Consumer complaint received 2022-10-01 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: LoanCare, LLC
State: VA

Complaint narrative:
I recently closed on the sale of a home in the State of Florida on XX/XX/XXXX the company that I made payments too during the existence of my mortgage is called LOANCARE This above mentioned company engaged in unfair mortgage practices and failed to disclose important information in a concise and clear manner to me the homeowner and in doing so this company failed to keep a faithful allegiance to the law by trapping me into a mortgage modification that was unfair, under duress, unclear and hypocritical to fair mortgage lending practices. 

My former home was impacted with significant damage during a Hurricane on XX/XX/XXXX, I purchased the home on XX/XX/XXXX As a direct result of the hurricane XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  when I was placing a bucket on the floor to collect rain water that had began to penetrate the home through various sections of the home during the hurricane. 

I contacted the insurance company shortly thereafter the Hurricane damage had been assessed, I also contacted FEMA and I also contacted LOANCARE The insurance company passed the buck on to FEMA neither the insurance company nor FEMA did anything to help me repair the home I needed money urgently to repair the home that I shared with my wife and children. 

I did not have the finances to repair the home and was living under third world conditions with bags taped to the ceiling where the sheetrock had collapsed the damaging rain waters destroyed the carpeting throughout sections of the home walls were damaged the garage ceiling was damaged furniture was destroyed needless to say things were exceptionally bad for myself and my family for several months when it rained outside it rained inside of our home I received a check for {$340.00} from FEMA it took FEMA 30 days to assess the damage to my former home it took them another 30 days to send me that check. 

I am a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX for whom I worked for during the tragic events on XX/XX/XXXX. 

Since I did not get any help to repair the home from neither the insurance company or FEMA I contacted the Small Business Administration also known as SBA and they sent out a contractor to look at the damages to the home the SBA approved me for {$75000.00} to repair the home of which {$62000.00} was used to get the home up to livable standards, I held up my obligation to repair the home that I wanted to walk away from after the damages to the home and the XXXX XXXX XXXX XXXX XXXX XXXX XXXX but I had no place to go I suffer from XXXX and several other XX/XX/XXXX related XXXX 

LOANCARE placed me into a six month ( 6 ) non payment plan as it took six months ( 6 ) to repair the home from the damages caused by the Hurricane. 

I informed LOANCARE step by step of each step during the rehabilitation process of the home upon the completion of the repairs I contacted loan care to resume payments with the understanding that they would discount the amount of the SBA loan as I secured our competing interest in the property and they disgustingly placed me into a loan modification program that took the six months that I did not pay as the home was being repaired and placed it unto the back end of the modification without making this clear to me I found out that LOANCARE never discounted the loan from the loan modification agreement that they sent me when I contacted them in XXXX to resume my mortgage payments under the original note terms. 

LOANCARE engaged in unfair practices and failed to make the terms of the modification clear to me knowing that I took out a loan to repair the home that we both had a secured interest in. 

Upon the sale of the home on XX/XX/XXXX I paid off the mortgage the SBA loan and LOANCARE took an additional {$62000.00} dollars as they said I had a third mortgage with them for the six months of non payments that accrued with interest during the time the home was under rehabilitation. 

This practice is totally unconscionable and unfair as I never abandoned the home and took out a loan to repair the home that myself and LOANCARE had a secured interest in the same amount of money that I borrowed to repair the home LOANCARE without my knowledge failed to disclose this from me had I known this what would of been the purpose of me borrowing money to repair the home we both had a secured interest in only to have to repay back the SBA loan of {$62000.00} dollars and then also pay LOANCARE {$62000.00} dollars upon sale of the home how is that equitable to a homeowner who suffered damages to the home he shared with his family and was also XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, all of this is documented by SBA records, medical records and photos of the damage to the home. 

I did not get any financial assistance from the home owners insurance policy and received a check from FEMA in the amount of {$340.00} dollars. 

I contacted LOANCARE to get a better understanding of how is it that we both have a secured interest in the property the home suffers significant damage I XXXX XXXX I took out a loan to repair the home LOANCARE placed me in a six month non payment plan as the home was being repaired and when I sold the home those six months cost me an additional {$62000.00} dollars, this can not be legal mortgage practices and mortgage holders need to be made aware of this practice so that they don't fall prey to predatory lenders like LOANCARE. 

That third mortgage that was almost the exact amount of the loan never was on my credit report and I was informed of that amount two days before selling the home this can not be legal practices by a mortgage service provider. 

I want LOANCARE to pay me back with interest for the loan that I took out with the SBA to repair the home and for LOANCARE to refrain from those practices in the future with other homeowners similarly situated during times of duress and only find out about this practice when the homeowner decides to sell the home.

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