Consumer complaint received 2019-08-04
Company: LoanCare, LLC
State: DE
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
We purchased our home in XXXX of XXXX with a mortgage through Loan Care. In XXXX of XXXX, we asked about lowering our payments due to the co-borrower being laid off. At that time Loan Care suggested we ask for a " hardship loan modification ''. We were advised at that time to stop paying our mortgage. We asked if not paying our mortgage would affect our credit or put us in danger of foreclosure. The associate at that time stated neither of those things would happen because we would be in a loan modification. We submitted all documents to Loan Care and awaited an answer. In XXXX of XXXX, we were reported as late to the credit bureaus. When we called Loan Care we were then advised that we would be reported late during the modification. We advised what we were previously told and the associate advised us that is not correct. We did not feel comfortable continuing at this point because it had already been 2 months and the modification application was still being " reviewed '' and they could not give us a time frame. The associate advised us they would not accept any payments from us because we were in the modification process. They also advised us that if we were to mail a payment they would return it. The associate assured us that the decision should be made soon and to be patient. We were highly uncomfortable but due to our financial situation and Loan Care stating we could not pay, we had to continue with the modification. In XXXX of XXXX, I was confronted by a " field agent '' when I came home from work and they were taking pictures of our property. The agent advised us this is done because they need pictures of the property in case of foreclosure. We immediately called Loan Care and that is when a customer service associate advised us that the property could go in to foreclosure until we are approved for the modification. We demanded at that point to make a payment to help bring the account current but the associate refused to take our payment unless it was for the entire past due balance. They also stated that they are experiencing high volumes of modifications due to a series of hurricanes that are affecting borrowers. The associate again stated they will not take a payment and if we tried to mail a payment, it would be returned. The associate advised us we need to wait until modification approved but could not supply a time frame. We were extremely uncomfortable with this process and decided to pay the entire amount that was past due, {$5100.00}. This was amount given to us by Loan Care in order to bring the account current. When we made the payment on XX/XX/XXXX, the associate, Agent ID XXXX said we would remain in the modification process. During this time we were in email contact with the Loss Mitigation team at Loancare and continuously emailed them. The Loss Mitigation team repeatedly mishandled our documents or stated everything we sent was not received and we would need to resend. On XX/XX/XXXX We received a certified letter from Loss Mitigation at Loan Care advising us we were approved for a FHA/HUD assisted modification and would be on a trial payment plan. We had to make 3 payments under this trial, XXXX, XXXX, and XXXX, before our HUD assisted modification would go in to affect. We made all payments on or before the due date. During this time, we had to send back the HUD Modification documents certified. The first time we sent it, they stated they didn't receive it even though we supplied a tracking number. It took 2 more times of us having it certified and sent overnight mail for them to receive it. However, Loan Care stated they received the packet late and closed our modification file and denied us. They never advised us of this. Every month we would send emails to 2 contacts at Loan Care asking the status of our modification but never received a reply. We also called every month and were advised the modification is processing and the correct payment amount hasn't been determined. During this time we were denied making payments by Loan Care associates and were again advised all payments mailed would be returned. Every month we would call and email yet received no reply 's. This continued until XX/XX/XXXX when we received a notification through XXXX XXXX that our mortgage entered in to foreclosure. We never received documents or letters from Loan Care regarding this. When we called Loan Care that night, we were advised that our modification was denied because they did not receive our modification packet notarized in XXXX. We had proof, in the form of a tracking number through XXXX anXXXX XXXX XXXX ( since we sent them 3 times ), as well as an email of the documents scanned, that the packets were received by the XX/XX/XXXX deadline. We emailed our contact in Loss Mitigation, XXXX XXXX and he finally replied. He stated the foreclosure process was incorrect, they had our documents before the deadline of XX/XX/XXXX but no one processed it, and that the foreclosure would stop and all fee 's associated it with it would be credited to our account. We made a bulk payment for the months that Loan Care refused to take payment and entered into a modification agreement with a lowered mortgage payment. 2 months later when we paid our XXXX mortgage, the amount we had to pay increased by over {$300.00}. When we called to determine why, we were advised our taxes increased significantly and our escrow was short. We were advised an analysis was done in XXXX but we never received any documentation or letter stating our payment would increase. We also researched our taxes and they did not increase. We asked for another analysis done and for them to review the tax information since the amount they stated it increased, over {$2000.00} annually, was obviously incorrect. It was at this time we also learned that {$880.00} in attorney fees were not credit back from the foreclosure. During XXXX, XXXX, and XXXX we waited for another analysis to be done but they did not completed it until the end of XXXX. During this time we were advised by Loan Care to  pay our original modification amount since escrow shortage is in dispute. Loancare has  reported us late to the credit bureaus as non payment during this even though we've paid every payment. It was determined that Loan Care applied 3 of our payments to a " Suspension Account '' during this dispute and never applied at least one of them to our account. Since XXXX, Loancare has ceased to reply to us and when we try to make a payment, they refuse to take it for the amount that Loan Care advised us our mortgage payment would be with the escrow shortage. They also have never replied regarding why our tax information differs from theirs. At this time they are threatening to put us in foreclosure again. 

We have attached email correspondence that verifies all the information we discussed. Also, we've included a letter/email we have sent to the management and corporate board of LoanCare. We've included statements that show our account has not been credited the {$880.00} in attorney fees and our misapplied 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