Consumer complaint received 2022-06-24
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: LoanCare, LLC (MI)

Good afternoon, I was approved for a forbearance plan related to the covid-19 pandemic with LoanCare in XX/XX/XXXX. 

In XX/XX/XXXX, I was ready to end the forbearance, and I received information from LoanCare regarding a Trial Period Plan for a mortgage modification. The three consecutive payments of {$840.00} were to be made in XXXX, XXXX and XX/XX/XXXX. 

I made the {$840.00} payments on XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX in XXXX to LoanCare according to the Trial Period Plan for the mortgage modification. After these payments, I was to wait for LoanCare to put together the new modification agreement While I waited, I would contact LoanCare every month to make sure no payments were needed from me, and they continued to tell me I had to wait for the agreement to be put together by their underwriting team and that I would receive it in the mail. 

XX/XX/XXXX comes along and I received information regarding XXXX and the Michigan Homeowner Assistance Fund ( MIHAF ) Program. The program would help homeowners pay outstanding forbearance balances so I applied. I was approved, but in order to receiving the funding from the MIHAF program, I needed to remove myself from the mortgage modification process through LoanCare. I submitted a letter to LoanCare on XX/XX/XXXX, asking them to remove me from the modification process in order to receive the grant assistance from XXXX and the MIHAF Program. I was removed from the loan modification process. 

It's now XX/XX/XXXX. LoanCare received the grant from the MIHAF Program totaling {$15000.00} on XX/XX/XXXX. The grant covered my LoanCare balance through XX/XX/XXXX. My XX/XX/XXXX and XX/XX/XXXX payments were my responsibility and I paid the balance of {$1800.00} on XX/XX/XXXX. My account is now current and my next payment is due on XX/XX/XXXX. 

I was interested in refinancing last year ( XXXX ) due to the fact I have a lot of equity in my house, but after talking with XXXX XXXX from XXXX  XXXX XXXX XXXX I knew I had to make those three trial payments before I could do so. Fast forward to XXXX of this year, I knew I had already made those payments and I was in the process of receiving the grant from the MIHAF Program. I was now ready to refinance. I had reached out to XXXX XXXX in the beginning of XXXX to get the process started. 

To refinance, I have submitted an application, provided proof of paystubs, W2s and bank statements. I have even paid for the appraisal and had it scheduled to be done. Yesterday, XX/XX/XXXX, I received an email from XXXX XXXX stating that, Per Covid guidelines, Borrower must make 3 on time payments after the grant from XXXX which was applied to the mortgage on XX/XX/XXXX and they can not be pre-paid. Loan to be denied and they can re-apply after they have made the 3 on time payments ( payments start XX/XX/XXXX ). I am unsure as to why I have to make three more consecutive payments related to the grant I received because I had already made the three payments in XXXX for the forbearance with LoanCare. 

I provided XXXX  XXXX XXXX with documentation to back up my case to provide the underwriter. They were having a hard time understanding why I made the three consecutive payments according to the Trial Period Plan but then no payments were made after. I explained to XXXX that this was because I was waiting on LoanCare to provide me with the updated mortgage modification documents to sign. LoanCare specifically told me that no payments were required of me during that time because their underwriters were putting together the paperwork. I called LoanCare today, XX/XX/XXXX, around XXXX and spoke with XXXX XXXX confirm this. She said I was correct, and that the loan was being recalculated and reconfigured during this timeframe, therefore no payments were necessary after the trial period plan until I signed and LoanCare signed the new mortgage modification documents. 

After providing this information to XXXX XXXX XXXX, there response was, " I think what you are not understanding is even though you made the 3 payments in XXXX you then stopped making payments. The guideline states you can not apply for refinancing if you have not made at least 3 scheduled payments. During Covid home owners were trying to start refinancing before they had made the required payments. They want to see at least 3 payments are made to show you can handle the mortgage payments again once out of forbearance. The forbearance was used to give relief to those struggling to make payments, by requiring at least 3 payments made the lenders could insure the homeowners were back on their feet and could continue to make payments. By making the payments and then stopping it appears you were not able to maintain payments, I understand it wasnt your fault that Loan Care didnt take your payments but there is nothing we can do to override the guidelines. '' According to these guidelines, the covid-19 forbearance rules and LoanCare 's modification process, I did what was asked of me. There are no guidelines to override. The guidelines were followed and most importantly, I was following the rules set in place of my mortgage servicer, LoanCare. I made the three consecutive payments in XXXX and was able to show I could handle the mortgage payments again. I followed LoanCare 's loan modification process after these trial payments were complete. LoanCare 's modification process and delay in turnaround time should not be held against me in this situation.