Consumer complaint received 2026-01-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: LoanCare, LLC
State: AZ

Complaint narrative:
I am filing this complaint due to improper mortgage servicing, failure to review a complete short sale / loss mitigation application, inconsistent and undisclosed documentation requirements, and inappropriate handling by the servicers loss mitigation and resolutions staff. 

My property went under contract on XX/XX/XXXX with a bona fide purchase offer of {$670000.00}. ( My non-short-sale payoff is approximately {$700000.00} with principal balance of XXXX ) I submitted my original short sale packet on XX/XX/XXXX, and from that point forward I proactively called to confirm the status of my application and whether any additional documentation was required. Because I proactively called in at least twice a week, I was told that there was a clerical error, I mistyped and my social security number was one digit off and that my listing agreement had expired. I have had the property for sale since XXXX of XXXX and signed multiple extensions to extend the listing. So even though they had the buy sell contract and every other document with my correct social security number they held up my file for review. Once I found this out I resubmitted those documents that same day within an hour. I was repeatedly told that documents take time to populate in the system and that I should continue calling back. At no point during these early calls was I informed that I was approaching a deadline that could result in denial of review. 

On XX/XX/XXXX, I was told for the first time by a front-line agent that I was within a XXXX pre-sale window, that my file was closed, and that the short sale was not happening and there was nothing I could do. I requested escalation and was transferred to a higher-level representative, XXXX, who stated she would re-open the file for immediate review. She did not guarantee approval, but stated that someone would contact me by email within XXXX hours if anything further was needed to mark my application complete and proceed with review. She also stated that today was day XXXX inside the window and if i got any further documents in requested by the next day, day XXXX, they could still review. 

The following day ( XXXX  ), I called to confirm whether documents I had emailed the prior day were uploaded. These documents included : A third month of personal bank statements ( 90 days ), even though the servicers website states only XXXX months are required, which I had already submitted on XX/XX/XXXX ; and Buyer earnest money documentation, which is also not specifically listed on the servicers financial assistance page as a required document.

The agent located the documents and stated that the buyers earnest money documentation MIGHT not qualify, but could not explain what would be acceptable. I immediately advised that I could obtain additional documentation from the buyer if needed, and I did so the same day by submitting a second earnest money document with additional detail. I was then told that anything submitted on Friday would not be uploaded until Monday and that I should call back then. 

I called back immediately when the office opened on Monday, XX/XX/XXXX and was told nothing had uploaded yet and to call back in the afternoon. When I did, I was informed the documents had uploaded but that the buyers bank statement MIGHT be flagged because it was only page 1 of 2. This was the buyers personal bank statement, not mine. The servicer had only requested proof of earnest money and had never provided any written requirement for full bank statements or unredacted personal financial information. Please note that both these instances this is an agent telling me it MIGHT not get approved by underwriter, this is not the underwriter saying they need something different, but even with all this documentation my file was never marked complete.

At this point, my file continued to be marked incomplete despite my immediate responses and submission of all requested materials. I was never provided a written or consolidated list of outstanding requirements.

I was then tolddespite this requirement not appearing anywhere on the servicers financial assistance or short sale documentationthat I needed to provide all pages of the buyers bank statement. I returned to the buyer and requested the full statement, which raised legitimate privacy concerns. Nevertheless, the buyer provided the full statement with all information redacted except name, dates, and checking account balance. 

On Tuesday, XX/XX/XXXX, when I called again, I was immediately told that my application was incomplete and that there was nothing they could do. The agent was dismissive and aggressive. I requested to be transferred back to the Resolutions team I had previously worked with. The agent acted offended by this request and stated there was no one who could help. 

When transferred to Resolutions, I was again told that as of XX/XX/XXXX the case was closed, that the delay was entirely my fault, and that no review would occur. I attempted to explain that I had submitted my original packet on XX/XX/XXXX, that I had been proactively calling as instructed, and that I had responded immediately to every request. The representative stated there was no one else to speak with, said this ends now, and told me I should have tried earlier, despite the fact that I previously attempted to pursue a short sale before this offer and was told one could not be considered without a buyer in place. 

The representative refused to transfer me to anyone else, stating there was no need and that the matter ended with her. The tone of the call escalated to the point that I was visibly shaking and crying while attempting to remain composed. 

At that point, I stated that I could not understand why the servicer would choose foreclosure over a {$670000.00} bona fide offer, particularly where the servicer already has all documents needed for complete application plus some, including : The executed purchase contract, The listing agreement, and most recent extension, the Listing agreement clearly states that if we go under contract, which we did, it extends the contract Buyer proof of funds. 
2 year tax returns for myself signed IRS Form 4506-C Assistance application Hardship Letter MLS Listing Expense statement Income Verification XXXX  days personal bank statements Authorization letter for realtor Estimated Closing disclosure Proof of buyers earnest money {$6700.00} Only then did the representative pause, type silently, and state that someone will be contacting you. When asked who, she stated XXXX, the resolutions XXXX who had reopened my file on XX/XX/XXXX. She verified my phone number and stated I would be contacted within XXXX hours, and good luck on overturn. I have not idea what that means. I don't know where this stands. 

Throughout this process : I consistently stated in emails and calls that there was a {$670000.00} bona fide offer ; The servicer had all core transaction documents ; Agents frequently did not open documents and relied solely on internal notes ; When an agent finally opened my application, they acknowledged it was fully completed, contradicting prior claims that it was incomplete, but was never marked complete. 

I was also accused of messing with the system by calling daily and escalating, despite the fact that I was repeatedly instructed by agents to call back for updates. My calls were made in good faith to comply with requirements and preserve my home, not to disrupt operations. 

Any delay in review was caused by inconsistent verbal requirements, rolling documentation demands not disclosed in writing, failure to timely upload documents, and refusal to review materials already submitted not by any failure or refusal on my part to cooperate. 

The foreclosure sale is scheduled for XX/XX/XXXX. I am willing and able to vacate the property immediately if required.

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