Consumer complaint received 2026-07-15 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: FL

Complaint narrative:
LoanCare denied my FHA loss mitigation application under a program that is no longer active, for a reason its own records disprove, on a loan where LoanCare already approved a partial claim it never finalized. Follow-up to CFPB Complaint ID XXXX. Loan XXXX | FHA Case XXXX | XXXX XXXX XXXX XXXX, XXXX FL XXXX ( primary residence ) | Foreclosure : XXXX XXXX XXXX XXXX XXXX XXXX, No. XXXX ( XXXX XXXX. XXXX ) THE UNFINALIZED PARTIAL CLAIM XX/XX/XXXX : LoanCare approved a {$12000.00} partial claim. I accepted, signed XX/XX/XXXX before LoanCare 's own mobile notary, and XXXX it on its prepaid label XX/XX/XXXX, eleven days before its XX/XX/XXXX deadline. It passed LoanCare 's quality control XX/XX/XXXX. LoanCare never finalized or recorded it ; no HUD subordinate lien exists in XXXX XXXX XXXX On XX/XX/XXXX HUD confirmed in writing that no partial claim is on file and LoanCare must submit corrective documentation. On XX/XX/XXXX a rep acknowledged the error and said foreclosure was suspended. Had it been finalized, the loan would have been current in XX/XX/XXXX. The {$48000.00} now demanded up from {$38000.00} in XX/XX/XXXX exists solely because of LoanCare 's inaction. THE XX/XX/XXXX DENIAL ( Form XXXX ) I applied XX/XX/XXXX ; LoanCare denied XX/XX/XXXX. 1. RETIRED PROGRAM. I was evaluated for " Recovery Modification-Trial, '' a COVID-19 Recovery Option. That is not an active FHA program and was not available on the date of the determination. I ask LoanCare to identify the specific policy, and its effective date, under which it evaluated me. The notice names no option in the operative waterfall : not standalone partial claim, standalone modification, combination modification/partial claim, or payment supplement. 2. TRIAL NEVER OFFERED. I was denied at the trial stage of an option never presented to me : no terms, no chance to accept or decline. 3. THE REASON IS FALSE. Sole reason : " You have not made 4 or more principal & interest payments. '' LoanCare 's own Customer Account Activity Statement dated XX/XX/XXXX shows {$2800.00} applied to the XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX installments, net of XXXX reversal. My bank statements show XXXX more {$2800.00} debits by " XXXX LOANCARE XXXX - TYPE : XXXX XXXX '' clearing XX/XX/XXXX and XX/XX/XXXX. That is XXXX. The same statement shows the loan transferring from XXXX XXXX on XX/XX/XXXX, so the first three went to the prior servicer. A servicing transfer does not reset the payment count. The notice states no measuring period. By phone XX/XX/XXXX LoanCare said " XXXX payments since origination '' a different condition. A threshold with no measuring period is not a specific reason under 1024.41 ( d ). XXXX. CONTRADICTION. The notice says payment " was due on XXXX, '' yet two payments cleared to LoanCare in XX/XX/XXXX and XX/XX/XXXX. Either they were applied and the due date is wrong, or LoanCare must account for funds it took. XXXX. NEVER SENT TO ME. On XX/XX/XXXX a rep acknowledged the denial was communicated without the required written decision. The document I am appealing is an internet reprint I obtained myself. It states no appeal right, no deadline, no method, just a phone number. XXXX. DEFECTIVE ADVERSE ACTION. The notice says a XXXX score influenced the decision, then reports it as " XXXX, '' created " N/A, '' all XXXX adverse factors " N/A. '' XXXX is not a credit score. XXXX. STEERED TO DISPOSITION. After denying one inactive program, the notice jumps to Short Sale and Deed in Lieu, skipping the home retention waterfall entirely, including the partial claim LoanCare itself approved. STATUS I filed a timely XXXX ( h ) appeal XX/XX/XXXX ( attached ). My Fifth Supplemental Notice of Error, receipt confirmed XX/XX/XXXX, raised the payment-count and transfer-reset errors and is unanswered. LoanCare said foreclosure was suspended XX/XX/XXXX, denied me XX/XX/XXXX, and XXXX 's counsel has moved for final judgment. I also received notice of a servicing transfer effective XX/XX/XXXX naming LoanCare as both current and new servicer.

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