Consumer complaint received 2025-03-26 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: LoanCare, LLC
State: HI

Complaint narrative:
Since around XX/XX/XXXX, I became delinquent on my mortgage due to medical discharge in the XXXX XXXX, as a combat veteran, from serious injuries which cut my income to less than half of what I was making as a XXXX. I exhausted all of my remaining savings and could no longer afford to pay at the current price and catch up on past due payments. 
In XXXX I put in for a forbearance while trying to work on alternatives to prevent foreclosure. It was determined that there were no options for refinancing my mortgage due to high interest rates which would make my mortgage even higher compared to my current 3.72 % rate. There was however a alternative solution, and in fact, the best solution to resolve my current financial situation known as the Veteran Affairs Servicing Purchase ( VASP ) program that allows the VA to take over the veteran 's mortgage by purchasing it from the current servicer, and refinancing to a 2.5 % rate at a XXXX or XXXX term. Upon qualifying for the VASP, and while in forbearance, Loancare continued letting my forbearance applications expire, which they did over 3 times constantly asking me for documents that I provided them multiple times. Due to no fault of my own, and Loancare constantly taking very long to process my VASP application, they literally let my forbearance expire over 3 times, asking me for documents that were consistently provided, such as LES paystubs, banking statements, W-2s, deed title documents, trust fund documents ( explained each time there wasn't any trust fund under my property and went through an attorney and even the title company but they still continued asking for such documents ). I provided them with all deed documents, and documents that should have and finally satisfied trust fund documents that they were asking me for. This was 3 times during the forbearance application. So basically the first time, they canceled my forbearance status, and I immediately applied again and provided them with such documents, and they let it expire the second time. The third time, my forbearance was headed towards expiring again, even after they received a new forbearance application as they told me I had to resubmit each time with all of the same documents and new updated bank statments. On there website for forbearance checklist, it shows that I only have to submit 1 or the other which was banking statements or check stubs. I ask them why or they asking me for all of this including other documents, when the guidlines on their website claim they only need 1 or the other. When I asked a loancare representative about this, she claimed that it's required since its a VA loan. So I gave them the benefit of doubt and still went above and beyond sending them all documents of both me and my wife banking statements once again for the third time, including the application packet, W-2s, etc. They even told me that my W-2 document was missing the second application that I put it, which was not the case, because not only did I email it to them, but it was also faxed. It was pointed out and one of the supervisor verified and saw that it was indeed emailed when they verified it. I was told that maybe the underwriter or someone over looked it and didn't notice it. So that along was a setback, which was no fault of my own. As months went by, and I continued calling to check on the status, they constantly tell me that it is still under review by their underwriter and to give it a few more days, weeks, and months each time I would call to check on the status. 
Finally on XX/XX/XXXX, I received a letter that I was preapproved for VASP. I verbally mentioned that I accept the VASP, and a week later I also emailed and faxed them the document back that I accept the VASP with terms of 2.5 % with an estimated monthly payment of {$4100.00}. It stated that I should receive a final modification agreement within 15 days. A whole month goes by and I still don't receive and modification documents. Loancare than claim that they sent documents over to the VA and that they are waiting for the VA to return the documents.

It got to the point where I spoke with a VA technician about the ongoing issues that I was consistently having with Loancare because I feel they wasn't trying to help me, and not helping me get my needs met with resolving my financial issue and finalizing everything to get my VASP processed. Upon speaking with a VA tech on XX/XX/XXXX, not only did she tell me that Loancare never received any documents from them, she informed me that my servicer Loancare was not even supposed to keep asking me for new documentation for VASP ( which I provided 3 times along with a new forbearance application ) and that the process of them adding the waterfall to my application was supposed to have taken effect and applied since XXXX because that was the official date that the waterfall took effect where no further documentation was suppose to have been required. I was advised that I was suppose to have only been given a verbal interview. When I spoke to my assigned VA tech, she told me that she will reach out personally to Loancare on my behalf about this ongoing situation. The next day she gave me a follow-up response via email that she spoke with Loancare and that I was approved for VASP and that they need me to do a verbal interview to accept the terms, which I called the same day to accept. After that I informed my VA tech that I spoke with them accepted the terms. 
However it is now XX/XX/XXXX, and I still haven't received any final modification documents which is supposed be sent to me overnight once completely processed and apparently still not completely processed as of yet. 
Loancare has constantly held up this process since XXXX of last year and it has being ongoing with them since. I feel Loancare has been unprofessional, negligent, and possibly un-knowledgable or untrained in this entire VASP process and it makes me feel that they don't have my best interest with finalizing my approval when me and the VA has been waiting for them to send over the documents to get everything processed. I have served my country proudly putting my life on the line, and getting injured serving, and I feel like I'm being unfairly treated by Loancare with not helping me complete this VASP process to save me and my family property and avoid foreclosure.

Company response to consumer: Closed with explanation