Consumer complaint received 2020-03-31
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: LoanCare, LLC (AZ)

I received Loan Cares response, complaint XXXX and I wanted to respond back to what they believed was a legal sale. According to your reply, you said ... Our records indicate a Substitution of Trustee was recorded on XX/XX/XXXX ( copy enclosed ). According this document, XXXX XXXX was the appointed as successor Trustee under the original Deed of Trust. Ms. XXXX remained the successor Trustee after the loan was service released to LoanCare. Please note, the investor of the loan did not change when LoanCare began servicing the loan. As such, there was no need to record or assign a new Substitute of Trustee. We have confirmed the foreclosure sale was conducted in a proper manner and in accordance with the foreclosure requirements of Arizona.

My response to your process of a Nonjudicial Foreclosure 1. To officially start a nonjudicial foreclosure in Arizona, the trustee records a notice of sale in the land records. The sale date cant be any sooner than 91 days after the date the trustee records the notice. ( Ariz. Rev. Stat. 33-808 ( C ) ( 1 ) ). I received notice of sale afterwards.

2. Never received a notice to the borrower from XXXX XXXX on behalf of Loan Care which received my loan XX/XX/XXXX. The trustee, XXXX mails the notice of sale to the borrower by certified mail within five business days after recording it. ( Ariz. Rev. Stat. 33-809 ( C ) ). Pre-foreclosure Letters The notice of sale is the only official notice about the foreclosure that most Arizona homeowners get in a nonjudicial foreclosure. However, before the foreclosure starts, most homeowners receive : a breach letter ( required by most deeds of trust ) and letters informing the homeowner about foreclosure avoidance options ( required by federal law ). Notice to the public. The trustee also publishes the notice of sale in a newspaper for four consecutive weeks, posts it on the property at least 20 days before sale, and posts the notice in the court building. ( Ariz. Rev. Stat. 33-808 ). Mortgage Law had no idea my loan was with you until I accidently revealed it while trying to find out who was responsible for this purchase.

Right to Reinstate the Loan Catching up on the missed payments, plus fees and costs, to stop a foreclosure is called reinstating the loan. You did not give me any right because you kept diverting my calls to XXXX who no longer owned my loan. 

Arizona law permits a borrower to reinstate a defaulted loan before XXXX XXXX. mountain standard time on the last day, other than a Saturday or legal holiday, before the sale date. ( Ariz. Rev. Stat. 33-813 ). I did not know about the sale until after the money was deposited in my escrow account by XXXX 2 days before their purchase and without my knowledge on XX/XX/XXXX. 

Liability for a Deficiency Judgment In a foreclosure, the total debt the borrower owes often exceeds the foreclosure sale price. The difference between the debt and the sale price is called a deficiency. For instance, say you owe {$400000.00} to the loan owner ( the " bank '' ), but the foreclosure sale brings in just {$370000.00}. The deficiency in this example is {$25000.00}. There was a problem with my deficiency and I did not get a receipt of the sale by the lender. Also, on XX/XX/XXXX, I called XXXX XXXX ; provided my social security number and zip code. They still have me as a debt holder. How am I a debt holder when the house was sold to XXXX who has not been to the house because my mail is still being received there even after I moved and changed my address. 

Where was the deficiency judgment. Under Arizona law, the bank can't get a deficiency judgment after a nonjudicial foreclosure if the property is : 2.5 acres or less, and a single one-family or a single two-family dwelling. ( Ariz. Rev. Stat. 33-814 ( G ) ). ( To learn more, see Deficiency Judgments After Foreclosure in Arizona. ) Otherwise, the bank may generally obtain a deficiency judgment by filing a separate lawsuit within 90 days after the nonjudicial foreclosure sale. 

According to my knowledge, regardless of the reason for a loan transfer, I should had addressed my issue according to the law prior to Loan Care deposit of {$14000.00} with the projection of XXXX for XXXX to XX/XX/XXXX in escrow. I am concerned about any kickbacks and unearned fees because of my lack of knowledge of the deposit in the account prior to the sale and me not being involved with the sale. Unfortunately, I do not have money for an attorney, so my complaints is my way of getting my justice. I was not able to turn the keys in to anyone and the buyers office is in XXXX XXXX, CA where they are being quaritein. Where is XXXX XXXX, who claimed to have owned rights to the loan? I'm still waiting on a response from the owner before they sold it to the new owner while Loan Care was accepting the money. By the way ... My address is XXXX XXXX XXXX XXXX, XXXX, AZ XXXX. 

Still being reviewed by AZ Attorney General