Consumer complaint received 2023-03-23 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: LoanCare, LLC
State: CA

Complaint narrative:
I have a loan that is serviced by Loancare. During the Pandemic, I took advantage of the forbearance program. Once the timeframe was over, I contacted them and chose to refinance my loan. Loancare sent over the offer, I signed and notarized it and returned it. The interest rate was 3.125 % however here is what ended up happening I return my modification on XXXX I called to start my payment in XX/XX/XXXX, however I was told to wait. And wait and wait. Eventually I was told they never received my paperwork. However, it was processed and filed with XXXX XXXX on XXXX. It was even put into my file on XXXX. So every time Loancare claimed that the paperwork was never received and filed... they lied. XXXX XXXX informed me that Loancare had told a subcontractor to destroy the documents. 

XXXX New loan modification was generated - but failed to be sent out XXXX XXXX New loan modification was generated - but failed to be sent out XXXX New loan modification was generated - but failed to be sent out XXXX New loan modification was generated - but failed to be sent out XXXX New loan modification was generated - but failed to be sent out XXXX New loan modification generated. 5.75 % I received it in XXXX, returned it signed and notarized with an XX/XX/XXXX payment. According to XXXX XXXX ( supervisor in Loss Mitigation ) Loancare destroyed my signed documents. 

XXXX Loancare filed default on my house - first step of foreclosure. 

XXXX Loancare sent out another loan modification this time the interest rate was around 7 %. 

XXXX I was sent a document showing that my original loan modification from XX/XX/XXXX was not only received by Loancare, but signed by the mortgage company, and filed with the county courts. I was then told that I was never supposed to receive those documents ( even though it proved Loancare lied ). 

An employee XXXX attempted to have me agree to remove the loan documents from the county to which I refused. This is when I was transferred to XXXX. 

XXXX XXXX verified that Loancare only attempted to call me twice during this timeframe, with one of the phone calls being an immediate hang up. 

Loancare held me in a suspended status for foreclosure and refused to file a rescission for over four months. During this time, the housing market changed, and I was prohibited from applying for any kind of loan or relief. I couldnt sell my house or attempt to buy a car. Loancare erroneously reported me in default and with missing payments for 3 years. This is during the covid relief period. 

XX/XX/XXXX - XXXX XXXX XXXX of the Office of the Customer finally sent me an email stating that Loancare would be removing the foreclosure proceedings with the county. MONTHS after they knew about it. It took even longer to fix my credit. 

It was the verified by XXXX XXXX that I was to receive a 30 day advance written notice before payments were to resume. I needed to have time to review all the documents. HOWEVER, I received the completed packet on XXXX ... With a payment date of XXXX. And now Loancare is ghosting me completely. 

XXXX XXXX - Office of the customer has ignored every call and never returned the 8 or so message I have left to discuss this. I have been told that Supervisors would be calling me, and I have yet to receive a call to resolve this. 

Every phone call is " recorded for quality assurance purposes '' but now they are refusing to allow me to record their calls even though Loancare already established that the calls were recorded. 

This is being done because if I didn't push back, they would own my house at a cheaper rate, when the value doubled. And the interest rates doubled. 

**Here is a list of their violations : Real Estate Settlement Procedure Act - Continuity of Contact CFPB requires a notice of default to be sent. Loancare never sent one CFR 1024.35 ( i ) no error-recording 1024.38 Reasonable Policies and Procedure Accurate information 1024.40 ( b ) ensure assigned personnel can perform certain functions and give accurate information 1024.41 ( b ) Services must exercise reasonable diligence in obtaining documents and information. 
1024.41 ( f ) prohibition on foreclosure referral unless the borrower rejects all offered loss mitigation 1024.41 ( f ) ( 3 ) - procedural safeguards records retentions call logs, servicing notes, other systems of records cataloging communications Breach of contract Negligent misrepresentation Statutory Fraud of a loan transaction Tortious interference with a contract Intentional infliction of emotional damage Wrongful Foreclosure / Duel Tracking Unfair, deceptive, or abusive acts or practices " Attempted to destroy hide misrepresent and eventually remove the signed and notarized loan modification that was filed with the court. 
Improper credit reporting Not providing billing information in writing 30 days to resolve the issue ( over 6 months ) Special note. Loancare is held to a higher standard as a loan servicer. They can be held for these damages. 

Weimer V. Nationstar Mortgage " Special relationship is that the plaintiff was an intended beneficiary of a particular transaction but was harmed by the defendants negligence to carry it out. '' Loancare never sent me a 30 day written notice before my loan modification situation was finally resolved. They sent a packet dated XX/XX/XXXX, which I received XX/XX/XXXX which indicated a XX/XX/XXXX payment. I immediately called for clarification and for confirmation that I was either not getting a 30 days notice, or if Loancare was going to write off the XXXX payment. I have been strung along without a call back for 2 months. 

I also faxed over a request for the recording of the calls made between myself and Loancare during the timeframe of XXXX through XXXX to which they never responded, nor provided. I was denied the information was to what I was allowed to request by XXXX XXXX on XXXX and XXXX XXXX on XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation