Consumer complaint received 2022-01-20
Company: LoanCare, LLC
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
Summary : Loancare was reporting I have a 60 day late payment for a month that was 6 months after I sold my home. I disputed it and they updated it to show that I have a 60 day late payment 14 months after I sold my home. 

I was 60 days late on my mortgage in XXXX. I decided to request deferred payment under the COVID relief tools. I then sold my home and completed the sell on XX/XX/XXXX. I used the proceeds to pay off my debts and waited a year to rebuild credit so I could apply for a new loan. In XX/XX/XXXX I applied for a new loan and found that Loancare was reporting I had a 60 day late payment for XX/XX/XXXX ( 6 months after sell of home ). I sent a formal dispute to the fax number they provided on XX/XX/XXXX. Loancare sent me a formal letter stating there was no error in their reporting. 

I proceeded to have my lender pull a fresh credit report to see if the error was corrected. We found that Loancare removed the XX/XX/XXXX 60 day late payment record but added a XX/XX/XXXX 60 day late payment ( this credit report was pulled in XX/XX/XXXX so it was for the same month as the dispute resolution letter ) I contacted a supervisor at Loancare to have them review. She told me to just go around the error and submit proof it was paid to obtain a new loan. She provided an email I could resubmit my new dispute. 

On XX/XX/XXXX I resubmitted my new dispute of the XX/XX/XXXX 60 day late payment via email and contacted my lender to see if we could get approved providing the proof that the loan was paid off. My lender contacted the underwriter manager who denied my loan due to the " recent '' late even with proof provided. 

On XX/XX/XXXX I received a letter from Loancare acknowledging that they had reported XX/XX/XXXX as a late payment and corrected it but still did not acknowledge the XX/XX/XXXX late payment. 

At this point I have too many hard credit pulls trying to get this resolved and Loancare is still no closer to resolving the " floating '' 60 day late payment. 

I started this process in XX/XX/XXXX with a goal of purchasing a home in XX/XX/XXXX so I would have adequate time to relocate before my rental lease expired. My rental lease is now expiring with XXXX and I have an option to be homeless or pay a higher premium to stay where I am at currently. Loancare 's actions are having a direct impact on my inability to find housing and having impacted my XXXX XXXX negatively with additional hard inquires. As of XXXX they will have a direct negative impact on my finances with the lease expiring and inability to have found housing timely. 

I should also note that I have disputed this will all credit bureaus and have had no success. 

My assumption is that Loancare did not properly close out my forbearance as the original " 60 day late '' was 60 days following the month my forbearance would have ended. Then, instead of figuring that out they updated it the current month of the last dispute.

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