Consumer complaint received 2022-08-03
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: LD Holdings Group, LLC (SC)

Forbearance for Borrowers COVID-19 Advance Loan Modification ( ALM ) : Available to owner-occupant and non-occupant borrowers, the COVID-19 ALM is a permanent change in one or more terms of a borrower 's mortgage that achieves a minimum 25 percent reduction to the borrower 's monthly principal & interest ( P & I ) payment and does not require borrower contact. Servicers will proactively mail the modified mortgage documents to borrowers who can achieve the required payment reduction. If the borrower chooses to accept the COVID-19 ALM they will only need to sign and return the mortgage modification documents sent to them by their mortgage servicer.

COVID-19 Recovery Modification : For borrowers who can not resume making their current monthly mortgage payments, the COVID-19 Recovery Modification resolves the outstanding mortgage payment arrearages by adding it to the principal loan balance of the first mortgage, extending the term to 30 or 40 years at the current fixed market interest rate, and targets reducing the borrower 's monthly principal and interest portion of their monthly mortgage payment. The 30-year COVID-19 Recovery Modification must include a Partial Claim if the borrower has Partial Claim funds available. A 40-year COVID-19 Recovery Modification must include a Partial Claim. 


Loan Depot has failed to proceed with completing my loan modification paperwork, after the 12 months forbearance period ended with my loan. The time frame to process this paperwork is 30 to 45 days. My forbearance period end in XX/XX/2022. There were three options that I had discussed concerning the loan modification which where as follows : 1. Refinance the previous missed payments into a second mortgage 2. Lower the monthly payments by 25 % 3. Extend loan up to 40 years I sent in the paperwork ( via fax on XXXX ) for the loan modification as required. I called Loan Depot on XXXX. I was told that the loan modification paperwork was received, and a processor would be assigned to complete the paperwork. On XXXX, I called to check the status of the loan modification paperwork. I spoke with a gentleman that stated it could take up to 60 days to get an answer to the modification. The department that had to process the paperwork was behind. So, I just needed to be patient, because the system was notated that the loan modification paperwork was to be processed. Furthermore, he stated that since the paperwork was received, everything was still on hold concerning the loan. He went over all my options again concerning the modification. So, 60 days after that call on XXXX, I called to follow-up on the status of the application again for the third time. I spoke to a different person. He stated that the paperwork still had not been processed, and he apologized. Furthermore, he stated that since it had been more than 60 days with the loan modification paperwork not being completed, he would escalate the situation. He explained to me that he was going to forward the paperwork over to his supervisor to complete. He scheduled a telephone appointment with me to speak with his supervisor on XXXX at XXXX. This scheduled telephone conversation was notated in Loan Depot 's computer system. Unfortunately, I never received a telephone call from his supervisor. In addition on XXXX, I spoke with the payment department at loan depot. The person that I spoke to said the loan modification paperwork was not complete. I followed up again on XXXX, after not receiving any updates from anyone at Loan Depot as previously stated. After speaking with an agent, the person on the phone said " You need to complete another loan modification application, since your original loan modification application was received back in XX/XX/2022, more than 77 days earlier. The person on the phone emailed me a new loan modification package. I faxed it on XXXX. I followed up on XXXX. At that time I was told one page of the application was missing. I was sent a third set of loan modification paperwork. I faxed it on XXXX. I followed up on XXXX, and I was told that it was received. Consequently, I was told that I would have to wait another 30 to 45 days to get the third application completed, even though Loan Depot failed to process my original application from back on XXXX, with no explanation as to why. As a result, they started foreclosure proceedings even though this is clearly Loan Depot 's error with not processing the modification paperwork in a timely manner.