Consumer complaint received 2024-04-05 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: MI

Complaint narrative:
Dear Sir/Madam, I am reaching out to lodge a formal complaint concerning issues with my mortgage servicer, LoanCare, which include an overcharge in mortgage arrears, substantial legal fees incurred without resolution, and serious communication mishaps. 

The root of the dispute lies in a discrepancy in the arrears reported by LoanCare for the period of XXXX XXXX XXXX XXXX Our understanding, based on direct communications and submitted loss mitigation documents in XX/XX/2022, was that we were two months behind in our mortgage payments. Contrary to this, LoanCare 's documentation reflected a three-month arrearage. This discrepancy led to additional legal fees of {$6200.00}, charged by our attorney in an unsuccessful attempt to resolve the matter. We also incurred fees from LoanCare due to communications with our attorney during the bankruptcy proceedings. 

Complicating this issue was an unexpected change in our mailing address to our attorney 's office address, without our consent or request. This change resulted in all correspondence from LoanCare going unanswered following the termination of our relationship with the attorney. This communication breakdown meant we were unaware of and unable to respond to LoanCares communications in real-time, exacerbating the existing dispute over arrears. We also experienced harassment from LoanCare representatives, XXXX XXXX XXXX  while attempting to communicate with them about our loan modification and arrears dispute. 

Furthermore, it was not our intention to include our home in the XXXX XXXX XXXX proceedings. However, the incorrect arrears claimed by LoanCare, combined with the protracted period ( over a year ) it took to address our loan modification application submitted in XX/XX/2022, left us with no choice but to include the house in the bankruptcy to ensure its protection. 

To summarize, we are faced with the following issues : 1. Incorrect arrears reporting by LoanCare, unsupported by our payment records and communications. 
2. Unjust additional legal fees incurred due to the disputed arrears, without any resolution being achieved.

3. A significant breakdown in communication due to the unauthorized change of our mailing address to that of our former attorneys office, hindering our ability to manage our mortgage account effectively.

4. Being forced to include our home in the XXXX XXXX XXXX proceedings as a direct result of LoanCares actions and delays in loan modification. 
5. We will need to take next steps in raising an objection with the XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX, where we are currently Pro Se after having to dismiss our attorney because of this issue. Weve also filed a complaint against our attorney with the XXXX XXXX XXXX XXXX, which has gone unresolved.

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