Consumer complaint received 2024-04-05 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: GA

Complaint narrative:
Hello, My wife and I have been locked out of our payment portal since the XXXX XXXX pandemic. We were told in XXXX after the forbearance period that our arrears which was under XXXX ( at the time ), would be " put on the back end of our loan '' which would be extended to a 40 year and " we could continue our regular monthly payments ''. Instead, we received a modification that increased our interest rate as well as our monthly payment. We were then told that " it was a mistake '', and we could write 'decline ' on the offer and return it to lender ( which we did ). We also requested that Loancare , LLC allow us access to our payment portal in the meantime so we would not be stuck with a large payment. We were told they " could not accept our payments while in a modification ''. 

We then reapplied for the original request ( to have the forbearance on the back of the loan ) and resume our payments, but after approximately 6 months we were denied and told to pay " the entire amount due ''. We were told again that " for some reason, we were getting put into a modification that was not the XXXX XXXX '', and that they would " put us into a more streamline modification through XXXX ''. We were told the process would take 30-60 days and once again, approximately 5 months later we were put into another modification that increased our monthly payment and interest rate. We again denied the increased rate and our payments in arrears continued to grow as they again refused to allow access to our payment portal. 

In XX/XX/XXXX, we applied for XXXX  XXXX due to the large balance accruing from Loancare giving us the run around. We were told that " due to the fact that we owed over the XXXX cap, we would have to ask our lender for a 'Partial Workout Agreement ' and in the interim the application would show as, 'Denied Pending the Workout Agreement ''. 
We were in constant communication with Loancare since XX/XX/XXXX to get them to sign the partial workout agreement in order to receive the XXXX HAF XXXX. Loancare has consistently told us that " they have never heard of the Workout agreement '' which we have submitted to them at least 15 times. Because Loancare refused to read or sign the workout agreement or open our portal to allow us to make payments, we were forced to apply for the regular modification in order to save our home. 

Many months later, we were denied the modification based on new higher interest rates and Loancare making another 'mistake ' by mis-reporting our income as XXXX per month vs XXXX. We then were put into a pre-foreclosure status and told to come up with the entire balance before the sale date or lose our home. We contacted the VA, HUD and VA Mortgage representative who explained that there was a Foreclosure Moratorium and that we could reapply for XXXX  XXXX, if we could come up with the funds needed to cover the excess after the XXXX XXXX. We have been in constant communication with Loancare to let them know that we are in underwriting for XXXX  XXXX and they need the workout agreement signed in order to grant us the assistance. We have asked them to open our payment portal again so we can pay the amount in excess down, they have refused. 

Yesterday, we received a notification from XXXX  XXXX that if we do not turn in the Workout Agreement from the lender ( by today XX/XX/XXXX ), that again our XXXX application would be denied. We contacted Loancare with urgency yesterday ( XX/XX/XXXX ), and we were told that the Supervisor of Loancare 's XXXX Department, has " been communicating with XXXX XXXX from XXXX XXXX and they are working together for a coordinated reinstatement ''. However, they would not sign the workout agreement because " it is not coming directly from from XXXX '' .. however XXXX  XXXX says that " we ( the borrowers ), have to get this workout agreement signed by Loss Mitigation before they can communicate directly through the I portal ''. We were told by the loss mitigation supervisor 'XXXX  XXXX, that they were " not going to sign the agreement coming directly from us '', and that " It Looks like you are caught between a rock and a hard place and we should sell our home or face foreclosure ''. The workout agreement is a simple paragraph that simply states that " Borrower '' will pay the difference after the XXXX XXXX. The Workout document requires no financial commitment from the lender, but instead of them agreeing to accept our payment and the XXXX  XXXX, we were told told to pay full amount due or else. 

We have been explaining since XX/XX/XXXX that the Partial Workout agreement from XXXX XXXX is addressed to the Borrower and Loss mitigation and that we need to have the loss mitigation manager sign the Workout Agreement and they are telling us that we are " not correct, and that everything must go through the portal ''. Due to the lack of cooperation from Loancare on the workout agreement, we have wired {$86000.00} to bring us under the cap. We were told by Loancare that they " will send the money back to us and not accept it unless it is the total amount ''. We have been in a vicious cycle of back and forth with Loancare and we believe that this is a coordinated effort to take our home and the equity we have built in it. We have asked numerous time for them to open our payment portal and allow us to pay. We have been denied each time. 

We have also been in constant communication with HUD the VA Mortgage Servicer and XXXX  XXXX who have all escalated the conversation, but still are not receiving cooperation from Loancare. We have suffered through the pandemic and as Veteran Homeowners we should be allowed to receive the assistance that is available to us. 

We wired the amount of the latest statement ( less the XXXX XXXX from Georgia XXXX ), and If there is anything additional we have to pay for late fees over the cap, we have explained that we will wire those on Monday morning. We are hopeful that now that we have wired the funds to get it below the cap, XXXX  can start the I portal record so that Loancare can receive the funds that way. Or at the very least Loancare will open the portal so we can continue to make payments up until the Foreclosure Moratorium is lifted. Loancare is demanding full amount without regard of the XXXX XXXX XXXX which is unfair, especially since we have been conditionally approved. 

XXXX XXXX

Company response to consumer: Closed with explanation