Consumer complaint received 2018-04-17
Company: LoanCare, LLC
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
My wife lost her job in XX/XX/XXXX. She received unemployment benefits until they were exhausted. During that time, XX/XX/XXXX, my wife was looking for work and ended up having serious health issues. After getting back on her feet and finding a job, things were spiraling downward consistently. We contacted Keep Your Home California ( KYHC ) in hopes for assistance with our delinquent mortgage. KYHC had a principal reduction program that we qualified for. We informed Loancare that KYHC was going to try and help us bring our mortgage current and work with Loancare to bring our mortgage down to an affordable payment for us. KYHC told us that they werent getting any responses from anyone, and when they did speak with someone, they said that the company was only willing to do a curtailment. KYHC told us that they needed our company to buy us out of the pool or sale our loan to someone who is willing to work with KYHC fully, because thats the only way that they could help us. Meanwhile Loancares Loss Mitigation Department was trying to come up with a solution for us, which was great, except it wasnt affordable for us, so we appealed. And when we called Loancare to try to get them to work with KYHC, it didnt go so well. So time lapsed and we lost the benefit of KYHC. One great thing is that KYHC said we could apply at a later date if something changed.

We applied, reapplied and appealed with Loancare, because the payments offered in the modification were still unaffordable to us and would have resulted in immediate failure on our part. We would have eagerly accepted and was hoping for a mortgage payment just a few hundred dollars less than the modification plan offered us. Through Loancares modification, they came up with a payment of roughly {$2100.00}, when it was roughly {$2600.00}. {$2100.00} is lower than what the payment initially was, however, it is at this time is still out of our reach. I work a full-time position and am XXXX XXXX. We are now being given the option to short sale or foreclose. And that is not what we want to do. 

We would like to know why Loancare, who is our servicer, cant communicate with the lender to buy us out of the pool or sale our loan as KYHC suggested. It would be great if an obtainable modification could be reached. We knew that we had to choose assistance from KYHC or Loancares Loss Mitigation Dept. so we made it clear that we wanted to go with KYHC because it offered more help to us, it was working on our behalf, keeping us in our home, with the goal of lowering our mortgage payment so that it would have been affordable for us. According to HUD, our lender should do everything possible to help us remain in our home. We are pleading with our servicer and lender. What seems like a really great option to us, they dont seem to want to consider. My question to them is why not? We would accept a lesser modification determination, something we could reach, without failure.

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