Consumer complaint received 2026-03-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: PLANET HOME LENDING, LLC
State: TX

Complaint narrative:
Summary : Planet Home Lending issued a Loan Estimate on XX/XX/XXXX, showing {$0.00} payoffs and {$32000.00} cash. A title search dated XX/XX/XXXX, had already revealed a {$23000.00} HUD lien. Despite this knowledge, the lender omitted the payoff. I learned about it one day before closing when the Closing Disclosure arrived showing my cash reduced to {$9100.00}. On XX/XX/XXXX, I exercised my right to rescind on the lenders own Notice XXXX XXXX XXXX XXXX form, stating in writing that I was misinformed. The lender has not honored my rescission. They have not returned my money. They have not released the lien. I am now being held to a 30 year, 11.625 % loan for {$9100.00} in cash that I was told would be {$35000.00}. '' I rescinded three times : on the lenders form ( XX/XX/XXXX ), by email ( XX/XX/XXXX ), and by DTPA notice email ( XX/XX/XXXX ). Planet Home Lending has taken no action to reverse the loan. Full story : I called planet home lending requesting a HELOC LOAN for my fha loan, loan officer suggested a better loan to apply to=a cash out conventional refinance. the loan estimate did not have any hud payoffs listed and it was not disclosed that in order to do a refinance the hud payoff must be paid off first. this was not disclosed anywhere on the application in conversations with the loan officer/ call recordings/inquiry about the loan. i applied for a {$35000.00} refinance loan was given {$9000.00} of it only after they paid off a third party hud lien with fha. If they had educated me on the process from the beginning that although im applying for a {$35000.00} loan i would only get {$9000.00} after they pay off hud, i would not have done it, because financially it does not make sense and the money is useless to me now @ {$9000.00} disbursed, so little that the reason why i applied for the loan in the first place to start projects and improve my financial position is now defeated and i can no longer start the projects with {$9000.00} vs the {$35000.00} i applied for. I am a victim of predatory lending and the structure of the loan was not discussed/educated to me up until it showed up a day before/ on the final day in closing documents. the company has locked me into a thirty year second lien at 11.625 % interest that will cost {$120000.00} over 30 years if carried to term for money i did not physically receive. ( only $ XXXX disbursed ) The finance charge alone is {$91000.00} for money i did not fully receive. 3/4 of what i applied for of the {$35000.00} loan was paid to HUD and i only received 1/4 of the loan ( {$9000.00} ) that i applied for. The Total Interest Percentage on this loan that I will pay over XXXX yrs is 260.292 % for information that was hidden throughout the whole loan process and only disclosed at/day before closing. I signed for what we discussed with the loan officer at closing and didnt realize that planet home lending had restructured the loan and paid off a 3rd party in the final closing documents that were 217 pages at signing only leaving me with $ XXXX {$35000.00} loan. If they had educated me on the restructuring of the loan, i would not have agreed to this loan structure as the partial claim loan ( hud loan ) sits at 0 % interest for the duration of the loan and will only be due if i sell the house or after XXXX, now planet home lending has left me with a total interest percentage on this loan of 260 % over 30 years for money i did not actually receive. ( i only received $ XXXX {$35000.00} ). I rescinded the loan on XX/XX/XXXX, XXXX, XX/XX/XXXX as soon as i saw {$9000.00} in my account received vs the {$35000.00} that i applied for in my account and asked them to stop the process immediately because i had been deceived and not educated on the restructuring of the loan but they went ahead and processed this loan and denied any wrong doing on XX/XX/XXXX. After I received the {$9000.00} in my account and asked the loan officer where the rest of the {$35000.00} was, for the first time on XXXX XXXX told me through text that, " typically if we are paying anything off, we send those directly to the other lenders, then the part that is yours is directed deposited. '' The loan officer should have told me this before I went ahead with the application and i would not have applied for this loan that does not benefit me but benefits the company instead. The company is charging me total interest of 260 % over 30 years for money i did not actually receive in my hand. ( i only received $ XXXX {$35000.00} ). I am unable to start the projects i wanted to start with the {$35000.00} ( because only {$9000.00} was received ) to improve my situation as a single parent. I am now stuck with a monthly payment of $ XXXX for the next 30 years for money that i did not actually receive ( only received physically $ XXXX {$35000.00} loan- {$26000.00} went to pay off a hud partial claim that was not disclosed to me until closing hidden in 217 paged document. ) I am a victim of predatory lending. I have the recording where the loan officer told me initially that my first loan ( fha loan ) will remain untouched, meaning this new conventional loan application will be a new loan that will not be affected by the first loan in anyway. I relied on this information and agreed to the whole process of the {$35000.00} loan application only to receive {$9000.00} at the end and the 1st loan and its partial claim being dragged into the second loan which is not what was advised on the original call with loan agent. After all i had called about a HELOC ( home equity line of credit ) but advised a conventional refinance was better only for them to make me a victim of predatory lending though a hidden restructuring of the loan that was disclosed at/around closing.

Company response to consumer: Closed with explanation