Consumer complaint received 2026-04-23 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: PLANET HOME LENDING, LLC
State: TX

Complaint narrative:
XXXX ( Bottom Line Up Front ) : I am a XXXXXXXX XXXX XXXX XXXX XXXX XXXX parent facing an unjustified foreclosure initiated by Planet Home Lending. Over the past several years, Planet Home Lending has engaged in predatory servicing practices, escrow mismanagement, and deceptive customer service tactics designed to artificially inflate my loan balance from {$270000.00} back to {$310000.00}. These actions appear to be a deliberate attempt to force me out of my 2.5 % VA loan into a market-rate loan of up to 8 % under the threat of losing my home. Background and XXXX of XXXX XXXX XXXX. Initial Forbearance and Unjustified XXXX XXXX At the beginning of my loan term, my interest rate was 2.5 %, and my monthly payments were below {$1500.00}. About a year into the loan, I faced a financial hardship and requested a standard forbearance. Despite making partial payments during this period, I was charged a substantial amount in ambiguous fees at the end of the forbearance, resulting in my monthly payment increasing to {$1800.00}. XXXX. Escrow Mismanagement and Forced Default A year later, a Planet Home Lending representative casually informed me that I was paying for XXXX separate home insurance plans through my escrow. When I attempted to correct this by canceling XXXX through my broker, both were inadvertently canceled. I was not notified of this issue until months later, when I discovered Planet Home Lending had stopped applying my mortgage payments to my loan. Instead of working with me, your agency held my payments in escrow, refused to accept partial payments, and unilaterally increased my monthly payment to {$2600.00}. To save my home, I was forced to pay a {$7000.00} lump sum last year just so Planet Home Lending would begin accepting the inflated {$2600.00} monthly payments. This mirrors public complaints regarding Planet Home Lending 's predatory escrow management, specifically the withholding of funds to delay disbursements and force borrowers into delinquency. XXXX. Government XXXX and Punitive Forbearance When faced with another hardship, I requested to skip XXXX months ' payments to catch up. Instead of a reasonable workout, my payment was skyrocketed to {$4000.00} a month. Shortly after, as a federal employee, I was impacted by the government shutdown. When I requested relief, the only option offered was a XXXX forbearance that required the balance to be paid in full immediately upon completion. With no other choice, I agreed. XXXX. Underwriting Delays and XXXX Customer Service At the end of this recent forbearance, Planet Home Lending again refused to accept my payments, claiming my loan status " did not permit payments until a debt is settled. '' I was told I owed {$7000.00}, which inexplicably included over {$1800.00} in " assessment fees. '' I requested that these arrears be rolled into the back of the loan so I could resume regular payments. In XX/XX/XXXX, I was told this request was sent to underwriting. It is now XX/XX/XXXX, and the modification is still pending, yet my property has been placed on the foreclosure list. Furthermore, the customer service I have received is wildly inconsistent and deceptivea known and documented issue with your company. Every time I call, I receive conflicting information. XXXX representative will tell me I can start making payments, while the next refuses them. XXXX representative assures me my file is with underwriting, while another claims it was " coded for underwriting but never sent. '' Summary of Damages and Predatory Equity Stripping In the span of 7 years, I paid my mortgage principal down from {$310000.00} to {$270000.00}. Today, due to Planet Home Lendings refusal to accept payments, manufactured escrow shortages, and excessive assessment fees, you are claiming I owe {$310000.00} again. The only " solution '' Planet Home Lending has offered is to rewrite my loan at current market rates ( nearly 8 % ). It is abundantly clear that the aggressive fees, payment refusals, and manufactured defaults are a predatory tactic to strip me of my 2.5 % interest rate and capitalize on higher market rates, at the direct expense of a XXXXXXXX XXXX XXXX XXXX parent.

Company response to consumer: Closed with explanation