Consumer complaint received 2025-01-13 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: LoanCare, LLC
State: DE

Complaint narrative:
In mid XXXX, I called loancare because my loan was 2 months behind. FHAs website stated that they are offering XXXX XXXX protections including pre-waterfall steps to help borrowers who are struggling financially regardless of the reason for the struggle. When I called Loancare, the customer service rep told me that the XXXX XXXX protections expired already. I read the rep the information that was in HUDs website and FHA website. She again told me that those protections expired already. The FHA and XXXX documents show that they were extending the program for 18 months pst XXXX XXXX, which would have sunsetted on XXXX XXXX. Calling in XXXX I was well within my right to take advantage of the program ( I lost income in XXXX, used up savings and maxed out credit cards paying for mortgage and other expenses ). The customer service rep did not ask me why the payment was late, why we were struggling financially and did not talk to me about any loss mitigation options. I explained to the customer service rep that I was out of work between XXXX and XXXX, exhausted my unemployment and used up my savings. She did not care and asked if I was working again, which I replied yes I just started a contract with XXXX ( XX/XX/XXXX ). The customer service rep told me the only I option I have to keep my home is to pay the XXXX months late payments on a payment plan. I setup the payment to be paid on XX/XX/XXXX for the XXXX mortgage payment and again on XX/XX/XXXX for the XXXX payment. I had to pay the regular mortgage on XXXX XXXX and the payment XX/XX/XXXX was returned because we didnt have enough funds in the bank to cover it. This shows to loancare that even though we were trying to pay, we were still struggling. They did not call or reach out to us as required by law. They did send a loss mitigation application which we filled out and mailed back at the end of XXXX when we called to follow up in XXXX, we were told by customer service rep that they never received it ( sent regular mail ). The customer service rep then told us to fill it out again, and send the documents to a loancare email. We completed this process on XXXX. On XXXX XXXX th we were sent a notice from Loancare that stated they received our application for loss mitigation assistance. We called to speak to a supervisor about what each loss mitigation options we qualify for. They would not talk to us about forbearance, partial claim, standalone claim, nothing. They said we have to wait for the underwriters to process it and make a decision. Loancare then sent a letter in XXXX XXXX assigning us to a mortgage resolution advocate and stated he would call us within 5 business days. He did not call us within 5 days. We called on XXXX XXXX to speak with the mortgage resolution advocate and Loancare stated they just have to put someones name on it we let the borrower actually talk to them. Loancare by law was supposed to send a notice whether our application was completed or incomplete. They did not send this communication. On XXXX I confirmed verbally with a Loancare rep that they have all of the documents they need to process the assistance. On XXXX we received a letter of intent to foreclose if we do not currently the default by XX/XX/XXXX. Loancare caused significant harm to me as the borrower by not offering loss mitigation options when I verbally requested it in XXXX. Had I been on a forbearance for 3 months, I would have been able to get caught up and start payments again in XXXX. In XXXX we received a notice that they had evaluated loss mitigation options and only chose to give us a loan modification. We were denied forbearance, partial claim, standalone claim. The document stated we would receive paperwork within 10 business days. On XX/XX/XXXX. On XX/XX/XXXX I called loancare again. I asked loancare when I should be receiving the documents and I was told any day now. On the original loan modification price, it stated I had until XX/XX/XXXX to appeal the decision. How can I appeal a decision that I dont have paperwork on? On XX/XX/XXXX I called again to find out what to now since we have no perform and I had two days to appeal. The supervisor stated we havent been approved for anything and that was just a pre-qualified program. So we are now 45 days out and according to Loancare they have not processed our original loss mitigation from XXXX. There are laws around timely processing of application which isnt being adhered to at Loancare. The supervisor XXXX, yelled at me and bullied me not letting me talk when I told her that I am reading pre waterfall loss mitigation options from the website. Another supervisor named XXXX acknowledged that they made the mistake but then said, XXXX theres nothing we can do to change the past. They need to be held accountable for this. We have an fha loan, paid fha insurance and we are being forced to foreclose without going through any sort of loss mitigation. As first time home buyers this is scary as we have XXXX kids. This is the longest time in my career I have been unemployed and the fact that Loancare ignored regulations from FHA and HUD and the CFPB is causing distress to homeowners. I need immediate intervention as the information provided by LoanCare reps verbally contradicts the written notices LoanCare has sent.

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