Consumer complaint received 2024-01-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: LD Holdings Group, LLC
State: NJ

Complaint narrative:
In XX/XX/XXXX, my husband XXXX XXXX and I ( XXXX XXXX XXXX received a letter from Loan Depot informing us that we had a shortage in our escrow account connected to loan number XXXX, for a total of {$10000.00}. The letter also informed us we had the option to make a lump sum payment of XXXX to keep our mortgage payments at {$3700.00}. 

On XX/XX/XXXX, my husband XXXX requested a Cashiers check from our bank for XXXX and he mailed it via USPS certified mail to the Loan Depot XXXX XXXX in XXXX, California, including the tear-off instructions we received in the mail from Loan Depot XXXX 

Starting on XX/XX/XXXX, Loan Depot started debiting biweekly mortgage payments from our bank account with the adjusted, higher mortgage amount of {$2300.00} ( for a monthly total of {$4600.00} ). We realized this was occurring by XXXX XXXX. I contacted Loan Depot on XX/XX/XXXX and a Customer Service associate by the name of XXXX XXXX confirmed that Loan Depot had not received our check for the lump sum payment. We proceeded to check the USPS tracking number, and at that time, it showed the envelope was still in transit. We then went to our bank, and they advised that Cashier checks can not be stopped or cancelled before 90 days had passed. This meant that the earliest we could cancel the check- which at this point we thought was lost in transit- was XX/XX/XXXX. Loan Depot continued debiting the updated, higher mortgage amount from our account during this time. Between XX/XX/XXXX and XX/XX/XXXX, Loan Depot debited 9 biweekly payments for {$2300.00}, totaling {$20000.00}. 

In XXXX, my husband and I returned to our bank after the 90 days had passed from check issuance, and we are able to secure a printout confirming that our check was indeed received by Loan Depot on XX/XX/XXXX, seven days after it was originally mailed by us on XX/XX/XXXX. I contacted Loan Depot on XX/XX/XXXX and a Customer Service Representative then confirmed that our check was received and incorrectly applied to our mortgage payment ( and to our principal ) instead of to the escrow shortage as it was intended. They explained that this happened because checks are processed automatically and if a reference to the escrow is not included in the check, Finance doesnt know where to apply the payment. In reviewing the initial letter we received from Loan Depot in XX/XX/XXXX with the option to make a lump sum payment, there were no specific instructions about memos to include in the check when paying for the escrow difference. Nonetheless, we had included the tear-off instructions we received in the escrow shortage notification letter from Loan Depot along with our mailed check.

After my discussion with the Customer Service Representative, she transferred me to her supervisor, XXXX XXXX XXXX. I recounted the situation to him and he confirmed he would begin the process to rectify the payments, apply our check to the escrow shortage and then credit the payments we had made in excess to our XXXX and XXXX mortgage payments. XXXX stated that the process would take some time and that he would keep me informed. He provided his contact number at XXXX. 

In XX/XX/XXXX, we received a letter from Loan Depot dated XX/XX/XXXX stating that we have missed our mortgage payment and need to get in touch with Loan Depot. This came as an unpleasant surprise to us, given our engagement and communication with Loan Depot up until this point. On XX/XX/XXXX I contacted XXXX XXXX XXXX and he confirmed that such letters are sent via an automated process. He further stated that we could ignore the notifications and that we still did not need to make any payments at this point, given the lump payment already made and the payment rectification in-process. XXXX explained that in order to rectify the situation, Loan Depot would reissue the check for our full lump sum payment of {$10000.00}. Then, XXXX would request a stop on the check so that the amount could be applied to our XXXX and XXXX mortgage payments. We would then be receiving a check for the remaining amount that we had paid in excess. XXXX stated he would contact me at that time to set up new, recurring mortgage payments, as they had been scheduled up until this point. During this call, I provided verbal authorization to go ahead with this plan of action. This is the last time that I spoke to XXXX XXXX XXXX directly, although the expectation was for him to be a direct point of contact. I and other Loan Depot representatives have attempted to contact him on multiple occasions. 

