Consumer complaint received 2025-06-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: LoanCare, LLC
State: TX

Complaint narrative:
We can attach letter. But context of what was a simple issue that now is a mess is as follows. Property was damaged by fire XX/XX/XXXX during a covid forebearance. The inital insurance Lighthouse placed by mortgage Loancare was called and soon after XX/XX/XXXX we had freeze. So there were 2 claims. After back and forth with Lighthouse all XXXX we expected to start repairs ( prices went up, house is still vacant ). The mortgage asked to do modification after covid forebearnace XX/XX/XXXX. Started process and stated we were out of the property still trying to get repaired as on documents. Never got a balance before or after. Insruance then had us go under oath not knowing they would leave us hanging XXXX. Modification was finalized XX/XX/XXXX but per an error of Loancare asked to resign documents XX/XX/XXXX. We kept trying to reach XXXX even got public adjuster, till we got a letter in XX/XX/XXXX from Texas property and causalty insurance stating they would take over as XXXX was insolvent. Payments were on autopay as our concern was reapairs and well being of injured daughter, still dealing with burns.Mortgage increased in XX/XX/XXXX we called to ask for cheaper insurance as that and taxes were cause of over XXXX increase. Per the first call they asked if house was vacant and to submit fire report so that they can remove insurance and refund since the day it was vacant. We truly believed them and called to get report ( it is time stamped and we have call log to match dates ) we uploaded as told and waited. We called mortgage back to be told that we needed our own insurance ( even though we cant since we still till today have claims open and are large amounts ). We called again later to tell them this and denied what we were told at first only claiming the second call. The next calls we were told they agreeded with first call to give them 7-10 days to adjust account. This was ongoing and we tried making payement for previous amount and denied since it was a partial, but told they would notate XX/XX/XXXX This was ongoing. While we had to dispute taxes since fire was not reported,. deal with HOA who has been fining us and now a lien for non repairs, as well as XXXX. We got first check to start repairs XX/XX/XXXX. Per mortgage we were asked to make a contract with XXXX which details amounts to start with dates and they accepted. We were to begin XX/XX/XXXX and end by XXXX did not send any letter why they were holding check that was about XXXX and was to have half repairs done. Estimate was repeatedly told as they have all documents. By end of XX/XX/XXXX we called to ask and was told by rep that check was in freeze claim not fire claim and all documents were there as they also accepted check and documents for freeze claim as well. We were sent XXXX and sent letter that we were to repair 50 % with that. We called and denied extra funds. We filed report to bbb and texas mortgage and savings. This was XX/XX/XXXX. By XX/XX/XXXX when we called we were told we were in foreclosure. We had not signed any document as we had told them many times issues with mail nor had anyone in all calls mentioned anything nor did they call us. We get notice by attorney XX/XX/XXXX and we ask for forms to see what to do, modification was only solution since they would not keep word about insurance since it was cause of payment increase and even HUD counselor stated as flagged for excessive. We had no choice, as we were dealing with many things at once they were aware we were out of the home exceeded loss of use long ago and trying to repair but couldnt even start with XXXX. This had already breached contract with contractor. We had to keep emailing as calls would not go through during XX/XX/XXXX to ask if they had gotten all documents for modification. We got letter asking for missing document XX/XX/XXXX and another week later with no urgency when they knew it was urgent.We had all submitted but then got notice of accleration from attorney XX/XX/XXXX with foreclosure of XX/XX/XXXX we did not have a chance to get attorney, we knew amount was not correct and they did not follow XXXX XXXX guidelines nor did process for foreclosure. This and other things seem as retaliation. We started modification again, thinking this is why they keep holding funds yet we were not told anything, so no repairs were done. Check was returned by bank error in XX/XX/XXXX we couldnt call when we found out as we only were allowed to make payment by phone with rep. We then got a letter XX/XX/XXXX to make payment and add late fee. We then spoke to supervisor who said other wise and also said if error made by rep still on us even when we sent email showing it was not our error. We then called again and was told to go ahead with payment, but then got letters from attorneys again to redo forms or start foreclosure. We had no choice and redid XXXX spoke to supervisor in loss department and she suggested to get inspection even when nothing was done so they could see damage, we did and it failed but came at 3 % when XXXX had been done. Asked XX/XX/XXXX about payment made and told it was in escrow, we couldnt see this. Also asked since escrow analyisis XX/XX/XXXX stated a surplus over XXXX even asked if they could use funds in escrow for repairs to pay what was past due and denied this. Called to ask for funds and given an additional XXXX XX/XX/XXXX which was odd ( rep stated we had not requested anything since XX/XX/XXXX when we just had a month before. Modification plan was finalized XX/XX/XXXX and XX/XX/XXXX we did not get balance or updated account, just escrow showing shortage. We tried to do all as told and avoid further issues. As we had now damged roof and paid large deductible since insurance placed by Loancare is extremely high. Contractor even with delays has been helping and repaired roof to avoid further damage. XX/XX/XXXX roof was complete, state sent more funds we included letter. Then asked for inspections XX/XX/XXXX and XX/XX/XXXX both failed. Again followed what they asked by phone ( we have recordings