Consumer complaint received 2023-09-29
Company: LoanCare, LLC
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage
Sub-issue: Foreclosure

Complaint:
I am a single mother raising XXXX XXXX  daughters and working full time who is in danger of losing my home due to loss of income from XXXX. I told my mortgage company Loan Care what was going on and they did offer help but they have given me a plan that has raised my payment about {$300.00} per month and is nearly half of my monthly income. I appreciate that they are trying to help my family but we will not be able to honor this agreement and believe that Loan Care did not follow FHA guidelines when they offered these solutions. I have trouble communicating with Loan Care ( they dont want to talk to me ) and I dont want to lose our house at sale on XX/XX/XXXX. 
I bought our home with my husband XXXX XXXX in XX/XX/XXXX with an FHA loan and made a 3 % down payment to close the deal. At that time my husband was a supervisor for XXXX XXXX and I was working as a food safety quality assurance inspector for XXXX XXXX. We had no problem making our mortgage payment with both of our income sources, but in XXXX XXXX was XXXX  on XXXX  XXXX  and was XXXX  at that time. I went through the shock of losing my husband, my daughters losing their father and also the loss of his income. Even so I was able to continue paying the mortgage on my own until XXXX when I became XXXX  with XXXX on XXXX different occasions. This led to me missing a lot of work and losing out on income. I called into Loan Care to request help and instead of being offered the XXXX  forbearance as required for an FHA loan and a Covid related income loss Loan Care gave me a loan modification which raised the payment about {$50.00} a month. I was grateful for the help from Loan Care, but this solution did not really solve the problem and I was not aware that Loan Care was required to offer the forbearance according to the FHA guidelines. 

In XX/XX/XXXX my hours were cut and my husband XXXX was XXXX  to XXXX  years in XXXX  so I am solely responsible for my XXXX daughters ages XXXX and XXXX that I care for myself while working full time. Due to the loss of hours I defaulted on the mortgage again and missed two months of payments. I was notified that Loan Care had scheduled a foreclosure sale date for XX/XX/XXXX. I tried to call in to get help and their agents told me that they could not speak with me about the mortgage because I was not on the loan, even though I have a legal and binding signed power of Attorney. I withdrew funds from my XXXX in an attempt to catch up with Loan Care and sent them a {$5000.00} lump sum which would have covered 4 months of payments, but they rejected this and sent it back ( attached ). Next I received a letter telling me to send in financial paperwork to the loss mitigation department and I did and was recently approved for a loan modification with a partial claim for {$8200.00}. Again, I appreciate that Loan Care is trying to provide options but this loan modification RAISED my payment {$280.00} a month. This payment is 45 % of my gross monthly income and I am a single mother with XXXX daughters and a husband in XXXX! I cant afford this payment. I signed the paperwork and sent it back to Loan Care but the truth is I will not be able to honor the agreement because there is not enough money left for food and bills with this high of a mortgage payment.

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