiming a XXXXbusiness-day extension to respond to the rest. That extension was untimely : the XXXXbusiness-day RESPA deadline, counted from receipt on XX/XX/XXXX, expired on XX/XX/XXXX the day BEFORE LoanCare mailed its extension notice. Under 12 U.S.C. 2605 ( e ) ( 4 ) an extension must be provided before the original deadline expires, so it was ineffective, and LoanCare has been out of compliance with RESPA since XX/XX/XXXX. On XX/XX/XXXX, I mailed ( certified ) a complete owner-contractor submission package, received by XXXXXXXX XXXX loss draft department on XX/XX/XXXX. It included a signed general contractor agreement for the full repair scope ( {$58000.00} ), a contractor 's waiver of lien in the matching amount on LoanCare 's own form, a notarized affidavit explaining that XXXX does not license general or roofing contractors for residential repair and that the City of XXXX requires no permits for this scope, and an IRS XXXX XXXX XXXX The cover letter expressly declared the file complete and invoked the XXXX release clock under XXXX XXXXXXXX XXXX XXXX XXXX. On XX/XX/XXXX, LoanCare ( XXXX XXXX, XXXX XXXX XXXX XXXX XXXX sent a substantive response confirming it received and is holding all {$32000.00}, that all of my required documents are in the file, and that I could complete the repairs myself by providing paid receipts and allowing an inspection before funds are released. That letter did not release any funds and did not state a specific, lawful reason for refusing to. On XX/XX/XXXX, I sent a certified demand letter giving LoanCare until XX/XX/XXXX either to release the proceeds or to provide a single written, specific statement of any remaining requirement and its legal basis, as Texas XXXX XXXX XXXX XXXX requires. That deadline passed with no compliant written response. The only contact resembling a reason for refusal was a voicemail from an unpublished ( XXXX ) number stating a " XXXX 's license '' was missing. Texas issues no such license for this work ; I explained this under oath in my notarized affidavit ; and a voicemail is not the specific written notice the law requires. I have repeatedly directed LoanCare, in writing, to communicate only in writing, and asked for the name and direct contact of the person handling my file which LoanCare has refused to provide. CURRENT STATUS Roof replacement ( the single largest repair item ) was performed XXXX XXXX XXXX and is complete. Because LoanCare would not release the insurance money, I funded the entire job out of my own pocket : my {$11000.00} deductible plus the full {$31000.00} XXXX invoice ( XXXX ), which I have now paid in full exhausting my personal resources, including credit-card cash advances, to do so. I have a paid-in-full receipt and dated completion photographs, and I have requested an inspection. Having spent my own money to complete the largest repair, I now have no funds left to pay the remaining subcontractors, and the project has stalled. LoanCare 's continued withholding of {$32000.00} in insurance proceeds money already paid by my insurer specifically to repair this damage is directly causing that stall and placing me in escalating financial distress. WHY THIS IS HARMFUL AND UNLAWFUL XXXX XXXX XXXX XXXX XXXX XXXX required LoanCare to tell me all release requirements within 10 days of receiving the proceeds, and then to release the funds or give a specific written refusal within XXXX days of my compliant submission. It did neither. My original submission endorsed checks, the full XXXX worksheet, and my executed repair affidavit was received XX/XX/XXXX and was sufficient on its face, so the XXXX release period expired XX/XX/XXXX. Under Sections XXXX, LoanCare owes me 10 % annual interest on the {$32000.00} held, accruing from XX/XX/XXXX. XXXX. This is a XXXX loan. Under 38 C.F.R. 36.4329, the holder must apply insurance proceeds either to restoration of the property or to the loan balance indefinite holding is not authorized, and the burden is on LoanCare/XXXX to XXXXhow they applied the proceeds properly. I have done everything required. The repairs are underway and the largest item is finished, paid for with my own deductible money. LoanCare is holding {$32000.00} of insurance money it has no lawful basis to withhold.

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