Consumer complaint received 2022-05-13
Company: LoanCare, LLC
State: MN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
We obtained a Covid mortgage forbearance in XX/XX/XXXX from XXXX. The loan was subsequently transferred to LoanCare for servicing. In XX/XX/XXXX, we received a document stating the loan had been modified and would be coming out of forbearance. We subsequently signed, notarized and mailed a loan modification document as requested. When we continued to make payments, they were not reflected on the LoanCare website. We were advised that our payments were being held " somewhere '' until the process resolved. Later, when we were variously advised that LoanCare could either not locate the modification documents or that they contained errors, we were asked to sign and notarize an entire second set of loan modification documents. Loan Care failed to produce a current account history to enable us to re-finance this mortgage at a lower rate, which was the sole reason our refinance did not go through, leading to thousands of dollars in additional costs over the lifetime of the loan. 

Since XX/XX/XXXX, we have spent countless hours on the phone with XXXXLoanCare representatives to resolve this issue. We have received inconsistent instructions and documents in the mail with inaccurate dates and deadlines to sign from XXXXLoanCare. XXXX/LoanCare representatives advised us to stop payments. 

We are now receiving threats of foreclosure in the mail claiming that they have failed to make payments on the loan. At one point, we spoke with XXXX who represented herself to be a supervisor of supervisors in the Loan Modification Department. XXXX claimed she would be our " advocate '' and apologized for everything that had happened on the account. She claimed she would call us back and resolve all of the issues with the underwriting department. She has refused to provide an extension or direct number to contact her. She has not resolved the issue. 

During XX/XX/XXXX, our lawyer has repeatedly attempted to reach XXXX. She spoke with supervisor XXXX who sent XXXX a direct message to call me back. XXXX advised that she was working on the file and knew about the issues and that it would be best to wait to talk to XXXX about the file. Most recently, on XX/XX/XXXX, our lawyer left another message with a representative to ask XXXX to call her back. She has failed to return the call, despite the issues with the Loan. 

To date, the issues with this XXXX have not been resolved in spite of our diligent efforts. Instead, XXXXLoanCare has XXXX reported missed payments to credit bureaus to the detriment of my clients ' credit. XXXX/LoanCare merely continues to send confusing letters advising that they do not have enough information to resolve the credit bureau reporting issues. XXXXLoanCare has failed to send the correct loan modification documents after repeatedly promising to do so. XXXXLoanCare 's failure to remedy the situation in a timely manner is causing us an inordinate amount of stress and financial difficulties. XXXXLoanCare is now refusing to even accept payments.

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