Consumer complaint received 2026-04-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: LoanCare, LLC
State: TX

Complaint narrative:
Since XX/XX/XXXX, I have made consistent, good faith efforts to work with LoanCare , LLC ( LoanCare ) to obtain mortgage assistance and retain my home. Despite my full cooperation, LoanCare repeatedly failed to properly process my mortgage assistance application, misapplied internal system codes, provided conflicting and inaccurate information, and advanced foreclosure activity while my loss mitigation efforts were ongoing. These servicing failures resulted in a foreclosure sale date being set without my knowledge, premature and inaccurate foreclosure reporting to the credit bureaus, and ultimately forced meunder significant duressto attempt to sell my home below market value to protect my equity. Summary Timeline : XX/XX/XXXX I contacted LoanCare seeking mortgage assistance to avoid foreclosure and requested clear instructions to complete the Mortgage Assistance Application ( MAA ). XX/XX/XXXX I was approved for a Flex Modification, completed the required three month payment period, and timely signed and returned the modification documents provided by LoanCare. XX/XX/XXXX Weeks XXXX After hearing nothing further, I contacted LoanCare and was informed that my documents were deemed null and void due to a notary date mismatchan error outside my control. I was told the only option to proceed was to resubmit the Mortgage Assistance Application, which was completed over the phone. I was instructed to wait approximately one week, so for an update. ( LoanCare Rep. XXXX ) XX/XX/XXXX Week XXXX After receiving no update or correspondence, I called LoanCare again and was told there had been a script failure, meaning no activity was recorded on my application. Another application was taken over the phone, and I was again instructed to wait and call back for my status. ( LoanCare Rep. XXXX ) XX/XX/XXXX XXXX XXXX I followed up once more and was informed there was still no activity on my account. A representative identified that the required staging code ( XXXX ) had not been entered, preventing the application from moving forward. I was told the issue had been corrected and to check back in XXXX week. ( LoanCare Rep. XXXX ) XX/XX/XXXX XXXX XXXX I began receiving calls and text messages from third party investors regarding a foreclosure sale date of XX/XX/XXXX. This was the first notice I received of any foreclosure sale. Neither LoanCare nor its attorney provided prior written or verbal notice. When I contacted LoanCare, I was referred to the lenders attorney, XXXX, XXXXXXXX XXXX XXXXXXXX, XXXX, where I was told that maybe its not time to send a notice of intent to sell, despite my legal entitlement to such notice. During this same period, I was told I needed to complete another assistance application. Although I was initially advised I could do so by phone due to the remaining timeframe, this guidance was reversed. I was emailed a password protected application that I could not access until LoanCare corrected the issue two days later. I completed the application immediately and submitted it via email and XXXX day mail, as instructed, to XXXX, including all requested documentation. ( LoanCare Rep. XXXX ) XX/XX/XXXX Week XXXX ( Critical Misrouting Error ) Fearful of losing my home and my equity due to the active foreclosure sale date, I made the decision under duress to explore selling my home while continuing to pursue mortgage assistance. When I called for a status update, I was told my application had been received but was being processed as a Short Sale, and that I had allegedly declined a Flex Modification. This information was false. I immediately advised the representative, that my intent was and always had been to keep my home. XXXX stated my account was routed to Short Sale because LoanCare was not clear which option I selected on the application. Despite correcting this error in real time, I was met with rudeness and indifference, and told the only corrective action available was to submit a written letter restating my intent to retain my property and seek mortgage assistance. I sent this letter the same day to XXXX. ( LoanCare Rep. XXXX ) XX/XX/XXXX Continued Harm I later contacted LoanCare to confirm that my loss mitigation application was under review and that the foreclosure sale had been suspended. Another representative confirmed my account still reflected Short Sale status and advised I was now considered outside the 37 day review window for assistancedespite the fact that LoanCares repeated miscommunication, system failures, and processing errors consumed most of that timeframe. And, that I just received a formal sale letter approximately one week later, and only after I called to LoanCares attorney inquiring about a notification. I was told there was nothing she could do. I requested to speak with the Escalation/Resolution department, and someone was supposed to give me a callback within 24 hours, which I never received. ( LoanCare Rep. XXXX ) XX/XX/XXXX : Critical : Additionally, LoanCare reported foreclosure related information to the credit bureaus even though no foreclosure sale has occurred, causing substantial damage to my credit.

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