Consumer complaint received 2015-07-14
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: LoanCare, LLC (CO)

Knowing what I know now makes me believe my wife and I suffered a wrongful foreclosure XX/XX/XXXX at the hand of LoanCare, a servicer of XXXX XXXX. I lost my job XX/XX/XXXX. Despite significant financial challenges we stayed current on our mortgage payments. XX/XX/XXXX we were reaching the end of our ability to continue to make the payments. We openly communicated our situation to LoanCare in pursuit of obtaining a " short sale '' agreement. After our XXXX renters moved out, we had a family that wanted to rent the home. LoanCare said that they would immediately place us in foreclosure if we rented the home. With the assistance of a great Real Estate Agent, we received an offer to buy our house without contingency. It was below our balance due on our mortgage, but at the time we had the means of making up the difference. When we ask LoanCare for a payoff balance for the HUD statement that was required for the close of the transaction they refused to proved the the payoff balance. They said they had already placed our house in the foreclosure process and that our mortgage file was in the hand of an attorney in XXXX. Additionally, they said I would have to contact the law firm in XXXX for the payoff. I contacted the law firm in XXXX, XXXX for the payoff. They advised me that they could see the loan file number on their computer but the actual file was in storage that was not accessible to them and the needed pay off quote would have to be provided from LoanCare. Again, I called LoanCare and talked to several people including what was represented as a manager and was told they could not provide the pay off balance. I actually ask, " if I was going to bring a briefcase of cash to pay off my mortgage, where do I deliver the cash and how much do I bring? '' to which LoanCare said, " we ca n't tell you that ''. 

I reviewed this with my Real Estate Agent. The offer to buy came with a generous period in which to close because it anticipated the need for time to get the payoff due to the " robo signing '' case in XXXX. We did n't have the money for an attorney and there where no loan modification programs at the time. 

What I have learned since leads me to believe that because I had Mortgage Protection Insurance there was a motivation for LoanCare to not be corporative with me because they were pursuing what was believed the best path to minimize their risk of loss at our expense. 

Had we just been able to get the pay off, we could have sold our house. Hence, the absolute horrifying pain of a foreclosure and a lingering deficiency that the MPI insurer is holding will forever render my wife and me financially crippled. The outlook for use ever owning a house again is grim. My wife and I both are college educated, hard working, and until the events of XX/XX/XXXX had an outstanding credit rating for over 20 years. I feel that the incompetence of LoanCare cost my family in a very unjust way. I do not make any excuses that we were near the end of being able to meet our obligations. But, LoanCare at the moment of our weakness forever and unnecessarily ruined the rest of our financial life. With a bit of corporation, the loss incurred by both parties would have been less. LoanCare was incompetent, negligent and careless. I would like for them to share in the cost of pain that was imparted on my family. 

I only found out about the Bureau of Consumer Financial Protection today. Writing this makes me feel better. I know time has passed, but I do hope there is something that you might be able to do to right what I know in my stomach was a wrong. Perhaps something. We lost our credit and our hard earned equity. Today, among other credit challenges, we deal with the American Dream of home ownership shattered.