Consumer complaint received 2023-06-29
Company: LoanCare, LLC
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
Request for Urgent Intervention - Unfair Mortgage Servicing Practices by LOANCARE To whom it may concern, I am writing to you as a citizen of California and a veteran of our XXXX XXXX, to seek your urgent intervention concerning what I believe to be unfair practices carried out by my mortgage servicing company, LOANCARE. 

I purchased my home using my VA benefits. In XX/XX/2023, I lost my job, which resulted in missed mortgage payments. I immediately notified my lender about my situation and complied with all their requirements for financial hardship assistance. My VA representative guided me to request special forbearance, which I did, but there was no response from my lender. 

On XX/XX/2023, I was gainfully employed once more, and I sought to discuss options to bring my loan current. I received no response, and instead, I was informed that my loan was transferred to a new servicing company, LOANCARE. 

Upon receiving my first paycheck from my new employment, I tried to make a mortgage payment online. However, I was unable to, and when I reached out to LOANCARE, I was informed that I had to pay the entire outstanding balance plus an additional {$25000.00}. This response was unreasonable and unjustified considering my previous and current circumstances. 

I believe that LOANCARE 's lack of communication, refusal to engage in loss mitigation, and unexplained increase in the payment amount violates the Consumer Financial Protection Bureau 's ( CFPB ) mortgage servicing rules under the Real Estate Settlement Procedures Act ( RESPA ) and the Truth in Lending Act ( TILA ). According to these regulations, as long as I can afford to pay a mortgage, and have expressed a desire to do so, it is within my rights to explore options for alternative payment plans, forbearance, or modification. 

Furthermore, LOANCARE sent a letter dated XX/XX/2023, requesting certain information by XX/XX/2023 - a deadline impossible for me to meet as I only received the letter on XX/XX/2023. This late communication, I believe, is a violation of RESPA, which requires mortgage servicers to respond in a timely manner to borrowers written notices of error or requests for information. 

Despite the challenges I have faced, I am committed to fulfilling my obligations and seek a reasonable chance to rectify my arrears. I am reaching out to your office because LOANCARE 's practices are denying me my rights as a homeowner and a veteran. 

Given these circumstances, I implore the California Financial Protection Bureau to investigate this matter urgently. I kindly request you to help me engage LOANCARE in a meaningful dialogue to reach a fair arrangement that allows me to repay my missed payments through the special forbearance process. Moreover, an examination into LOANCARE 's practices may also help protect other homeowners in our state from similar unfair treatment. 

Thank you for your attention to this matter. I trust in your office 's commitment to uphold the rights of consumers like me, and I look forward to your response and assistance. 

Sincerely,

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