Consumer complaint received 2024-11-06 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:
I have sent previous correspondence at the beginning of this year to try and get some assistance with my Loancare Mortgage. The Loancare modification documents that I am submitting are being rejected for various reasons that are either not communicated to me in a timely manner or the reasons are not accurate or valid. I normally do not find this information out until I call in and reach a representative to advise on the status. It has been relayed to me continually that the loan modification documents need to have the power of attorney verbiage since I am the power of attorney for the co-borrower. I and whomever the notary has been have continually added the power of attorney verbiage on the paperwork only for it to be continually rejected for one reason on another. I was then later advised after several document submissions that actually, Loancare was responsible for adding the verbiage on the documents and not myself or the notary as had been told to me by Loancare numerous times. Any modification that I previously signed regardless of their reasons would have been null and void regardless as it was not created properly with the proper verbiage. I reached out to the CFPB in an effort to resolve these issues and I did get a response back from Loancare after they investigated. The correspondence they sent was incomplete and was missing the second page of which I had to end up requesting. In addition, they took little responsibility for their negligence. 

A few months later Loancare did produce a new modification and sent it to me on or around XXXX XXXX. Unfortunately, once again they did the same thing which was not provide the power of attorney verbiage on the documents. I had to notify them again that this was not accurate. 

They eventually resent the paperwork with the verbiage on/or around XX/XX/year>. I signed the paperwork with their notary then I was later advised that it was turned in late and that the co-borrower was not acknowledged. If your contracted notary company that is used for your Loss Mitigation/Notary Services and they received the documents then why would they not inform me or Loancare of what the deadlines were for return. In addition, if I am the co-borrowers power of attorney and your contracted notary did the signing and you already had the power of attorney verbiage on the documents then how is the co-borrower not being acknowledged?

The documents for a new loan modification were sent again on/or around XX/XX/year>. Now the payment has increased around {$500.00} which I was not aware of because their notary would normally call to schedule the signing and advise they had the documents. I received a call from a representative advising me they sent me some documents around a few weeks prior and wanted to know when I was going to sign them. He also wanted to know if I needed some help with a notary? I was told that because I asked to change the modification date back in XXXX that was the reason for the change in payment. I advised them that when I asked they told me no that I could not change the month of the beginning payment date. I was already aware that they were not going to honor that, so why are they using that as an excuse on why they upped the payment. Why did they not just recalculate and put it in the partial claim arrearages as they did before instead of increasing my payment, especially since their negligence is causing these issues. Once again, why allow me to sign the modification in XXXX that was already in existence if you were going to change the XXXX mortgage payment date? 
Loancare is now trying to foreclose on my home once again. I was advised that since they have been negligent they have most likely violated The Homeowners Bill of Rights ( HBOR ) and most definitely should not be trying to foreclose once my evidence is submitted as the repercussions will be more extreme for them after the fact.

Furthermore, I was told from Loancare that I no longer qualify for anything related to COVID however that is not accurate. I am supposed to be offered the following solutions in the following order : Informal and Formal Forbearances ; Special Forbearance Unemployment COVID-19 Advance Loan Modification COVID-19 Recovery Loss Mitigation Options ( Handbook 4000.1, III.A.2.o.ii ) COVID-19 Recovery Standalone Partial Claim COVID-19 Recovery Modification Payment Supplement COVID-19 Pre-Foreclosure Sales ( COVID-19 PFS ) ( Handbook 4000.1, III.A.2.o.ii ( D ) ( 1 ) ) COVID-19 Deed-in-Lieu ( COVID-19 DIL ) of Foreclosure ( Handbook 4000.1, III.A.2.o.ii ( D ) ( 2 ) ) Can you please assist in a resolution with Loancare so that we can come to an amicable resolution that is not foreclosure. I will be more than happy to send proof of all statements listed above. Thanks in advance for your timely assistance with 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