Consumer complaint received 2018-10-31
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: LoanCare, LLC (NM)

In XX/XX/XXXX my VA Mortgage was transferred to Loancare. I had just almost completed a loan modification program with XXXX and was to make 3 payments in the amount of XXXX, a higher amount than my mortgage payment would be to show good faith. *This is what XXXX advised. I  made my first payment to XXXX on XX/XX/XXXX and my second payment to them on XX/XX/XXXX. When Loancare took  over - I was told to make the third payment to them which I did on XX/XX/XXXX. I received paperwork from Loancare indicating my payment would be {$1200.00} at an interest rate of 2.25 %. When I tried to make XX/XX/XXXX 's payment they would not accept it, stating that they didn't have all the paperwork for XXXX. PLEASE NOTE - I had just gone through a borrower assistance/loan mod process medical hardship ) with XXXX It was my understanding from XXXX AND from Loancare that I was good to go. They apparently started over again, EVEN though I had already made the 3 " good faith payments '' the last being to them. I called in XX/XX/XXXX and XX/XX/XXXX and was again told that they didn't have the paperwork from XXXX. In XX/XX/XXXX I was told my loan was with the underwriter, which I really didn't understand. I then got a notice ub XX/XX/XXXX that there was a lien on my property. We had a total loss of our roof in XX/XX/XXXX and our mortgage servicer at that time, XXXX, did not release all the funds. It took almost another year to get the roofer paid. I immediately addressed this issue with the roofer. He had failed to lift the lien after he was paid, but did so immediately. I provided Loancare with this information and was told and I should have a contract soon. I didn't hear anything else. I called every month and ended up leaving messages with my point of contact - who had changed several times. No one I was actually able to speak to knew what was going on. I called in XX/XX/XXXX and was told that nothing was moving forward because of the lien ... .which I had already dealt with in XX/XX/XXXX. At that point I filed a complaint with you ... the CFPB. I immediately got a contract, but the reason they gave for the delay stated that I did not get the lien taken care of at the time I actually did. The shock came when I read the contract. It stated that my new payment would be {$1700.00} with an interest rate of 4.625 %. When I called them, my point of contact stated that it was because I had an ARM ... and that it the market had changed and it went up. I advised them that both the paperwork from Roundpoint AND the paperwork I initially got from then stated that my rate was 2.25 %. I got no real explanation - may have been that the initial statements were computer generated ... don't know. At that point my wife and I both were devastated and didn't know what to do. It had been my understanding that if I did a loan modification I could not have an ARM and it would go to a fixed rate. Even if they were considering a rate increase due to the ARM that rate was not scheduled to increase until XX/XX/XXXX. I had to sign the contract or lose my home. To add insult to injury - I recently contacted another loan company that specializes in VA loans and makes many of their decisions " in house. '' We thought we were going to get some relief, however, my credit report now shows that I was delinquent on my payments PRIOR to even getting a contract. WE TRIED TO MAKE THE PAYMENTS. Thought things were fine after the " good faith '' payments, etc, etc. Loancare dragged their feet, they made us go through a whole new loan modification, told us month after month things were fine or didn't respond at all, then there was the lien issue and we DID address that immediately. Told over and over it was with the underwriter ... then our payment and interest rate went up a ridiculous amount with no satisfactory reason ... .and now I can't even work with another mortgage company because of the info on my credit report WHICH WAS TOTALLY OUT OF MY CONTROL. I SHOULD HAVE BEEN ABLE TO START MAKING MY PAYMENTS OF {$1200.00} IN XX/XX/XXXX AT 2.25 %. I have researched this company and there are many many complaints. I served my country for 29 years. These people have treated both my wife and I with disrespect. This is unacceptable. Regarding the initial report I filed back in XX/XX/XXXX ... ..that was just to try to get our contract..which..interestingly enough ... I got immediately after I filed the complaint. THIS new complaint is due to the interest rate increase and info on my credit report which is preventing me from being able to work with another loan company.