Consumer complaint received 2025-07-28 00:00:00
Product: Mortgage — VA 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: SC

Complaint narrative:
b'Summary of Complaint Regarding VA Loan Servicing by LoanCare\n\nWe are filing a formal complaint regarding the mishandling of our VA mortgage, which was transferred from XXXX XXXX  to LoanCare during the middle of a forbearance modification agreement. Despite LoanCare acquiring the loan under the agreed modification terms, they have consistently failed to honor those terms. For over two years, LoanCare has refused to accept any form of payment from us, communicate with us or our legal counsel, or provide a resolutiondespite numerous documented efforts on our part. They have repeatedly claimed there is an internal error on our account and requested additional time to review it, all while pursuing foreclosure proceedings through legal counsel. Additionally, they are reporting derogatory information to the credit bureaus, in direct violation of the agreed-upon hold on credit reporting during the resolution process. Public records, including thousands of one-star reviews and complaints with the XXXX  and platforms like XXXX, reveal a disturbing pattern of similar conduct by LoanCare across various loan types. We believe our VA loan rights have been severely violated, and we are now being forced to sell our home to mitigate further credit damage. This situation has caused significant financial and emotional distress, and we believe LoanCare should be held accountable, including providing restitution and credit repair for both ourselves and others affected by their misconduct. I have pasted below a timeline, of events best we can recall. We have a multitude of emails and letters that are just to much to upload, as well as a settlement offer we have sent to Loancare and their legal counsel as recently as last week with no response. \n\nLoan Issue Timeline:\XXXX XXXX XXXX granted a forbearance Due to XXXX  having a XXXX  issue that prevented him from working for several weeks. \n\nEarly XXXX XXXX XXXX XXXX  contacted XXXX  to resume payments.\n\nAdvised not to pay yet and to wait for paperwork.\n\nXXXX XXXX XXXXReceived paperwork from XXXX   it was a loan modification, not a forbearance as initially stated.\nThis discrepancy triggered ongoing disputes with XXXX.\nRegular Payment was sent to XXXX  while the dispute was being worked through. \XXXX XXXX XXXXnSigned modification paperwork with a notary and overnighted it to XXXX.\nTracking #: XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXnNotified that XXXX  sold the loan to XXXX  during the modification process.\XXXX XXXX XXXXnReceived first statement from XXXX, still showing old loan terms.\nPhone call placed to XXXX  who stated the loan was still in process and no payment could be accepted.XXXX XXXX XXXX received the modification paperwork from DMI but denied receiving it when spoken to on the phone.\n\XXXX  Tracking #: XXXX  provided by XXXX  showing LoanCare received the paperwork and signed for it. \XXXX XXXXnReceived a second XXXX  statement still incorrect\n\nCalled again to XXXX  and was still unable to make payments due to ongoing modification issues.\n\XXXX  and XXXX  blamed each other for missing or incomplete paperwork.XXXX XXXX\nCredit reports show 3 late payments.\n\nContacted XXXX XXXX our XXXX  leander, who escalated our issue to XXXX XXXX XXXX for assistance.\n\nMade a mortgage payment to XXXX  in XXXX  (bank records available), but unclear if credited.\n\nScheduled attorney meetings for possible legal action.XXXX XXXX XXXX XXXX  emailed XXXX XXXX stating XXXX  notified all three credit bureaus to mark his account as current for the time serviced by XXXX.\n\nStatus would show as current/servicing transferred.\n\XXXX  would continue coordinating with Loancare for resolution.XXXX XXXX XXXX XXXX XXXX  sent an urgent email to Loan Care and XXXX expressing frustration.\n\nWarned they would pursue legal action if no written resolution and proof of credit correction were received by Thursday XXXX.\n\nCredit score dropped XXXX  points due to false late payment reports, affecting business operations of business owned at the time. \n\n\nXXXX XXXX XXXX\XXXX  sent an inquiry to XXXX  for verification of payments, interest, and escrow details regarding the loan modification.\n\XXXX  already had sent them this info in the transfer of the loan; reason for re-verification unclear.\n\XXXX  claims they are waiting on XXXX. XXXX  states they are free and clear and do not hold the loan any longer as confirmed by the tracking number several months prior.XXXX XXXXr with XXXX  actively escalated the issue once again to help assist us.XXXX XXXX XXXXescalations emailed XXXX XXXX confirming:\nLetter mailed.\nCredit bureaus notified to correct 150-day late payment reported by Loancare.\nDuring this time XXXX  requested more time to wait for a VA signature of approval which was later confirmed by the VA to not be the case. XXXX XXXX XXXXXXXX XXXX XXXX acknowledged receipt of CFPB complaint #XXXX  related to the loan. ( Still no response to this complaint as of XXXXnApologized for inconvenience and initiated internal investigation.