Consumer complaint received 2025-11-18 00:00:00
Product: Mortgage — FHA 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: CA

Complaint narrative:
CFPB Complaint Update Forbearance Extension Accepted with Reservation of Rights ; Misclassification and Misleading Communications Persist I am submitting this update to clarify that on XX/XX/XXXX ( see attached email ), I formally accepted LoanCares offer to extend my FHA forbearance from XX/XX/XXXX, through XX/XX/XXXX, with an explicit reservation of rights. My acceptance email clearly stated that I do not waive any protection for the months of XX/XX/XXXX through XX/XX/XXXX, which were already covered under my original forbearance approval. 

This means my full protected period under active forbearance spans XX/XX/XXXX, through XX/XX/XXXX. I have not exited forbearance, and I remain in full compliance with FHA guidelines. Any attempt to classify any portion of this period as delinquent is inaccurate and misleading. 

Importantly, LoanCares own XX/XX/XXXX, letter, submitted through the CFPB portal, confirms that I was current at the time I entered forbearance, with no past due balance and no foreclosure scheduled. This directly contradicts their subsequent XX/XX/XXXX, letter, which misclassifies the months of XXXX, XXXX, and XX/XX/XXXX as past due, with a total delinquency of {$6500.00}. That figure reflects XXXX monthly payments of {$2100.00}, totaling {$6500.00}, minus a {$60.00} late fee that I paid with my XXXX payment made within XXXX. This is not a delinquencyit is a deferred balance under my active forbearance, and it should not be represented as past due while I remain protected. 

LoanCare continues to use boilerplate delinquency languagesuch as your loan is delinquent and you must pay to avoid foreclosureeven though I am performing under an active forbearance plan. This language is inapplicable to my situation. I was fully current when I entered forbearance, and under Regulation XX/XX/XXXXXXXX XXXX ( a ) ( XXXX ), a borrower performing under a loss mitigation plan is not considered delinquent. 

Additionally, LoanCare representatives continue to ask how I plan to repay the so-called delinquent amount, despite knowing that I submitted a timely hardship reaffirmation and accepted an extension that preserves full coverage of my forbearance period. This includes both the original protected months, XXXX, XXXX, and XX/XX/XXXX and the extension through XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. These repeated questions falsely imply that I exited forbearance or failed to perform, when in fact I remain in full compliance with the terms of my FHA forbearance plan. My status has not changed : I am in an active forbearance, and no payments are currently due. 

To be clear : I understand that I am responsible for repaying missed payments, but under FHA guidelines, those payments are pausednot currently duewhile I remain in an active forbearance. My loan is FHA-endorsed, and I am entitled to the full range of protections and programs available under HUD policy . LoanCares communications ignore these protections and instead rely on misleading language that misrepresents my account status. 

Thank you for your continued attention to this matter.

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