Consumer complaint received 2023-07-17
Company: LD Holdings Group, LLC
State: GA
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
In XXXX XXXX  XXXX I retired from the military. I didn't have a job lined up because we were in the middle of the COVID pandemic. I called LoanDepot to express my concern and see what they could do to assist me. I contacted them roughly in XXXX XXXX  XXXX. They told me they could put my mortgage in forbearance and that I wouldn't have to make any payments until it ended. I asked what happens at the end of the forbearance and they told me that they could add the missed payments to the back end of the loan. They told me that I was approved for 6-months and before that time was up I needed to contact them to set up my repayment plan. They also said that I could request an additional 6 months if I needed it. I accepted the terms under the impression that I could just add the payments to the backend of the loan. Prior to the end of the 6-month forbearance ( approx XXXX XXXX ) I called them back and asked for the other 6 months. They approved the second 6-month forbearance. At that point I asked them again about adding the 12 payments to the backend of the loan and the agent told me that would be an option. I get to the end of my forbearance in XXXX XXXX  XXXX. I called LoanDepot back to set up my repayment plan. They told me the first thing I had to do was their 3 month trial period to make sure that I could make the payments. The trial period was XXXX XXXX. I made all 3 payments on time during that period. In XXXX after I made the third payment I received a letter in the mail from LoanDepot with a loan modification in it. I called them to ask what it was because the whole time we had talked I was under the impression that the payments were going to be added to the backend of the loan. They told me that my request to add it to the back of the loan was denied. I asked " Denied by who? '' They told me by the VA. I immediately called the VA and asked them why did they deny my request? The VA rep told me that they never denied any request from LoanDepot. Furthermore, LoanDepot had not reached out to them regarding my loan at all. Also that they do no control the conditions or terms of the loan. They are only there to back the loan. I called LoanDepot back and told them what the VA had told me. Then LoanDepot told me that I was only eligible for a modification and not adding it to the back of the loan. I was very angry because the loan modification took my interest rate from 2.25 % to 3.25 % and restarted my loan from the beginning with another 30 years and charged me an additional XXXX in fees and interest that they never really explained in the modification paperwork. I asked LoanDepot was there anything I could do to keep the 2.25 % interest rate that I had and they told me I could pay the past due amount of XXXX. The paperwork had a due date of one week that it had to be returned to LoanDepot. I wanted some time to think about my next move, talk to the VA more and come up with a plan. I asked the LoanDepot rep what would happen if I didn't turn in the paperwork on time? They told me that I would be in default on my loan and they could start pre-foreclosure on my house. Not knowing who to call, what to do, short on time, and not wanting to lose my house, I signed the modification paperwork. LoanDepot has several repayment options on their website : https : //www.loandepot.com/about/loan-servicing/support-resources. However, they lied to me about my options and promised me that I would able to utilize several other options and then reneged on those options. They also lied and said that the VA was responsible for me not being approved for any other repayment program other than the modification. They pressured me into signing paperwork by threatening to foreclose on my house. And I have just been made aware that they have been incorrectly reporting my payment history to the credit bureau. They reported that I missed payments in XXXX and XXXX and that is not true. I made those payments under their 3-month trial.

Company response to consumer: Closed with explanation