Consumer complaint received 2022-10-07
Company: LoanCare, LLC
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
We used the VA loan forbearance due to effects from covid. We recovered from covid slightly before our forbearance had ended. When I spoke with our Loan Service Provider ( Loancare LLC ) on XX/XX/XXXX, I advised them that I wanted to apply for an initial VA Partial Claim Payment ( VAPCP ). VAPCP is a temporary program that is intended to assist Veteran borrowers specifically impacted by the COVID-19 pandemic to resume making their regular ( pre-COVID ) mortgage payments after exiting forbearance. VAPCP is available from XX/XX/XXXX through XX/XX/XXXX. However, Loancare advised me they longer doing VA partial claims and the program had ended. 
I contacted XXXX  XXXX XXXX XXXX and spoke with my loan Technician. The VA loan technician said we are still eligible, and to call back and re-request VAPCP. Moreover, the technician had recent partial claims from Loancare in her queue. This confirmed that VAPCP was still possible. She advised me that some loan service providers are using this as a tactic to restructure low APR homes. We had a XXXX XXXX XXXX now they said my only option is to restructure the loan and get the new market rate, or I have to pay the past due amount of {$33000.00}. 
Called a Second time XX/XX/XXXX and was denied the VAPCP program again. I advised them about what the VA XXXX said, and they refused to submit the claim. I asked for an email to send official documentation about the program to them, and the rep provided an incorrect email address. 

Called XXXX XXXX Called and was denied VAPCP again. They said it was due to the program ending on XX/XX/XXXX. This was wrong according to the VA documentation, and the XXXX XXXX. I went over programs to get my account current with Loancare. In the disclosure that they read on a recorded line, it says the VAPCP program and deferral is available, but refused to offer it to me. They advised I had to pay the past due balance ( {$33000.00} ) or do a loan modification. 

Called XX/XX/XXXX and denied VAPCP. I asked them about the VA documentation I emailed to them for review, they had not received it. I was given the wrong email, so I resent the documentation to the correct email address for review. 

Called XX/XX/XXXX Denied VAPCP once again. I asked about the VA documentation I sent for review, the claimed to have not received it and wait 24-48 hours. 

XX/XX/XXXX My COVID-19 forbearance has officially ended. 

Called XX/XX/XXXX Denied VAPCP program once again, even after receiving the VA documentation. My forbearance has now officially ended. I am currently in collections status and in danger of losing my home. I have no choice but to start the loan modification process. They refused to give additional information on why they decided to end the program. Because of my status, if I dont accept the loan mod, they will move me to pre-foreclosure. I still have not heard from Loancare regarding the VA documentation I submitted. They Loancare Representative I spoke with said that no one was notified that they would be ending the VAPCP program. I believe this is unfair to veterans, the forbearance put us into a worse position than before the pandemic. Please help us. 



The Loan Modification approval process was based off 3 questions : 1. Can you resume you monthly payments you had Pre-Covid. ( I said yes ) 2. Can you pay the past due amount of {$33000.00} by today? ( I said no ) 3. Have you expenses increased or income lowered since the forbearance? ( I said yes, due to new child and new business ) Loancare LLC XXXX XXXX : Address : Loancare XXXX XXXX XXXX XXXX  XXXX, VA XXXX XXXX XXXX XXXX XXXX XXXX, VA XXXX Phone : XXXX Phone : FAX : XXXX Email : XXXX Thank you for your time!

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