Consumer complaint received 2019-05-09
Company: LoanCare, LLC
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I am certain that I am the victim of wrongful foreclosure. I began to fall behind on my mortgage in XXXX, XXXX due to job loss and identity theft, which I reported. Upon being notified of the debt validation notice, I immediately submitted for loss mitigation with my lender, LoanCare , LLC. The delinquent amounts didn't seem to make sense, nor did the reinstatement amounts provided to me. Further, I was referred to the " foreclosing attorney '' who provided me with what seemed to be unofficial foreclosure documentation and reinstatement paperwork on inauthentic letterhead, incorrect principal balances, and what appeared to be incorrect fees to reinstate my mortgage. Loancare also refused to provide me with loss mitigation approval for a forbearance, despite the fact that I provided all documentation. My homeowners insurance company sent me a notification that the mortgage lender called them to cancel my HOI policy 4 months in advance of expiration, citing foreclosure, which is a contradiction of their servicing responsibilities, and something my servicing company claims the HOI company initiated, which regardless, caused forced placed insurance at a higher rate, which shouldn't have occurred due to the fact that my policy that had already been paid in full the preceding XXXX had not at all expired. My home was valued at $ XXXX in a community where the homes were going under contract within 10 days of being listed. I paid $ XXXX for the home just 3 years priod and my mortgage balance of $ XXXX. Why would the servicer not mitigate any losses, but instead arbitrarily " sell '' the home to a private investment company at auction on the date of Trustee Sale for only {$200000.00}, leaving a deficient balance of $ XXXX, when it was an exemplary home with a fair market value that far exceeded the principal balance. That same private real estate investment company then sold my home 90 days later ( per XXXX 's flipping rule ) for $ XXXX more after putting in nowhere near that much for improvements. Again, the same home that I notified LoanCare , LLC I had placed on the market with my realtor, is the same home they still sold at scheduled Trustee Sale. I was then forcefully removed from my home by the XXXX County Constables office on XX/XX/XXXX, and advised that I could obtain my personal belongings within 10 days, provided I contacted the partner of the Investment Company, XXXX XXXX of XXXX XXXX, XXXX, which I did. He then lied by telling me my items had been sold and he only had papers containing personal docs of mine, which wasn't true. He still had my $ XXXX bed, my $ XXXX sectional and my entire walk-in closet full of several thousand $  $ of clothing, some of which were designer apparel. He offered to sell me some my personal belongings back for " between $ XXXX- {$4000.00}, but understood I didn't have the money to buy them and since most of the items had already been sold or in storage '' meanwhile marketing my home a month later with the same furniture I left behind included in the marketing photos. I was left homeless and living on the streets as a result of this mortgage fraud. Surely the CFPB would require my servicer to maintain servicing responsibilities of waiting until I were to actually default on my HOI before autonomously cancelling it in advance. Surely the CFPB would also enforce any mortgage lender to mitigate any potential to themselves by trying to ensure they could at minimum recoup the loan balance at Trustee Sale as my home would have at least warranted that, I'm certain. Lastly, wouldn't HUD require that a servicer exercise due diligence before arbitrarily releasing a home for less than the amount owed so HUD wouldn't be left to issue funds for a deficient mortgage amount if they didn't have to? In XXXX of this year, my credit report reflected that I had a mortgage foreclosure that had now been redeemed with the lender, when I no longer live in AZ. Can you please look into this and help me? XXXX XXXX XXXX loan # XXXX that originated with XXXX XXXX XXXX   XXXX in XX/XX/XXXX. XXXX 's loan number was XXXX and their number is XXXX

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