Consumer complaint received 2025-11-14 00:00:00
Product: Mortgage — USDA 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: Village Capital & Investment LLC
State: NC

Complaint narrative:
From : XXXX XXXX XXXX XXXX XXXX XXXX. XXXX, NC XXXX Regarding : Servicer : Village Capital & Investment LLC Loan Number : XXXX Subject : FORMAL COMPLAINT : Wrongful Foreclosure ; Willful Violation of Protective Order ; Systemic Servicing Failures ; Violations of RESPA ( Regulation X ) ; Unfair or Deceptive Acts or Practices. 

I. SUMMARY OF COMPLAINT I am a XXXX XXXX XXXX XXXX and am writing to file a formal complaint against my mortgage servicer, Village Capital & Investment LLC, for a catastrophic series of servicing failures that resulted in the wrongful foreclosure of my home on XX/XX/XXXX, 2025.Village Capital was placed on irrefutable notice of my status as a XXXX XXXXXXXX survivor, my medical diagnosis of XXXX, and the existence of a legal protective order against the co-borrower. Instead of providing support, Village Capital repeatedly and willfully violated my request to remove the abuser from correspondence, an act that re-traumatized me and inflicted severe emotional distress.Furthermore, Village Capital failed to provide any viable loss mitigation. The XXXX modification offer was unviable, as it increased my monthly payment. 
XXXX The XXXX modification applicationmy final attempt to save my homewas denied based on a fatal and material error of fact : Village Capital 's own denial letter proves they evaluated my USDA loan against the eligibility criteria for a VA loan. 
XXXX This foreclosure was not only avoidable ; it was illegal. It was the direct result of the servicer 's negligence, its willful disregard for my safety, and its shocking non-compliance with the most basic federal servicing laws. 
XXXX I am urgently requesting your intervention to have this wrongful foreclosure sale set aside and to hold Village Capital accountable. 

XXXX. CORE VIOLATION XXXX : WILLFUL DISREGARD OF PROTECTIVE ORDER & DV STATUS Village Capital 's claim of being a responsible servicer is disproven by its reckless and repeated violation of my legally protected status, which I notified them of multiple times. 
XX/XX/XXXX Notification : On XX/XX/XXXX, I emailed Village Capital representative XXXX XXXX to provide my " Protective order.pdf '' [ Evidence : XXXX XXXX ]. 

Servicer 's Admission of Receipt : On XX/XX/XXXX, XXXX XXXX replied, " I just wanted to make you aware that I have received the document you sent & they have been uploaded '' [ Evidence : XXXX XXXX, XXXX XXXX ]. 
The servicer can not claim ignorance after this date. 
XX/XX/XXXX " Do Not Contact '' Request : On XX/XX/XXXX, I sent a detailed email " to Mortgage '' [ Evidence : XXXX XXXX ] pleading for help and explicitly stating : '' XXXX XXXX signed a quit claim deed. " " I have a full order of protection against her. " " I am still in therapy for XXXX ... '' '' I would find it very helpful to stop being asked about her... I do not have contact with her and she is not allowed to have contact with me. 
" Systemic and Willful Breach : Village Capital completely ignored my plea and the legal notice it had " uploaded '' to its system. After receiving my XX/XX/XXXX, email, Village Capital continued to address all critical and sensitive legal documents to both me and my abuser. 
This includes : XX/XX/XXXX : USDA Modification Offer XX/XX/XXXX : Plan Cancellation Letter XX/XX/XXXX : Mortgage Assistance Denial XX/XX/XXXX : Official CFPB Response This is not a clerical error. It is a systemic, ongoing pattern of harassment. Forcing a XXXX survivor with XXXX to repeatedly see her abuser 's name on threatening legal documents is an extreme and outrageous act that has caused me severe emotional distress. 

