Consumer complaint received 2025-01-02 00:00:00
Product: Mortgage — USDA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: LoanCare, LLC
State: TX

Complaint narrative:
Toward the end of XXXX I was laid off from my job and submitted a mortgage assistance application to my loan servicer LoanCare ( XXXX XXXX ) on XX/XX/XXXX. Note I never had a missed or late mortgage payment prior to this. I was applying for a relief on my monthly mortgage payment while I find another job. Through this process I learned that despite enrolling in electronic communication LoanCare will send documents via physical mail with instructions on completing the application. Every time I turned something in, something else was missing. The last documentation I sent to them was on XX/XX/XXXX. Following this I would receive phone calls asking that I remove the credit freeze from my credit report and they would detail how many days I needed the freeze lifted ; which never exceeded 15 days. At this point I have done everything and talked to Loancare reps over the phone, yet I would get letters in the mail notifying me of missed mortgage payments. Distinctly I remember one of the reps on the phone telling me to disregard these letters as " we are working with you and that department just automatically sends them ''. However, this application isn't approved and in place until XX/XX/XXXX, unbeknownst to me. In XX/XX/XXXX I paid the past due amount and late fees for XX/XX/XXXX & XX/XX/XXXX and then again in XX/XX/XXXX paid late XX/XX/XXXX ; it's still unbeknownst to me the forbearance is still not in place even though I was told it was approved for 3 months. 

XXXX - XX/XX/XXXX payments were in forbearance, however, I still had not found full time work and requested an extension on the forbearance which was approved for an additional 3 months. Again, timeline was not clear. It was approved for XXXX XXXX. On XX/XX/XXXX I made a payment for XX/XX/XXXX. They applied this payment to XX/XX/XXXX. So now I have a total of 6 payments from XX/XX/XXXX- XX/XX/XXXX that I owe under forbearance at {$2100.00}. I had no issues with Loancare at this point. 

In XX/XX/XXXX two separate things affecting my payments took place. First, my homeowners insurance changed with an increased premium. This was accidentally charged twice. When the overpayment came back to me from the insurance company I paid it directly back to Loancare escrow only payment. Second, documentation regarding my homestead exemption to lower my property taxes became available and I turned that in. I called Loancare several times about these two things where they redid the escrow analysis. My monthly mortgage payment went from {$2100.00} to {$2500.00} between XXXX and then {$2900.00} for XXXX. 

On XX/XX/XXXXXXXX  I submit an application. This time I am trying to set up arrangements for coming out of the forbearance as I now have found a permanent full-time job. Keep in mind this month 's payment is in forbearance. So begins the game of Loancare representatives lying, not doing their job, and more lying. I made over 20 calls to Loancare between the months of XX/XX/XXXX- XX/XX/XXXX. During the months of XXXX - XXXX every time I called I would inquire about the status of the application as well as my statement and escrow balance and why all of this seemed off. I had representatives give me the run around so many times. They kept claiming my credit freeze was not lifted even after giving them the proof that it was. This goes on for an entire two months with different reps telling me different things. You never speak to the same person twice, even when you request a specific person they find a reason to not put you in touch with them. I had some calls where I was on hold for over 45 mins and then the line disconnected. No attempt to call you back even though they have your number and make you go through this verification process every time you call. Next, they send a certified mailed letter saying my application was denied for being incomplete. I spoke directly with a manager and still no one at Loancare took accountability for what was happening. They also would not let me make any payment unless it was the total amount owed. 

Now I'm being told that I have to submit the assistance application all over again ; which I do on XX/XX/XXXX. Now a current mortgage payment is due for 2 months as it is XXXX and it's that extremely higher amount + late fee for XXXX. I pay 1 of these with hesitation as I've been in communication with the company for over two month about trying to get on track & the concerns about the new payment amounts, to no avail. I began receiving the late mortgage letter in the mail again, but, from the past, disregarded them as I was told to from the rep back in the beginning that they just send these automatically. 
Then, a person started showing up to my house taking pictures of my property and would put a note on my door that stated my loan servicer has hired our company to verify occupancy. When I called the number I am informed this is something they do when they're placing your home for foreclosure. I never receive any notification from Loancare that they have actually started this process, I just received the redundant letters that state the missed payments and to call so we can help you ( I've already been speaking with them a lot ). The back and forth with the application begins again. Every time I turn something that was missing in and ask if that is everything, I am assured " yes ''. Then I would get a letter in the mail stating otherwise or when I call to check up on it I would get told something else is missing. During the month of XXXX is the first time someone on the phone speaks of the foreclosure, and when I ask questions about this they say " oh it's been paused, because we're working on your application ''. They were sneakily trying to take my home even though I had been in communication with them all that time. On XX/XX/XXXX is when I'm finally told the application is completed, foreclosure proceedings have stopped, and I was sent a payment plan. I was not approved for loan modification, according to them, as I have the means to pay. I accepted the payment plan just so I had time to figure out what to do next. The payments are {$4400.00} a month for 11 months beginning XX/XX/XXXX. This is comprised of a current payment and a past due payment of {$2200.00} ( they took the first payment of this plan in XXXX ). However, my statements have fluctuating payment totals, none of them say {$2200.00} as the current monthly payment. Plus they're charging me their attorney fees and inspection fees that were accessed for this foreclosure attempt. Finally, I am STILL receiving letters in the mail about missed mortgage payments and they send this agency to my house to post this note on my door. Today, XX/XX/XXXX I catch the guy and ask him what is he hired to do and he says literally to take a picture of the note that is placed on my door after the company has attempted to contact by phone and email. The note says " URGENT NOTICE : XXXX, an independent field inspector called on you today. Please contact LoanCare of behalf of XXXX ( XXXX ) XXXX '' LoanCare has never attempted to contact me by email and I have no calls from them. What exactly are they doing and why am I being charged for this every time they send this guy out?

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