Consumer complaint received 2022-05-28
Company: PLANET HOME LENDING, LLC
State: FL
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
My name is XXXX XXXX and I am veteran living in Florida. I currently have a VA home loan through Planet Home Lending. In XXXX of XXXX the area the property is located was under a mandatory evacuation due to Hurricane Dorian. The area was declared a federal disaster area on XX/XX/XXXX. On XX/XX/XXXX I missed the first home loan payment. In XXXX of XXXX Defendant submitted an incomplete loss mitigation package to Planet Home Lending. On XX/XX/XXXX Defendant was denied consideration for any loss mitigation options by Planet Home Lending. The VA has a disaster loss mitigation option that allows for a loan modification absent a complete loss mitigation package. The VA disaster loan modification specifies a 3 month trial payment plan is used to verify income in lieu of a complete loss mitigation package. Planet Home Lending had the ability to offer a VA Disaster Loan Modification and/or a forbearance at this point, but did not due to the fact I submitted an incomplete loss mitigation package. 

In early XXXX the Covid-19 pandemic begins. On XXXX/XXXX/XXXX The VA issues Circular XXXX. The circular states in part The servicer must ensure the borrower has been given every opportunity to pursue all possible loss mitigation options in order to bring their loan current. Failure to do so could impact a future claim payment and could lead to other legal or administrative action ( s ) against the servicer. Once again, I was eligible for a VA Disaster Loan Modification at this point and was never considered for as much. At no point did an employee from the VA Regional Loan Center my loan is assigned to reach out to my loan servicer to advocate on my behalf and inform them of my eligibility for the VA Disaster Loan Modification. The Circular further states that Servicers should review loan files for all possible loss mitigation options no later than 30 days before the forbearance period is scheduled to end. Servicers should document such reviews in their loan servicing systems. If no loss mitigation options are possible, in cases where the home has equity, servicers must refer the file to the relevant Regional Loan Center for VAs consideration of a loan refunding. 

On XX/XX/XXXX Planet Home Lending begins court proceedings to obtain a foreclosure. On XX/XX/XXXX I submit a complete loss mitigation package to Planet Home Lending. On XX/XX/XXXX Planet Home Lending puts forth an offer for Standard Modification ( ie Traditional Loan modification ) with a 3 month trial payment period. The section of the VA Servicer Guidebook ( the XXXX ) dealing with traditional loan modifications ( XXXX section XXXX ) does not allow for a trial payment plan. The sections of the XXXX dealing with streamline ( XXXX section XXXX ) and disaster modifications ( XXXX section XXXX ) allow for a trial payment plan in lieu of a borrower providing their financial information through a complete loss mitigation package. To be specific and direct, the loan modification as offered could of been offered at any point since XX/XX/XXXX and the specifically stated the servicer was required to offer said modification as of the publishing of VA Circular XXXX. 

Due to the proceeding circumstances I rejected the loan modification as offered. 

On XXXX I submitted questions to the VA Home Loan Technician assigned to my loan. He told me hed have to run them up the chain. I called back over the course of several months and was told he had no response. Eventually he informed me he would not answer my questions. On XX/XX/XXXX I was told by the Judge presiding over my divorce that if I had no answer from the VA within a month that Id be ordered to sell my house. I submitted a complaint/case to the White House VA Hotline on XX/XX/XXXX. On XX/XX/XXXX the supervisor of my VA home loan technician mailed a letter answering the questions I had asked. The answers to the questions cite nothing from an applicable CFR, nothing from the XXXX, nothing from an applicable VA manual, and nothing from the federal register. The answers I was provided consist entirely of the opinion of the VA employee who wrote the letter, XXXX XXXX. As of XX/XX/XXXX, I have been ordered to sell my home by the judge in my divorce as I was unable to obtain any documentation from the VA stating they would assist me in retaining the home.

Company response to consumer: Closed with explanation