XXXX. CORE VIOLATION XXXX : ILLEGAL FORECLOSURE BASED ON A FATAL FACTUAL ERROR ( VA vs. USDA ) The foreclosure sale of my home is void because it was based on a factually and legally invalid denial of my loss mitigation application. 
The Invalid Denial : My home was sold at auction on XX/XX/XXXX. 
The servicer justified this sale using a " MORTGAGE ASSISTANCE DENIAL '' letter dated XX/XX/XXXX. 
The " XXXX XXXX '' Error : This denial letter is invalid on its face. On page XXXX, under " Mortgage Assistance Evaluation, '' the letter clearly states : '' You were evaluated for mortgage assistance based on the eligibility requirements of VA, the guarantor of your mortgage. '' The Truth : This is a fatal error. My loan is, and has always been, a USDA ( United States Department of Agriculture ) guaranteed loan. 
Village Capital knows this ; their own XXXX offer was a " USDA MODIFICATION WITH MORTGAGE RECOVERY ADVANCE ''. 
The Violation : Evaluating my USDA loan against VA criteria is not an evaluation at all. It is a material violation of the Real Estate Settlement Procedures Act ( RESPA ), which requires a servicer to properly evaluate a borrower for all loss mitigation options for which they are eligible. 
A servicer can not simply use the wrong federal program. This failure renders the denial void. 
Prohibited " XXXX XXXX '' : By moving to a foreclosure sale just XXXX days after issuing this facially invalid denial, Village Capital engaged in prohibited dual tracking, as they had failed to conduct a proper evaluation of my application as required by XXXX XXXX XXXX XXXX XXXX  XXXXXXXX. 

CORE VIOLATION XXXX : FAILURE TO PROVIDE VIABLE MITIGATION & LIES Village Capitals entire servicing history is a story of failure and deception. 
The XXXX " Joke '' Modification : The borrowers claim that the servicer offered " XXXX help '' is accurate. The XXXX modification offer was " a joke. '' The servicer 's own letter XXXX proves that this " help '' would increase my monthly payment from {$1800.00} to {$2000.00}. Offering a payment increase to a borrower in a documented hardship is not a good-faith offer of assistance.Interference by a Predatory XXXX Party : This XXXX " offer '' was further complicated by the " XXXX XXXX XXXX XXXX XXXX a non-HUD-approved " advocate '' I was working with. This group gave me conflicting information ( e.g., " {$1300.00} '' payment vs. the {$2000.00} ) and false deadlines. Instead of protecting me from this confusion, Village Capital legitimized this third party by sending my official modification offer XXXX and cancellation letter XXXX directly to their address ( " XXXX XXXX XXXXXXXX, XXXX XXXX XXXX XXXX XXXX XXXX '' ). This created the exact confusion that led to the default.False Claims of " Inability to XXXX '' : The XXXX denial XXXX was based on the pretextual claim that " we have been unsuccessful in reaching you. '' This is demonstrably false. As my email records show [ XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX ], Village Capital representatives like XXXX XXXX and XXXX XXXX, as well as the general " Mortgage '' inbox, were all in active communication with me via my email address. 

XXXX HARM AND DAMAGES INCURRED The servicer 's actions were not harmless. As a direct result of their conduct, I have suffered severe and compounding damages. I explicitly told Village Capital I had XXXX from the XXXX XXXXXXXX [ XXXX XXXX ]. Their response was to repeatedly, recklessly, and ( after my CFPB complaint ) willfully continue the exact behavior I told them was re-traumatizing me. This conduct directly contributed to my subsequent mental breakdown, the loss of my job while on XXXX, and the ultimate dismissal of my bankruptcy, which was my last line of defense. 

XXXX  IMMEDIATE REMEDY REQUESTEDI demand an immediate and full investigation into the servicing of my loan by Village Capital & Investment LLC.Specifically, I demand : That the XX/XX/XXXX, foreclosure sale of my home ( XXXX XXXX XXXX XXXX, XXXX, NC ) be declared void and set aside due to the servicer 's failure to conduct a valid loss mitigation evaluation ( the " VA vs. USDA '' error ) XXXX, in clear violation of RESPA. 
An immediate order compelling Village Capital to conduct a new, competent loss mitigation review based on the correct USDA ( XXXX ) program guidelines. 
That Village Capital be sanctioned for its willful and repeated violation of my protective order notification, a clear Unfair or Deceptive Act or Practice XXXX XXXX XXXX that inflicted severe emotional distress. 
That I be awarded all available damages, including for the severe emotional distress, financial losses, and the potential loss of my home, caused by your servicer 's illegal and reckless actions. 

I have " way more documentation '' and am prepared to provide it. I am fighting for my home, and I expect your agency to hold this servicer accountable for their illegal actions. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation