Consumer complaint received 2020-05-17
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: LoanCare, LLC (MA)

In early XXXX, I logged into my Loancare account to check options to help with my mortgage. I was laid off from my job and was seeking assistance. In big letters on the Loancare website, Loancare was offering a forbearance to anyone impacted by COVID19. That was me. 

I applied to have my mortgage paused while I could figure out the best options. I was approved immediately and was told I would be sent paperwork on the process, but that I do not have to pay my mortgage at this time and for up to 180 days. Perfect, this buys me time to figure out what my options were. 

Within a few weeks of getting approved for the forbearance, I found it best to refinance my loan and take advantage of the industry low rates that would help me save a lot of money and reapply for a 30 year mortgage. 

When I called Loancare, they transferred me to a loan officer at XXXX named XXXX who explained he could help me refinance. I can not get over the level of I professionalism I encountered with this guy who was unaware of who I was and actually gave me someone elses information in an email ( it turned out to be my brother who was in their system ). I literally couldnt get over the fact that he was giving me his personal information like date of birth and other account information via email when he got our names mixed up. Despite me telling him several times, that was not me, he persisted. After filling out the XXXX application, he informed me because I was on forbearance, I had to wait 90 days to apply for a refinance. I explained to him that I told him this from the first conversation and he told me there was nothing he could do. 

I couldnt believe this, so I called Loancare yet again and spoke to someone who took me off forbearance and I caught up my loan for the time it was paused. They said doing this would allow me to refinance with no issue and advised I do so that day, which I did. Paid in full. 

I then asked to speak to someone about refinancing and they finally called me back and were confused as to why I was sent to XXXX when they didnt handle my initial loan. I told the Loancare loan officer, that Loancare transferred me to XXXX. They were surprised by this. 

After Loancare Officer reviewed my account, they told me I can not refinance for 90 days because I was recently on forbearance ( with them ). I was shocked to hear this as I was never informed of this when I entered into the program and also got completely caught up. No past due and never a late payment. I asked them where it said this and they told me it just is that way. 

I asked for a copy of the statement that says anyone who enters into COVID19 forbearance can not refinance and they said its on internal documents and they can not send those to me. I once again told the loan officer that this was never explained and asked if there were any alternatives and they said there were none and I just had to wait the 90 days to reapply and hung up on me. I was blown away by this.

I called Loancare again twice and left messages for anyone to call me back. Ive never heard from anyone and continue to receive notices that Im on forbearance and even a notice that says Im two months past due, which I am not. Even if I didnt get my account caught up, which I did, the whole idea of forbearance is a pause in payment. Why am I getting notices stating my account is overdue in one letter and another explaining I am in forbearance and dont have to pay anything at this time in another? 

I feel like I have been grossly mislead and defrauded by Loancare. They made it very easy to enter into forbearance for the self serving purpose of keeping me tied to the high interest rates and not being able to take advantage of the low rates available now and allowing me to help myself during a very difficult time when I have been adversely impacted by COVID19. 

I was never made aware of the inability to refinance for a specific timeframe when I entered into this forbearance program and despite paying up my account and never having missed or had a late payment, the company is clearly taking advantage of me. I have called and emailed in an effort to try to seek alternatives and have had none other than for me to pay my loan amount and wait 90 days and miss out on record low refinance rates. This was a complete scam. 

My credit score is an XXXX as of today. Ive never had an issue like this and despite reaching out to this company about a dozen times to try to resolve this, theyve offered no help and are only trying to make it hard for me at this point. They are going to cause me to enter into financial hardship as a result of not allowing me to refinance and I believe this program that was shoved in my face and made as simple as clicking a button was designed to handcuff me to their high interest rate and they are purposefully making this process difficult. 

I dont know where else to turn beside reaching out here, to HUD and an attorney to expose and hopefully attempt to recover what has been damaged here and genuinely hope Loancare can do the right thing rather than taking advantage of the current COVID19 pandemic. 

Between the unreal experiences Ive had so far with this mortgage servicer, Im not sure where else to turn besides these actions. No one at Loancare seems to be listening and those who I spoke to were unprofessional, non-empathetic and very unhelpful. I can not believe the incredible lack of empathy and how disinterested Loancare is with helping me create alternatives other than foreclosure and future damages as a result of their incredible lack of communication and self serving polices that are taking advantage of people during a time when they should be helping to create alternatives outside of foreclosure and financial hardship.