Consumer complaint received 2016-03-07
Company: LoanCare, LLC
State: MT
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
my husband had a XXXX XX/XX/XXXX. our lender was required by law to work with us and gave us a loss mitigation for 12 months. as soon as my husband was able to return to work before the 12 months was up, they sent us a nasty letter demanding over {$7000.00} in back payments and over {$2700.00} for some terrible very expensive insurance they purchased, when it was due to their incompetence that our good insurance in escrow had gotten dropped because they kept paying it late, causing there to be alot of late charges and increasing the overall cost of the insurance. but that 's a secondary problem. after a loss mitigation loancare/XXXX- was suppose to have offered us a payback agreement arrangement or give us a modified loan which would have put the missed payments onto the end of the loan, which we mistakenly had believed they had already done. but they offered us nothing. they sent the letter dated XXXX XXXX, but we did not receive it until XXXX, and the deadline to file an appeal they set on XX/XX/XXXX. so we barely had any time to file an appeal. i managed to hand write a very sloppy one and get it mailed on XX/XX/XXXX. what they have done is to invalidate the entire loss mitigation purpose. they knew we did not have an extra {$9000.00} at that point just lying around to give them. they were angry at having to give us the loss mitigation in the first place. but this has to be a violation. they also XXXX so his credit rating has become so poor, that when we tried to get new house insurance there was n't one company that would pick us up anywhere! suddenly due to conditions beyond his control, and after never before missing a mortgage payment, or filing a house insurance claim of any kind, he was such a high risk as to be completely uninsurable! this company is disreputable and should be put out of business, they started foreclosure proceedings after wer were late once by five days with our payment. when we tried to make payments twice they refused to take our money, yet they keep sending letters stating we are now two payments behind, but they wo n't take our money. then we found out they have refused to put our XX/XX/XXXX payment on our loan. so they have our {$540.00} just floating around somewhere. they sent us an apology letter, saying they had meant to tell us our new payments were {$700.00} but they were still foreclosing! now my husband is a veteran and we had been working with the va home loan program and were told they would refinance our mortgage if loancare would remove all its demonizing and libelous bad credit reporting, we did not miss any payments. we had a loss mitigation and kept up with all that was required of us for almost a yr. during a very difficult time in our lives when we did n't have XXXX cents to rub together! this negative credit reporting is obviously just done by robo computer program. its not as if XXXX just decided one day to quit making his house 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