Consumer complaint received 2019-04-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: LoanCare, LLC
State: CA

Complaint narrative:
XXXX XXXX XXXX XXXX, XXXX CA XXXX XXXX XXXX LoanCare LN XXXX We started a short sale with LoanCare on XX/XX/2018. Today, LoanCare has come up with even more illegal acts to add to the list of illegal acts they have committed on every file we have with them..

LoanCare has outright denied the short sale due to the existence of the PACE lien and having a low offer. LoanCare is demanding for the seller to pay for a lien that is currently on title, in order that it be removed from title before they will continue their review of the short sale, and have refused to counter us until the seller removes the lien from the property.

There are several issues with this request.

1. This is a violation of CFPB Guidelines, as they are committing illegal acts.

2. This is an illegal request, according to California State Law CA 580e. See attached code.

3. This is a Federal RESPA violation, as they are requiring liens to be removed outside of escrow.

4. This is a violation of servicing guidelines, as they are committing illegal acts Does the investor know this is going on?

5. The California Department of Real Estate has stated emphatically that hiding liens from the investor, which LoanCare is attempting to do, is in fact ILLEGAL 6. LoanCare is attempting to act as escrow title in a transaction for which they are not only not in that role, but more obviously, they do not have the training, education nor licensing to act as title or escrow in the loans they service. This is also a conflict of interest for them.

7. LoanCare has no say in what happens to the other liens on the property. They do not have authority to dictate ANY TERMS on ANY OTHER LIENS. LoanCare needs to keep their focus on the loans they do service and do this appropriately. So far, they have shown an inability to service their loans appropriately since they do not even know the laws for the state and country in which they are servicing. **They do not understand current State and Federal Laws!!

We have explained several times that this PACE lien is being assumed by the buyer and will be resolved through the escrow process. Additionally we have explained that the PACE lien is a state and federal program that is hooked to the property taxes, that it is superior to the mortgage lien and as such will survive any foreclosure. LoanCare is refusing to follow State and Federal Laws and says they dont care they are demanding the seller pay to have the PACE lien removed.

Since LoanCare has only recently come into servicing loans in a short sale situation, we have seen disturbing trends in their document requests. These are happening on EVERY SINGLE FILE WE HAVE WITH LOANCARE. It is apparent to me that they are currently exceptionally unqualified to be in this industry. They do not have any knowledge of not only the State of Californias Laws, but also Federal Law and this is required if they are going to do business in the State of California, or quite frankly in any state.

***These directives are coming from LoanCares Underwriting department. LoanCare has trained their underwriters to commit these illegal acts, and as such needs to take full responsibility.

Their request on this particular file really doesnt surprise us, as they have also demanded that property tax liens ( also superior to the mortgage lien ) be paid outside escrow and be removed from title.

And just another Fun Fact for LoanCare in northern California utility companies lien the property every month and it is ALSO ILLEGAL to pay these outside escrow and remove those liens from title.

IT IS ILLEGAL TO REMOVE PROPERTY TAXES AND UTILITY LIENS FROM THE TITLE REPORT - EVER.

Since we end up having to file the same complaints on every file we have with LoanCare it is apparent they are not training their employees at all. Their employees do not know the difference between a lien and a financing statement, do not know how to read a HUD, are attempting to act as title and escrow ( which is a conflict of interest ), and do not understand Lien Priority. They have a training program that seems to be based on learning from their mistakes and CFPB complaints.

Please reference the following complaints that we have filed on LoanCare : XXXX XXXX XXXX I want them fined the maximum of $ 1Million and for them to undergo training to learn how to properly service their loans. If they are not able to perform according to California State Law, then they need to be banned from doing business in California.

CC : For ease, we are cross filing this complaint with the following organizations : 1 ) State of California Attorney Generals office 2 )  Congresswoman XXXX XXXX, House Financial Services Committee Chair

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