Consumer complaint received 2026-04-27 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: LoanCare, LLC
State: OH

Complaint narrative:
I am submitting this complaint regarding my mortgage servicer, LoanCare, due to a payment misapplication and servicing error that led to the improper denial of loss mitigation assistance and has placed my loan into foreclosure status. On or about XX/XX/XXXX, I called into Loancare to attempt to resolve any past due balance on my mortgage. Months earlier I was unemployed, which resulted in falling bahind. However, at the time I called in, I had gained employment and was willing and able to resume normal monthly payments. The Loancare representative had me apply for a Trial Plan that, after successful completion, would allow the overdue balance to be put on the end of the loan and normal monthly payments to resume. While speaking to the LoanCare representative, we asked if we should make a payment for XX/XX/XXXX. The LoanCare representative assured us that we could make that XX/XX/XXXX payment while the trial Plan was pending. This payment was made in good faith and in accordance with the instructions provided by the representative. I was approved for the Trial Plan by letter on XX/XX/XXXX. The XX/XX/XXXX payment went through on or about XX/XX/XXXX. Per the trial plan, we would begin our first payment on XX/XX/XXXX. I logged into the LoanCare online portal prior to XX/XX/XXXX. The system showed, in green, " XX/XX/XXXX - Paid '' and then below it, " XX/XX/XXXX, and XX/XX/XXXX '' in red that was still due. Further, the LoanCare online portal would not allow me to make an additional payment for XXXX. I looked at my payment history and deduced that the XXXX payment had been applied to the XX/XX/XXXX, payment. Based on the information displayed in LoanCares system, I reasonably relied on this representation and did not make another XXXX payment. I successfully made the XXXX and XXXX payments. When XX/XX/XXXX came around, I still was unable to make payments, which did not make sense to me. I then contacted LoanCare to see what the issue was. I was informed that the trial plan had failed due to a missing XXXX payment. This failure was not due to a refusal or inability to pay. Rather, my ability to comply with the terms of the trial plan was directly impacted by how LoanCare applied the XXXX payment and how the system displayed the account status. The system indicated that XXXX was already satisfied and prevented me from making an additional payment. LoanCare can not fault us for not adhering to a contract that their own system did not allow us to comply with. Since this issue occurred, we have been in consistent communication with LoanCare, contacting them on a weekly basis in an effort to resolve the situation and move forward. Throughout this time, we have remained ready and willing to resume our normal monthly mortgage payments. During multiple phone calls with LoanCare representatives, I was informed that : - This type of issue involving payment misapplication and system display has occurred with other customers - The XXXX payment was applied incorrectly - This issue has impacted trial plans in other cases, and in those instances, the customers were granted new trial plans Despite these acknowledgments, my request for further loss mitigation assistance was denied. I was informed that my only options were to bring the loan current in full or pursue liquidation options, even though I have stable income and am able to afford my regular monthly mortgage payment going forward. Additionally, LoanCare has not allowed me to make an additional payments while they took almost 2 months to get this worked out, so I am even further behind on my mortgage than I should be. On my most recent call, a member of LoanCare management acknowledged the issue and created an internal escalation ( dynamics ticket ) to send to the lender, XXXX XXXX XX/XX/XXXX, for further review. I have not been given an update yet, despite being told they were obligated to contact me with an update. I have made every effort to comply with LoanCares requirements, including making payments, following instructions, and maintaining consistent communication. I am attempting to retain my home and resume normal payments, not avoid my obligations. My prior payment history prior to this short-term unemployment was timely. I also have XXXX XX/XX/XXXXchildren whose lives do not deserve to be uprooted due to a company 's mistake on their own system. I am requesting the following : 1. A full investigation into the application of my XX/XX/XXXX payment, including how it was allocated and how it impacted my account status, 2. A review of the online account status that showed XXXX as paid and prevented an additional payment from being made, 3. A review of all call recordings and internal servicing notes from XX/XX/XXXX through XX/XX/XXXX, including calls where representatives acknowledged a system issue, 4. A determination of whether a servicing error occurred that impacted my ability to comply with the trial plan terms, 5. Reconsideration of my eligibility for loss mitigation options, including a new trial payment plan, loan modification, or payment deferral, taking into account the servicing error and my current ability to pay, 6. Correction of any errors in my account related to payment application and trial plan evaluation I have acted in good faith throughout this process and relied on the information provided by LoanCares system and representatives. I am requesting a fair and thorough review so that I may pursue a resolution that allows me to keep my home.

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