Consumer complaint received 2024-12-11 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: CA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Ca XXXX XXXX XXXX XX/XX/XXXX RE : Loan Care, LLC Subject : Urgent Request for Assistance - Loan Number XXXX This letter is to express our urgent need for assistance regarding our mortgage loan, account number XXXX, for the property located at XXXX XXXX XXXX, XXXX XXXX , California XXXX XXXX My name is XXXX XXXX XXXX and I am writing to you today to express my extreme frustration and disappointment with the handling of our mortgage assistance request. 

In XX/XX/XXXX, we experienced a temporary financial hardship due to COVID-related issues, and injury which caused us to fall behind on our mortgage payments. We proactively contacted Loan Care to explore available options and were advised to apply for a partial claim. 

We completed the necessary paperwork and returned it promptly. However, we were subsequently informed that the paperwork was either missing a signature or had been filled out incorrectly. We requested a new application. 

The second application we received was not for a partial claim, but rather for a loan modification that included a significant interest rate increase. This was unacceptable to us, as an increased monthly payment would exacerbate our financial difficulties. We contacted Loan Care again and were assured that a new partial claim application would be sent without any changes to our existing loan terms. 

Despite this assurance, we did not receive the corrected paperwork. Instead, we were served with legal documents indicating that foreclosure proceedings had been initiated against our property. When we contacted Loan Care to inquire about the status of our partial claim application, we were informed that the foreclosure had been put on hold while a new " workout option '' was being sent to us. 

On XX/XX/XXXX, we received this new workout option, which again included a loan modification agreement with an exorbitant interest rate increase from 3.125 % to 7.25 %. This would increase our monthly mortgage payment by over {$1000.00}, an amount that is simply not affordable for us. 

We have once again contacted Loan Care and requested the original partial claim that was offered to us. This request has been denied, and we were told that our only remaining option is to repay the full partial claim amount of nearly {$20000.00}, which we are unable to do. 
The reason they gave for the new decision as that too much time had passed without a payment from us. However during this entire timeframe they would not allow us to make any payment unless it was for the full amount due. 

We are requesting your immediate intervention to resolve this situation. We are willing to proceed with the original partial claim offer and resume making our regular monthly payments on time. Our financial situation has improved, and we are confident in our ability to meet our obligations moving forward. 

We have made every effort to work with Loan Care in good faith, but we have been met with repeated errors, miscommunications, and broken promises. We urge you to reconsider our request for a partial claim and help us avoid the devastating consequences of foreclosure. 

Thank you for your time and attention to this matter. We look forward to your prompt response and a positive resolution. 

Sincerely, XXXX XXXX XXXX

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