Consumer complaint received 2025-11-26 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: PLANET HOME LENDING, LLC
State: NY

Complaint narrative:
Planet Home Lending has submitted multiple contradictory and false statements about my FHA mortgage, and none of their actions comply with FHA servicing rules or federal loss-mitigation requirements.

First, Planet told federal and state agencies that I was approved for an FHA Permanent Modification. Their own letter states this modification capitalized {$26000.00} and set a new unpaid principal balance of {$310000.00}, with a new principal-and-interest payment of {$1900.00} and a 480-month term. 
However, my Planet customer portal shows a completely different balance of {$280000.00}, not {$310000.00} proof that Planets internal records, the numbers they report to regulators, and the numbers they show me are inconsistent and unreliable.

Second, Planet claims they evaluated me for a 30-year standalone modification. Their own Loss Mitigation Review Summary shows that every 30-year modification was Non-Approved. They told agencies I was approved for something their own system says I failed. This is a direct contradiction and appears to be falsified information.

Third, Planet admits in writing that they created this modification without using my income, without verifying my hardship, and without completing an FHA waterfall or affordability test. They told me that because they reviewed my file in XXXX they did not need to use the updated income documents I submitted in XXXX. You can not create any FHA modification without verifying the borrowers income. That alone voids the modification entirely.

Fourth a

nd this is where the numbers expose the misconduct my actual previous mortgage payment was {$2900.00}. Planet is now claiming that under their supposed modification plan, my new payment would be {$1900.00}, but that {$1900.00} figure includes only principal and interest. Planet did not include taxes, insurance, or escrow all of which FHA requires to be included in a modified mortgage payment ( PITI ).

When these mandatory charges are added back in, the true modified payment is over {$3000.00}, which is higher than my original payment and completely fails the FHA affordability test that requires the use of verified borrower income. This confirms Planet never evaluated affordability, never calculated DTI, and never performed the FHA waterfall. 

Fifth, Planet created this entire modification without ever contacting me, reviewing income, or discussing any terms. My customer portal shows no modification documents, no application history, and nothing I agreed to. Planet never verified income, never calculated DTI, never did an escrow analysis, and never completed a required FHA waterfall review.

After inventing this unverified modification, Planet never sent me any letter, notice, or documentation about it. I only learned that they created this so-called modification because the agencies I contacted forwarded me copies of what Planet had sent to them, not to me. Planet never communicated these terms to me directly, never disclosed any modification documents in my portal, and never provided anything for me to review or agree to.

Despite that, Planet stated to agencies that if I did not agree to this fabricated plan by XX/XX/XXXX, they would accelerate my loan and proceed toward foreclosure. No lender is allowed to create terms without the borrower, hide the terms from the borrower, and then threaten foreclosure for not agreeing to documents the borrower never received. This violates HUD Handbook 4000.1, RESPA 1024.41 ( g ), and CFPB dual-tracking protections.

Planet has also submitted wildly contradictory statements across different agencies, including : claiming I was approved for a 30-year modification claiming I was approved for a 40-year modification claiming I was denied due to insufficient reduction claiming I was denied due to borrower inability claiming I was approved for assistance claiming they were still reviewing claiming they never received documentation claiming they resolved hardship claiming I refused to cooperate None of their explanations match each other, and none match the data in my account.

At no point did Planet : review updated income verify hardship calculate a proper DTI ratio follow the FHA waterfall provide a real modification offer send required disclosures follow RESPA timelines comply with dual-tracking rules provide accurate accounting communicate any terms to me directly Planets actions appear deceptive, contradictory, and outside every FHA, RESPA, and CFPB guideline. At minimum, this requires immediate federal intervention, a full servicing audit, and a halt to foreclosure activity until compliance is verified.

Company response to consumer: Closed with explanation