Consumer complaint received 2025-01-29 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: LD Holdings Group, LLC
State: AZ

Complaint narrative:
We sold a home in XXXX through a short sale. The lender was Loan Depot. What a huge mistake that was. They made nothing but mistakes throughout the entire process and gave vast amounts of misinformation. After we finally closed, I circled back to the VA to find out what our next steps are, since there was a " loss '' incurred, and it affects XXXX XXXX XXXXs entitlement usage that he will have available for the next home that we buy. The VA informed me that Loan Depot filed a claim ( expeditiously ) and they received a payout for their entire loss from the short sale ( over {$90000.00} ), which was paid on XX/XX/year> and was applied to our Loan Depot account as a " payment ''. They received the money for their entire loss plus interest, less than 2 months after closing. The VA confirmed that if we do decide to ever use the VA entitlement usage again on another mortgage in the future, we will either have to pay it back to get the entitlement usage free and clear, or we will require a XXXX XXXX down payment in the future. However, they made it very crystal-clear that they are NOT creditors. They do not forgive, cancel, or discharge debt. They don't even care if we pay that {$90000.00} back, because it only affects my husband 's entitlement usage. The VA doesnt require veterans to pay it back, and they dont classify it as a " debt ''. Loan depot then said they were going to issue a XXXX. This didn't make sense to me, because there was no debt discharged as they were paid back through the VA claim, in full. There was no " forgivable '' debt. I spoke to Loan Depot again today and tried to explain to them that a XXXX isn't appropriate in this situation, because there is no discharged debt, due to them recovering the funds through the VA guaranty claim. Loan Depot responded and said they were issuing a XXXX because they are " are required to file a XXXX for the amount of debt forgiven by the VA ''. I spoke to the VA again, and they confirmed yet again, that Loan Depot should not be issuing anything on behalf of the VA, and that the VA is NOT a creditor. They don't discharge, cancel or forgive debts. They leave it up to the veteran to pay back the loss, which goes towards their entitlement usage, or they can choose not to pay it back, and they just won't have as much entitlement usage for the next home purchase. The VA then told me to request documentation from the Lender for the " discharged debt " - which won't be achievable as there was again, no debt discharged. They recovered their funds and did not absorb a loss, they didn't collect on any IRS benefits, and Loan Depot issuing a XXXX would be inappropriate application by the lender. Multiple people have told me this, and I keep trying to get Loan Depot to listen and they are not listening. After everything I told them, and after all of the information the VA relayed to me, they still responded saying : " It is not up to the servicer to determine if a creditor will pursue a debt. The creditor can choose to forgive, cancel, or discharge the debt. Regardless of which approach the creditor chooses to take, the servicer is mandated by tax law to file a XXXX. '' They quite literally are regurgitating the same information and not actually listening to what I am telling them. I have said multiple times that the VA is not a creditor and doesnt discharge a debt. Which leads me to believe they are being intentional in making this mistake. I truly don't even know if they have actually read any of the information that I have relayed to them. I have sent them plenty of information as to why I don't believe we are supposed to receive a XXXX, and they keep responding with the same response. The VA said they don't forgive debts, and even if that was the case ( which its not ), then the XXXX would come from the VA, not the lender. I told Loan Depot I believe they are about to make a mistake, and I would really like them to stop and actually listen to what I am telling them to avoid causing more issues for us, especially because this is not the first mistake they have made. I have had to file CFPB complaints against them a handful of times, dating all the way back to when we still lived in the house. We have been fed bad information since the origination of this loan. The only reason the XXXX got brought up, was because someone in the VA, who had nothing to do with our short sale, asked the question, because we were confirming that it was not required. Loan Depot came back and said they will be issuing one, and that's what started this entire issue. If Loan Depot 's responses made sense as to why they were issuing a XXXX, I would accept the response... but their responses are not making any sense. They keep calling the VA a creditor, saying that they are issuing it on behalf of the " debt that the VA forgave '' when the VA is not a creditor, and they don't forgive " debts ''. I can not say this enough. I don't understand how a lender can file a XXXX for a discharged debt, when they got their money back through XXXX XXXX XXXX guaranty program/entitlement usage, and there was no outstanding debt to discharge... they didnt discharge any debt! And they are potentially creating more work for us, when it may not even be necessary. I feel like I am talking to a wall. They keep telling me they're " closing my complaint '' without actually addressing the information I have relayed to them. I have told them why their responses are not making sense.

Company response to consumer: Closed with explanation