Between XX/XX/XXXX and XX/XX/XXXX I called XXXX XXXX XXXX 6 times, leaving voicemails every time requesting a call back. He has not called me back ever since our XX/XX/XXXX conversation. 

In early XX/XX/XXXX, it came to our attention that Loan Depot had now reported us as delinquent on our mortgage payments to the US Credit Agencies. Our previously excellent credit took a hit of XXXX points and is now rated as poor at XXXX points as of XX/XX/XXXX. I contacted Loan Depot once again to request an explanation and rectification as we have been following Loan Depots instructions while they resolve our issue, which was Loan Depots mistake to begin with. The Customer Representative confirmed that Loan Depot will begin proceedings to update the Credit Agencies and remediate our credit. The Representative also confirms to me that Loan Depot has mailed the lump sum check to us, which we had not received. She provides me with the tracking number, and I am able to see that the check was delivered incorrectly to another home as the picture showed a completely different doorway and entry. I reconfirmed my address to the Customer Service Representative, which she confirmed is the same on file with Loan Depot. She confirms that I should hold from making any payments until the situation is settled and we schedule a call to speak again on XX/XX/XXXX. I never receive a call back from this Loan Depot representative either. Meanwhile, my husband and I go around our neighborhood by foot and in a car looking for the distinct door in the picture and are able to locate the house where the check was mailed to, about a mile away from our house. After getting in touch with the homeowner, who has fortunately kept the incorrectly delivered envelope, we locate the check and deposit it into our bank account on XX/XX/XXXX. We continued to await updates from Loan Depot. 

On XX/XX/XXXX I contacted Loan Depot once again to request an update on the correction of our credit report, as my husband and I are beginning our house search process again. I speak to XXXX XXXX, who confirms that our request has been put on hold until we bring our mortgage payments to current. This is the first time that I hear of this step being required. XXXX also informs me that the guidance I received from XXXX XXXX XXXX that we did not need to make payments due to the lump sum received and rectification in-process was incorrect, and that we are contractually obligated to continue making payments. I then proceed to give verbal authorization to debit {$13000.00} from our bank account to bring payments current. XXXX confirms that the earliest our credit could be rectified is the end of XX/XX/XXXX, which prevents our ability to get preapproved on a mortgage for a new home, and we lost a chance to finalize a home that we were hoping to secure for our familys move. We are still unable to consider moving options, take advantage of our historically excellent credit for any financing opportunities or be considered for homes that we would be eligible for, if not for the mistakes and misguidance on behalf of Loan Depot. 

As my family and I returned from our holiday travels, in addition to all of the above, we were welcomed home on XX/XX/XXXX with an incredibly upsetting notification from Loan Depot that we are being put on Notice of Intention to Foreclosure. I check our Loan Depot portal and see that the payment authorized on XX/XX/XXXX for {$13000.00} has been manually cancelled by Loan Depot. I once again contact Loan Depot and speak to XXXX XXXX XXXX, XXXX XXXX XXXX on XX/XX/XXXX. I recounted the situation to her and she confirmed that the payment was stopped due to the process going on internally at Loan Depot. She also mentioned that there is an internal note, dated XX/XX/XXXX that the credit repair process is on hold until we make the payment. I told her that I never received this information and she confirmed she can see that as they are internal notes only. XXXX advises that she will request the Credit department to put a stop to their process and call me back on XX/XX/XXXX to attempt making the lump sum payment over the phone once again. 

This issue has been ongoing for over 6 months. Every time I have contacted Customer Service at Loan Depot, I have received different and incomplete pieces of information, including when speaking to supervisor XXXX XXXX XXXX. Loan Depot has never followed through on their commitments to call me back and provide updates on our case. The sheer number of phone calls I have had to make, and hours I have had to spend on the phone explaining the issue to a different person over and over again, has been one of the most frustrating and infuriating customer experiences I have had in my entire life. Loan Depot has been in possession of over $ XXXX of our money for months, while at the same time being unable to rectify their own mistakes, significantly damaging our credit and our familys ability to secure a new home in the process. It is my sincere hope that you will look into this complaint and identify the multiple process gaps and misinformation that this company has displayed in running their business, and the disregard they have for homeowners vulnerability to their errors.

Company response to consumer: Closed with explanation