and screenshots ). We asked for full audit of account since we can not close claims until repairs are done, we can not complete without funds, but inspections fail and we were denied reports. We submitted a formal request for audit of account as escrow shortages never explained, no balances before or after modifications, and then got Fannie Mae involved XX/XX/XXXX. They started changing calling for another isnpection XX/XX/XXXX but contractor was waiting on payment from XXXX work and just submitted roof checks. Another inspection was done XX/XX/XXXX after Loancare insisted even though nothing had changed since XX/XX/XXXX This inspection agan changed in percentages when no changes no explainations or answers, roof was only XXXX that was completed and passed 100 %. Yet we kept asking for funds XX/XX/XXXX for roof and payment from XX/XX/XXXX We only got payment for contractor work from XX/XX/XXXX yet no additional to continue nor roof as they kept asking for additional documents when online stated ready to send funds, we have screenrecording of these changes. They kept stating XXXX thing or another missing even when redoing what they asked. Fannie Mae rep spoke with XXXX every week, until call XX/XX/XXXX and from start we knew Loancare gave Fannie Mae wrong estimates and other information. Fannie Mae rep was aware of other issues but only focused if we were given funds in XX/XX/XXXX. Stated this was due since XX/XX/XXXX. we then got a XXXX with no explaination or proof of where it went or anything. We got response to audit request from XX/XX/XXXX on XX/XX/XXXX they only sent an account history with no running balances but told to look at escrow analyisis as all was there and nothing was wrong with our account. They also now deleted fire report as it was irrevelant? Still denied what we were told and did not send any call transcripts or inspection reports ( we are being charged some ) as this was claimed to be private information. We told the Fannie Mae rep all of this and we would send evidiance of all these issues as more kept coming up. When we tried to submit the information we got notice our case was closed. We called Fannie Mae again XX/XX/XXXX since no roof check, and ask why case was closed when rep stated wrong information even stated account was restricted since XX/XX/XXXX! This Fannie Mae XXXX claimed the investigations are VERBAL and have NO DOCUMENTED reports to give us. When we asked what to do then since there seems to be escrow mishandleings as well as other issues she suggesed we contact CFBP as they can not enforce Loancare even when we stated they failed to follow guidelines or allow us to send proof. She stated not wanting to speak after we said then should we find legal counsel and last thing we asked was for release of roof check. The check was sent via FEDEX within 3 days yet they sent via regular mail checks of over XXXX. All of this had us look into everything where we uncovered a series of issues.We have found a list of items and now want to report not only Loancare but Fannie Mae as they have probably been aware by the way they acted towards us. The account history sent by Loancare shows contradictions, which we have sent many letters via certified mail, asking about the XXXX which will then have to corrected, the escrow was then again short after last call with Fannie Mae XX/XX/XXXX XXXX of over XXXX with no changes to taxes or insurance yet shortages since XX/XX/XXXX, XX/XX/XXXX XX/XX/XXXX with no explaination. No running balances and account history does not match escrow analysis, we also found fees during COVID under Cares act we were under forebearance. We found many fees not on statements but in account history. Our account was originally XXXX when were transferred to them XX/XX/XXXX. After last modification which we kept askiing why so high with no balances is now at XXXX the amounts do not match because we found that they have misapplied funds. This is not just clerical errors these are much larger. We found they used wrong information when they tried to foreclose on us making this illegal, then used this wrong information to make most recent modification. We believe they did this so account would match repairs since repairs went up as more issues were found by the STATE OF TEXAS PROPERTY AND CASUALTY INSURANCE. Not only this we also found that an intrest amount was deposited according to Loancares account history that they have claimed is correct. The amount deposited was deposited XX/XX/XXXX but stated as due date XX/XX/XXXX how is this when we have had many modifications? So not only they have misapplied funds they did not account that how was account restricted after modifications, and we have an escrow intrest check from XX/XX/XXXX for XXXX and had closed a claim on roof in late XXXX? There on account history all is shown as well as trial payments for a modification they have never made mention of XX/XX/XXXX. This is the most important since they did not use this in the XXXX statements which they did not place on hold they kept adding while in forebearance and affected credit since then. So the XXXX statements includes wrong totals that were used in modification of XXXX then even then they used wrong dates after for statements causing even further errors in statements afterwards causing false inflation of account withholding funds, restricting account damaging us in all ways possible. As of yet have they responded to letters asking about everything. What was suppose to be a smaller issue led us to recently discover the bigger issue that LOANCARE AND FANNIE MAE have been doing to us. We wonder how many others have lost homes due to these types of errors. We are sure there are more issues, errors, and will have an auditor look at as well. They keep raising payments with escrow shortages on purpose without explaination as well. How do we get a 1099-int but shortage of escrows? They breached contracts and still denied any wrong doing per their responses which in itself has contradictions. We have proof of every thing we have mentioned, original documents that will be submitted at your request.

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