Consumer complaint received 2024-03-22 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: LoanCare, LLC
State: NJ

Complaint narrative:
I applied for assistance with my mortgage due to a prior XXXX  for XXXX XXXXXXXX which made me fall behind one month. After over 30 days they came with an denial. 
I have an FHA Loan - Standalone Loan Modification is what I was told it would fall under. 
My question why was it denied? All I get is it was an underwriting decision. I provided all the required paperwork. 
LOSS MITIGATION FOR FHA HOMEOWNERS The Federal Housing Administration ( FHA ) has expanded the COVID-19 Recovery Options for all borrowers in default or imminent default, including non-occupant borrowers, regardless of the reason for default. If you are experiencing a financial hardship impacting your ability to make on-time mortgage payments, contact your mortgage servicer as soon as possible to discuss your options. 

COVID-19 Loss Mitigation FHA offers COVID-19 Recovery Options to eligible borrowers who are 61 days or more delinquent through XX/XX/2025. 

For details on COVID-19 Loss Mitigation visit COVID-19 Recovery Loss Mitigation Options For FHA Homeowners .

HUD 's Standard Loss Mitigation Options Through its National Servicing Center ( NSC ), FHA offers a number of loss mitigation programs and informational resources to assist FHA-insured homeowners facing financial hardship, and whose mortgage is either in default or at risk of default. Those homeowners should contact their mortgage servicer who will evaluate them for one of FHA 's loss mitigation options.

If you have an FHA-insured mortgage, these options may be available to you.

Informal or Formal Forbearance Plan : A Forbearance plan allows a borrower to work with their mortgage servicer to temporarily pause or reduce their monthly mortgage payments and may provide specific terms for repayment.

Special Forbearance ( SFB ) -Unemployment : SFB is available when one or more of the borrowers have become unemployed and this loss of employment has negatively affected the borrower 's ability to continue to make their monthly mortgage payment. The servicer will re-evaluate the borrower for a permanent Loss Mitigation Option to cure a Default once the borrower is gainfully employed and/or the SFB-Unemployment Agreement expires.

FHA Home Affordable Modification Program ( HAMP ) : All FHA-HAMP Options are temporarily suspended through XX/XX/2025, except for non-borrowers who acquired title through an exempted transfer. All other borrowers must be evaluated for the COVID-19 Recovery Home Retention Options. FHA-HAMP is designed to help a borrower who meets HAMP eligibility requirements to avoid foreclosure by establishing an affordable monthly mortgage payment to a level sustainable by the borrower 's current income through the use of one of the following : Standalone Loan Modification : Resolves the outstanding mortgage payment arrearages by adding it to the principal loan balance of the first mortgage and extends the term of the mortgage to 360 months at a fixed interest rate. 
Standalone Partial Claim : Allows mortgage payment arrearages to be placed in a zero-interest subordinate lien against the property. The Partial Claim amount does not require payment until the last mortgage payment is made, the loan is refinanced, or the property is sold, whichever occurs first.

FHA-HAMP Combination Loan Modification and Partial Claim : The FHA-HAMP Combination Loan Modification and Partial Claim establishes an affordable monthly payment, resolves the outstanding mortgage payment arrearages, and permanently modifies the first mortgage monthly payment. The Partial Claim is a zero-interest subordinate lien that will include a portion of the amount to be resolved and if you meet the requirements, a principal deferment. The remainder is added to the principal loan balance of your first mortgage and extends the term for 30 years ( 360 months ) at a fixed interest

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