Loan Care Mortgage Complaint

Conventional fixed mortgage Loan servicing, payments, escrow account

Loan Care Mortgage department,

Conventional fixed mortgage Loan servicing, payments, escrow account District of Columbia

In short, our Title Company and original Mortgage Company both paid our real property tax for the second half of -/-/- (due on -/-/-)- paying double for our 2nd half property taxes and depleting our escrow account. Additionally the original property tax amount that was supposed to be withheld was based on a -/-/- DC appraisal rate (not our new development home), so there was additional property taxes needed to be paid. The Loan was transferred to LoanCare- in late -/-/-, and they immediately decreased our loan amount by - a month. I called and asked them why they decreased it and was told "to not worry about it as its normal".

They never did. Come -/-/-, and our loan payment increased - dollars. Upon calling LoanCare-, they said that it will continue that increase for all of -/-/-, explaining that my escrow account was depleted and required a certain amount at the beginning of each year to meet escrow, PMI and DC property taxes. I discussed with the original mortgage company and title company and they identified the issue that the Title company inadvertently paid the taxes twice- emptying our escrow account (which shows up on public record for the DC government). All - of us (Original Mortgager, Title Company and Myself) called LoanCare- to explain the situation and ask for an adjustment given enough was paid for the -/-/- 1st Half DC property taxes due on -/-/-. LoanCare- said that "they do not look at the DC government tax website when calculating these rates and will not do so" and that their "property tax department doesn't talk to the escrow department". We explained though that without checking with the government on how much taxes are owed for -/-/- 1st half, they would be paying an unnecessary surplus...and withholding an unneeded amount in our monthly payments. The agent got frustrated and told us to send the tax information to LoanCare. I did so on -/-/- both via email and their online email system. At this point, the payments listed have not changed, DC government says they cannot return any property tax payment, and LoanCare- has not contacted me back about how they are going to make the proper adjustment. In short, we just want to pay what we actually owe and have our loan service due their legally required due diligence in serving our loan.

Loan Care customer in District of Columbia
Feb 26, 2017

* Source: CFPB Complaint Database

Loan Care response to complaint:
Closed with explanation

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