\nLoanCare Loss Mitigation officer assigned for follow-up.\n\n\XXXX XXXX XXXX\nAttorney XXXX XXXX emailed XXXX XXXX (XXXX XXXX) seeking help to resolve the loan issues before costly litigation.\n\XXXX XXXX XXXXXXXX XXXX  (XXXX XXXX XXXX) replied:\nLoan modified in XXXX  but no payments made since.\XXXX arrearage.\n\n\nOffered phone discussion.\nXXXX XXXX XXXXXXXX XXXX forwarded email from VA Loan Technician XXXX XXXXnLoan servicer referred loan to foreclosure, no loss mitigation review underway.\nAdvised completing VA Home Retention application.\XXXX  asked XXXX XXXX about updates and suggested hard deadlines to avoid lawsuits.\XXXX  replied no updates yet, will contact attorney.\XXXX  emailed XXXX  Page requesting modification status update to avoid litigation\nMartin Page replied foreclosure referred but currently on hold.\nBorrower can pursue another modification by calling XXXX.\XXXX XXXX XXXXXXXX XXXX shared last loan-related correspondence with XXXX XXXX XXXX noted the servicer appears to have acknowledged mishandling.XXXX XXXX XXXX reported servicer representatives visiting home again; demanded all communication go through XXXX  office; threatened lawsuits if unresolved by XXXX XXXX frustrated over inability to sell house.\XXXX requested XXXX XXXX investigate why the servicer sends notices and makes home visits.\n XXXX XXXX noted in-person contacts are federal servicing requirements; asked if modification talks occurred.\nXXXX XXXX XXXX emailed XXXX  expressing severe frustration with Loancare due to:\nFrequent confusing communication and repeated deadline extensions.\nServicer agents repeatedly visited home leaving notices.\n\nDifficulty refinancing, higher rates, loan denials.\n\nCredit damage from false late payment reports from LoanCare in early XXXX  harming finances and loan applications.\n\nEmotional, mental, and financial distress.\nDesire to initiate lawsuit for damages due to servicer mishandling.\n\nAsked XXXX  office to handle or provide trusted referral.\XXXX  forwarded XXXX  email to XXXX XXXX copying XXXX XXXX XXXX urging resolution to avoid slander of credit lawsuit.\nXXXX XXXX XXXX XXXX XXXX  if lenders attorney responded and suggested a meeting to discuss the lawsuit if no reply soon.XXXX  replied: Not yet.\XXXX  XXXX  Statement Timeline XXXX Received first mortgage statement from XXXX.\n\nReflected old XXXX  loan terms (pre-modification).\n\nIncorrect payment amount: XXXX due.\n\nInterest rate: 2.75%.\n\nDespite being current with XXXX XXXX  listed this as past due.\n\n\nXXXX XXXX called XXXX  to offer a payment of the normal amount due on XXXX refused payment because the loan was "under review" and they could not accept payments during this period.\XXXX XXXX Continued receiving incorrect monthly statements.\n\n\nStatements still showed past due balances and XXXX  refused to defer the past due amount as agreed in modification and would only take full past due amount or nothing.\n\n\nXXXX  Present XXXXnContinued receiving incorrect monthly statements.\nCredit reporting has been conducted in XXXX and again in XXXX XXXX XXXX  stating past due payments and amounts despite having agreement in place to not credit report until there is a resolution.\nPending foreclose sent to their attorney but he has not filed it due to the issues he does not feel there is a case but his clients refuse to respond to offers for settlement.\nWe are pending a lawsuit if issue is not resolved within the next 90 days. \nHome is currently on the market to try to prevent any further damage to credit \nOffers have been sent to Loancares attorneys but no response has been given. \XXXXn Most recent statement received.\n\n\nStill shows incorrect information for payment amount.\n\n\nPast due amount listed as XXXX.\n\n\n\nAdditional Note: Secondary Lien\nXXXX XXXX XXXX  holds a secondary lien from the VA-guaranteed partial claim.\n\n\nAmount: XXXXn\n\n0% interest\n\n\nMaturity Date: XXXXn\n\nPayable when XXXX  loan is paid off or property is sold.\n\n\n\n\nFinal Summary of Agreeable Solutions to avoid a court appearance:\nDefer Past Due Amount:\n Move the past due balance to the end of the loan term, as originally agreed with XXXX  prior to the loan transfer.\n\n\nCorrected Payment Statement:\n Issue an updated mortgage statement accurately reflecting the correct monthly payment and interest rate based on the agreed-upon terms.\n\n\nMonetary Settlement for Damages:\n\n\nCompensation for emotional and mental distress, in an amount consistent with current legal standards.\n\n\nCompensation for harm to credit reputation ("credit slander"), in accordance with applicable laws.\n\n\nCompensation for the financial loss caused by the inability to buy, sell, or access equity in the home during the dispute period.\n\n\nCredit Report Correction:\n Correct the credit history by reporting that the late payments were made in error and restore the credit profile to its appropriate standing.\n\n\nLoan Transfer:\n Sell and transfer the servicing of the loan to a new mortgage servicer with no affiliation to XXXX XXXX or XXXX.\nWe have also submitted an offer to loancare via their attorney with no response. I will attach that offer as well.'

Company response to consumer: Closed with explanation