Consumer complaint received 2026-06-29 00:00:00
Product: Mortgage — VA 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: FL

Complaint narrative:
I have a XXXX mortgage serviced by LoanCare. I am submitting this complaint because I believe LoanCare mishandled my VA loss mitigation review, failed to properly communicate the status of my XXXX application, failed to respond meaningfully to my deed-in-lieu request, and then allowed the loan to move into foreclosure while preserving possible deficiency judgment rights. In 2025, I was working with LoanCare on VA loss mitigation through the XXXX program. I contacted LoanCare multiple times, at least XXXX or XXXX separate calls, and was told that I had been approved and that I simply needed to wait for paperwork. I relied on those statements. During this time, I was not required to make payments while the XXXX review was pending. I was not clearly informed that the XXXX program was ending or that my file would not be completed before the program expired. After contacting LoanCare again, I was told the XXXX program was no longer available. By that point, the loan had become severely delinquent. LoanCares XX/XX/scrub> 2025 notice stated that the loan was due for payments from XX/XX/scrub>, 2025 through XX/XX/year>, with monthly payments totaling {$20000.00}, late charges of {$680.00}, and a total amount due of {$21000.00} to cure the default. Since that time, the delinquency has continued to increase, and I estimate the total arrearage is now approximately {$40000.00}. I also submitted a deed-in-lieu request because I was trying to resolve the matter without foreclosure and avoid any remaining liability. LoanCare did not provide a clear written approval, denial, missing-document notice, or explanation of next steps. My HOA account is current and paid up to date, so I am not aware of any XXXX delinquency or association XXXX issue that would prevent deed-in-lieu review. I have now received foreclosure documents. The foreclosure complaint states that the alleged default began with the XX/XX/scrub> 2025 payment and seeks foreclosure of the mortgage. The documents also indicate that a deficiency judgment may be pursued or preserved. This is extremely concerning because I was told that the loan was XXXX and that I should not be personally liable after foreclosure. I understand there may be a difference between liability to the VA and a deficiency judgment sought by the lender or loan holder, so I am requesting urgent review and written clarification. I am not trying to avoid resolving the debt. I am trying to avoid being penalized after relying on repeated statements from LoanCare that I was approved for XXXX and should wait for paperwork. I am also trying to avoid foreclosure or, if I must give up the property, to resolve it cleanly with no deficiency or remaining personal liability.

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