Consumer complaint received 2026-04-09 00:00:00
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Trying to communicate with the company to fix an issue with the application process
Company: LoanCare, LLC
State: TX

Complaint narrative:
CFPB COMPLAINT MORTGAGE SERVICING ERROR / WRONGFUL DELINQUENCY / FAILURE TO HONOR VA VASP APPROVAL I am filing this complaint regarding serious and ongoing mortgage servicing errors involving both my prior servicer and current servicer. This is a VA-backed loan, and the Department of Veterans Affairs ( VA ) is actively involved in this matter. I was approved for the VA Servicing Purchase ( VASP ) program, and the VA has confirmed that it paid the entirety of my loan on XX/XX/year>. I was also approved for a 2.5 % interest rate under this program. Despite this : My loan was wrongfully transferred as delinquent My current servicer claims they have no record of my VASP approval They are refusing to honor the 2.5 % VA-approved rate I am now facing foreclosure threats based on inaccurate information Trial Payment Plan & Full Compliance Beginning in XX/XX/year>, I entered into a trial payment plan as instructed by my prior servicer. During this time : I made all required payments on time ( XXXX, XXXX, XXXX ) I contacted the servicer every month I was consistently told : I was approved I was good to go There was nothing further required My loan would be in good standing by XX/XX/year> At no point was I told : That anything was missing That my loan was at risk That it would be transferred That it would be reported as delinquent Document Submission Errors ( False Claims by Servicer ) The prior servicer repeatedly claimed they did not receive my documents. This is false. Documents were notarized on XX/XX/year> Documents were delivered and received on XX/XX/year> ( deadline date ) I have multiple XX/XX/XXXXproofs of delivery confirming receipt This was the third time they falsely claimed missing documents To ensure accuracy : Notary services were completed on XXXX XXXX XXXX XXXX The notary official directly spoke with the servicer to confirm everything was correct I also completed notarization with a notary provided by the servicer There is no legitimate basis for claiming documents were missing or incomplete. Hardship and Extraordinary Effort to Comply During this process : My husband was in the XX/XX/XXXXfor two weeks My father suffered a XXXX I was pregnant with my XX/XX/XXXXchild while serving on XXXX XXXX orders Despite these extreme circumstances : I made every payment on time I submitted every required document I maintained constant communication I took extra steps to verify everything directly with the servicer I did everything required of meand more. Servicing Transfer Errors & Current Issues My loan was transferred to a new servicer as delinquent, which is incorrect. The new servicer is now : Claiming there is no record of my VASP approval Refusing to honor my 2.5 % VA-approved rate Stating the prior servicer is not communicating or providing records Continuing to treat my loan as delinquent Additionally : The prior servicer refuses to assist and says I am no longer their responsibility There has been a complete breakdown in communication between servicers Foreclosure Threats I have received communication from an attorney indicating potential foreclosure. This is extremely concerning because : My loan status is factually incorrect A formal Notice of Error has been submitted The VA has confirmed approval and payoff The account is actively disputed Foreclosure threats under these conditions are improper. Military Protection ( SCRA ) I am an XXXX XXXX service member in the United States XXXX XXXX. This loan is protected under the Servicemembers Civil Relief Act ( SCRA ), and any attempt to foreclose without proper compliance is a violation of federal law. What I want the company to do to fix the problem I am requesting immediate corrective action : Correct the loan status to reflect accurate, non-delinquent standing Honor the VA-approved VASP terms XXXX including the 2.5 % interest rate Stop all foreclosure activity immediately Ensure proper transfer of all records between servicers Provide written confirmation of my VASP approval and loan status Correct any negative credit reporting caused by this error This situation has caused : Severe emotional distress Financial strain Ongoing uncertainty regarding my home This issue exists due to servicer error and failure to properly process and transfer accurate loan information, not borrower noncompliance. I have documentation to support all claims, including : Proof of payments XX/XX/XXXXdelivery confirmations VA confirmation of approval Communication records I am requesting urgent review and resolution of this matter.

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