Consumer complaint received 2026-07-20 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: LoanCare, LLC
State: LA

Complaint narrative:
I am an unrepresented consumer filing a formal complaint against XXXX XXXX Mortgage ( XXXX ) and XXXX XXXX XXXX XXXX LoanCare , LLC for severe administrative errors, conflicting disclosures, deceptive verbal statements on recorded lines, and failure to provide material program disclosures during a servicing transfer. I am acting in good faith to restructure my mortgage via XXXX FHA loss mitigation to stay in my home, but the servicers are violating RESPA guidelines and FHA compliance.Account Timeline and Conflicting Disclosures : I purchased my home in XX/XX/XXXX with an FHA loan. My first payment was scheduled for XX/XX/XXXX. Right before that due date, my commission income was significantly halted by the federal government shutdown. I am a Sales Agent employed by the XXXX XXXX XXXX, selling and setting up certification training cycles for external clients, including government-funded organizations and public contractors whose budgets were immediately frozen by the shutdown.Prior to the shutdown, my performance records demonstrate financial stability and high performance : my year-to-date attainment was 102.98 % in XXXX, 108.32 % in XXXX, and 104.84 % in XXXX, ending XXXX at 104.84 % of my goal. This high-performing trajectory aligned me directly for a tiered fiscal year performance bonus scheduled to pay out in XX/XX/XXXX totaling {$25000.00} ( {$5000.00} at 100 % of goal, + {$10000.00} at 105 %, and + {$10000.00} at 110 % ). XXXX entirely to the shutdown freezing institutional client budgets, my attainment dropped to 88.09 % in XXXX and 77.46 % in XXXX, collapsing this pipeline and stripping away this anticipated lump-sum capital. XXXX verified this hardship and approved me for an FHA Deferment in XX/XX/XXXX, and a subsequent XXXX Forbearance Plan on XX/XX/XXXX ( setting my legal payments to {$0.00} from XX/XX/XXXX, to XX/XX/XXXX ). My normal XXXX base salary was {$18.00} per hour ( XXXX week ) in XXXX, increasing to {$19.00} per hour on XX/XX/XXXX. On XX/XX/XXXX, my daughter was born, and I was approved for employer-paid parental leave for XXXX weeks at 80 % of my base pay, compounding my temporary hardship. As client budgets slowly unfroze, my numbers began recovering, heading back up to end XXXX at 83.84 %. On XX/XX/XXXX, XXXX sent an incomplete application notice. On XX/XX/XXXX, XXXX sent a formal written notice confirming my application was fully Complete as of XX/XX/XXXX, XXXX XX/XX/XXXX, XXXX issued XXXX formal denial letter. The written letter stated I was denied for an FHA Standalone Modification and Standalone Partial Claim strictly because I " have not made at least the minimum number of monthly payments required per investor guidelines. " Verbal Misrepresentation : When I called XXXX to dispute this, a customer service representative stated on a recorded phone line that I was denied because " documents were never received. '' This verbal statement directly contradicted XXXX 's own XX/XX/XXXX written confirmation of completeness.Servicing Transfer and Pending Legal Dispute : To dispute these errors, I mailed a comprehensive Qualified Written Request ( QWR ) to both LoanCare ( New Servicer ) and XXXX ( Prior Servicer ) in strict accordance with the addresses listed in the " Notice of Servicing Transfer '' ( Attached as Exhibit J ). XXXX confirms the QWRs were delivered and signed for on XX/XX/XXXX and XX/XX/XXXX. LoanCare subsequently issued an Acknowledgement Letter dated XX/XX/XXXX ( Attached as Exhibit G ), confirming the inquiry was active. Despite this written acknowledgement and actual knowledge of the errors, LoanCare proceeded to issue a new denial letter just 12 days later on XX/XX/XXXX, demanding an immediate lump-sum payment of {$19000.00} to stop foreclosure.Failure to Disclose and Unlawful Evaluation : The XXXX Rule : LoanCare 's denial claims I am ineligible for an FHA Recovery Modification-Trial strictly XXXX I " have not made XXXX or more principal & interest payments. '' This automated rule directly penalizes me for utilizing a prior, lender-approved FHA forbearance XXXX that legally reduced my payments to $ XXXX of RESPA Early Intervention ( XXXX XXXX XXXX ) : At no point during this XXXX process did XXXX or LoanCare ever disclose that XXXX " XXXX minimum '' existed for modification eligibility. Hiding material guidelines while actively managing a year-long loss mitigation review prevented me from making informed financial decisions.

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