Consumer complaint received 2025-07-02 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: LoanCare, LLC
State: NC

Complaint narrative:
I am a 100 % permanently and totally XXXX XXXX XXXX veteran, a single father with full custody of two children, and the caregiver for my elderly mother. I am 8 months behind on my VA-backed mortgage due to involuntary job loss when my employer dissolved in XX/XX/year> after I served as a XXXX XXXX XXXX XXXX XXXXXXXX earning {$220000.00} annually. Since then, I have applied for over XXXX jobs while surviving solely on VA XXXX compensation ( XXXX XXXXXXXXmonth ). I am actively seeking employment to resume payments and save our home. 

I submitted a complete hardship forbearance application on XX/XX/year>, and again on XX/XX/XXXX and XX/XX/XXXX, with a supplemental hardship statement explaining my situation. My LoanCare portal confirmed my package was complete in XX/XX/year>, and I was approved for a 1-month forbearance, during which I was told by LoanCare that my XX/XX/XXXX foreclosure hearing would be suspended while my hardship and modification review were active.

However, after being asked to complete a new modification application over the phone in XXXX, my LoanCare portal changed to Records Not Found. I confirmed with the court that LoanCare has not filed anything to suspend or continue the XX/XX/XXXX foreclosure hearing, which remains scheduled. The Clerk advised me only the lender can pause the hearing, but LoanCare has stated they do not handle legal matters, leaving me unable to protect my home despite trying to resolve the delinquency in good faith.

Additionally, foreclosure service was done by taping a notice to my door by a private courier, not by a sheriff or certified mail. I was home at the time, was not asked to sign, and only found out about the foreclosure through eCourts and the paper taped to my screen door, raising concerns about improper service during an active hardship review.

I have repeatedly emailed and called LoanCare requesting : Written confirmation that my 1-month forbearance remains active.

Confirmation that my new modification application is active, with the submission date and reference number.

Confirmation that foreclosure is paused, and that their attorney has been instructed to continue or withdraw the hearing while my review is pending, per RESPA ( 12 CFR 1024.41 ) and VA servicing guidelines ( VA Handbook M26-4 ).

I have received no clear written response, and I am concerned LoanCare may proceed with foreclosure during an active hardship review, which would violate federal protections against dual tracking. My children and elderly mother will have nowhere else to go if this happens, and we will become homeless despite actively working to resolve this. I am not refusing payment and am willing to resume payments or partial payments immediately upon employment. I have requested a deferral or modification to move arrears to the end of the loan while resuming payments. I am only asking for the protections the law provides while I stabilize my familys situation in good faith.

Attached are : - My complete hardship application submitted XX/XX/year>. 
- My supplemental hardship statement submitted XX/XX/year>. 
- Screenshots showing repeated submission emails were never opened by LoanCare. 
- Screenshots of the LoanCare portal showing the Complete Package status and subsequent Records Not Found.

- Court screenshots showing the XX/XX/XXXX foreclosure hearing is still scheduled.

I am requesting the CFPBs assistance to : 1 Ensure LoanCare provides clear written confirmation of my active hardship/modification review status.

2 Confirm foreclosure and the XX/XX/XXXX hearing are paused while my review is pending. 
3 Require LoanCare to comply with RESPA and VA guidelines to prevent wrongful foreclosure during an active review.

4 Assign a single point of contact to provide clear, timely updates and protect my familys stability while I work to resolve this debt responsibly.

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