Consumer complaint received 2026-04-21 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Paying off the loan
Company: Hometap Equity Partners, LLC
State: VA

Complaint narrative:
What happened : I will turn XXXX on XX/XX/XXXX. As my retirement comes close, this hit to my plans is significant. In order to ready my condo for sale, I had to take a XXXX loan and liquidate a XXXX IRA to fund it. Had I not done those upgrades the market price of my condo would have barely covered the XXXXXXXX XXXX settlement request. In XXXX, I entered into a Home Equity Investment agreement with Hometap Equity Partners , LLC after multiple conversations with their agent, XXXX XXXX. I was explicit from the outset that my sole objective was to protect my only significant asset my condominium and that I needed this to be a sound long-term financial decision. XXXX XXXX was fully aware that my property had experienced above-average equity appreciation during the pandemic-era sellers ' market. Rather than disclosing how that appreciation would dramatically increase my ultimate repayment obligation, he used it as a selling point. He specifically asked whether I planned to remain in my home for at least ten years, and assured me that my equity position would only grow stronger over time. At no point was I given a plain-language explanation of how the payoff calculation actually works, or that rising home values would directly and dramatically increase Hometap 's claim against my equity at settlement. When I sold my property on XX/XX/XXXX, Hometap demanded a payoff of approximately double the amount they originally advanced to me. This figure was presented through an opaque alphanumeric formula with no clear breakdown. Throughout XXXX and XXXX, I made repeated good-faith efforts to obtain a transparent explanation of the calculation from my assigned representative, XXXX. These requests were met with rigid, non-responsive replies and no meaningful attempt to negotiate or clarify. In XX/XX/XXXX, I filed a formal complaint with the Massachusetts Attorney General 's Office ( Complaint No. XXXX ). The AG 's office retained my complaint but advised me to seek private relief due to jurisdictional limitations. On XX/XX/XXXX, I sent Hometap a formal certified demand letter addressed to General Counsel XXXX XXXX at their headquarters, XXXX XXXX XXXX, XXXX XXXX, XXXX, MA XXXX. I requested a transparent recalculation, a written explanation of all components of the payoff formula, and a fair settlement. As of XX/XX/XXXX 14 days after delivery Hometap has not responded in any form. I am a Virginia resident. The property was located in North Carolina. Hometap is headquartered in Massachusetts. I am seeking federal intervention and a full accounting of the payoff calculation, along with a fair resolution. What would be a fair resolution : A transparent, itemized recalculation of the payoff amount based strictly on the terms of the XXXX agreement, and a reasonable settlement that reflects the actual appreciation of the property rather than an inflated formula never disclosed to me at signing.

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