Consumer complaint received 2025-10-31 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: LoanCare, LLC
State: CA

Complaint narrative:
I am responding to LoanCares letter dated XX/XX/year>, via this complaint portal because prior direct inquiries have gone unanswered. LoanCare has demonstrated a pattern of responding only through formal complaint channels, and I am therefore using this platform to ensure my concerns are acknowledged and addressed. 

The XX/XX/XXXX letter failed to resolve key issues regarding my FHA forbearance, including the improper past-due status for XXXX, interest capitalization during an active forbearance period, and lack of acknowledgment of my hardship reaffirmation submitted on XX/XX/XXXX. I am requesting a full explanation and correction of these servicing errors in accordance with HUD guidelines. 

Please explain why further review is necessary when you already have a complete hardship file on record. I submitted my XXXX award letter, layoff notice, and prior year W-2, none of which have expired or changed. These documents were provided on XX/XX/year>, via email and certified mail, and reaffirmed in my follow-up letter dated XX/XX/XXXX, emailed on XX/XX/XXXX well within the XXXX window allowed under FHA guidelines. My hardship remains unchanged, and FHA policy allows for streamlined extension of forbearance in such cases. Reassessing my eligibility without cause contradicts HUD servicing rules and has led to unnecessary delays, delinquency notices, and credit reporting errors. I request that my extension be processed without further delay and that my loan records be corrected to reflect compliance with FHA protections. 

Why is XX/XX/year> showing as past due when my forbearance was approved starting XX/XX/year>, as you confirmed in your XX/XX/XXXX letter through CFPB? See attached screenshot. 

Why was interest capitalized on XX/XX/year>, during an active forbearance period, which violates FHA servicing guidelines? My original forbearance was approved from XX/XX/XXXX to XX/XX/year>, and I submitted a reaffirmation of my unchanged hardship on XX/XX/XXXX, well within the XXXX window allowed under FHA guidelines . Capitalizing interest during an active forbearance especially before a decision on my extension request contradicts HUD servicing rules and falsely shifts my repayment start date, triggering delinquency notices and credit reporting errors. I request a full explanation and correction of this servicing action. See attached. 

Can you please explain how {$1700.00} in interest was accrued and capitalized on my loan balance when XX/XX/year> was paid in full in XXXX, and my FHA forbearance began on XX/XX/year>? FHA guidelines prohibit interest capitalization during active forbearance, and my hardship reaffirmation was submitted on XX/XX/XXXX well within the 90-day window allowed under HUD rules . My loan balance was showing {$290000.00} ( as reflected on my credit report ). This was based on my online account balance of {$290000.00} minus a {$60.00} late fee paid with my XXXX payment is the XXXX. However, on XX/XX/XXXX, LoanCare reported a balance of {$290000.00} to the credit bureaus confirming that interest was improperly capitalized during my forbearance period. I request a full breakdown of how this {$1700.00} was calculated, why it was added to my principal, and immediate correction of my loan records and credit reporting to reflect compliance with FHA servicing protections. 

I never received an acknowledgment letter dated XX/XX/XXXX confirming receipt of my hardship application or reaffirmation request. Instead, I received a delinquency notice demanding payment by XX/XX/XXXX for XXXX and XXXX, despite being in an active FHA forbearance and having submitted my extension request on XX/XX/XXXX. 

While I later saw the acknowledgment letter posted in my online account, it was never sent or communicated directly, and no confirmation was provided at the time of submission. FHA guidelines require servicers to acknowledge receipt of hardship documentation and suspend collection efforts while the request is under review. LoanCares failure to acknowledge my submission and their issuance of a payment demand contradict these rules and have caused unnecessary stress and credit harm. 

Why was my initial forbearance history erased or omitted from my account records? 
My original forbearance began on XX/XX/year>, and was confirmed in your XX/XX/XXXX letter via CFPB. However, my account no longer reflects the original forbearance period, which was previously visible on my dashboard and included the initial processing steps. My forbearance began on XX/XX/year>, and was confirmed in your XX/XX/XXXX letter via CFPB, yet the entire history has been erased or omitted from my account records. FHA guidelines require servicers to maintain accurate records of all forbearance activity, including start and end dates, hardship documentation, and extensions. The removal of this history contradicts HUD servicing rules and has contributed to delinquency notices, credit reporting errors, and confusion about my account status. I request that LoanCare restore the full forbearance history and correct all related servicing actions.

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