Consumer complaint received 2021-12-01
Company: LoanCare, LLC
State: MS
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
My previous mortgage was transferred to LoanCare , LLC ( XXXX ) around XXXX of 2021. Since then, I have experienced numerous issues with this company. I have never made a late payment with my previous lenders ( XXXX XXXX and XXXX XXXX ) and was in forbearance ( due to Covid-19 ) at the time of the mortgage servicing transfer to LoanCare. My previous lender informed me that I would NOT owe any payments until my forbearance ended and that I would NOT have to pay a lump sum of payments for the months occurring during my forbearance. Several employees from XXXX XXXX assured me that when my forbearance ended, I would just continue my regular monthly payment of approximately {$1100.00}. 

All was fine until my loan was transferred to LoanCare. They immediately began to come after me for large lump sum payments that I could not afford. On top of this, they kept sending me letters threatening to foreclose on my home. Also, they kept calling my cell phone but every time I answered, it was an automated message telling me to call them back. However, when I called back, I could never speak to an actual person. I was always put on hold for an extremely long period of time until I hung up. I had only spoken to a LoanCare employee about twice and if I'm not mistaken, it was only when THEY called me not long after the transfer. 

Fearing I'd lose my home, I reached out to HUD and was able to speak with a counselor named XXXX. She was incredibly nice and helpful. After I told her what was happening to me, she called LoanCare. She was able to witness for herself what I had just explained to her about not being able to speak to a live person when I contact XXXX. During my phone conversion with XXXX, XXXX left us on hold for well over an hour before XXXX hung up. It wasn't until I talked to XXXX that I was able to even log into my LoanCare account! XXXX then said that I can try on LoanCare 's website to apply for a loan modification. ( XXXX had to give me my account number, which I had not received from LoanCare! ) LoanCare continued to send me letters threatening foreclosure even while my loan modification was in progress! 

The main reason for this letter is to inform you on not only what was previously mentioned, but also how they have negatively amortized my loan! I was paying my former mortgage servicers extra monthly principle payments to pay off my loan sooner. Again, everything was going smoothly until LoanCare got ahold of my mortgage. I went from a principle balance of {$140000.00} to {$150000.00}! This is what they did to me during the loan modification. They raised my principle balance over XXXX! I had to sign papers I didn't understand in order to avoid foreclosure. They put me in a position where I had to make a choice between having to pay over {$15000.00} immediately vs. paying only $ XXXX with a loan modification. The problems with the loan modification were not only the {$10000.00} that they snuck into my principle balance, but also the fact that they had on the paperwork that any other previous agreements were void! 

The last straw was recently when LoanCare charged my Escrow account over {$2500.00} for force-placed insurance! My homeowner 's insurance has ALWAYS been paid by my mortgage servicer and I pay it back through my monthly mortgage payments. However, LoanCare allowed my homeowner 's insurance policy to lapse so that they can charge me {$2500.00}!!!! This has taken my mortgage payment from {$970.00} to over {$1200.00}! I have NEVER paid that much for housing expenses EVER!! This is very predatory lending! It's just another attempt for them to keep overcharging me until I fall behind so that they can foreclose on my home. Look up LoanCare , LLC on XXXX and read their reviews. It will tell you everything you need to know about them.

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