Consumer complaint received 2025-11-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: LoanCare, LLC
State: TX

Complaint narrative:
XXXX XXXX # XXXX In XX/XX/XXXX, I applied for a HELOC loan with my credit union XXXX During that process, I discovered that XXXX/LoanCare ( Loan # XXXX ) had sent my past-due mortgage payments into a lien with HUD. This action was taken without any notification to me, and despite repeated assurances from XXXX/LoanCare representatives that all past-due payments would be moved to the end of my loan term. Since COVID, there were periods when either my husband or I were not working, so I requested and was approved for forbearances from XXXXLoanCare in XXXX, XXXX, and XXXX. I have written approval letters for each of these forbearances. Each time I was ready to resume payments, I contacted XXXXLoanCare, and their customer service representatives explicitly told me that the past-due balances would be moved to the end of my loan, and that I only needed to resume making regular monthly payments. I followed their instructions in good faith. I am now being told that my past-due balances were not moved as promised, and that my loan is in the foreclosure forecast. When I called XXXX/LoanCare to discuss this, I was told that I must either ( 1 ) pay all of the past-due balances in full immediately or ( 2 ) go into foreclosure. This makes no sense, as the entire reason I requested a forbearance was due to financial hardship. If I had been able to pay all of the past-due balances at once, I would not have needed the forbearance in the first place. Furthermore, XXXX/LoanCare representatives insisted on placing me into yet another forbearance, even after I made it clear that I am able and willing to make regular monthly payments. They refused to discuss the HUD lien, acknowledge the misrepresentations made to me, or provide any transparency on the matter. I have also sent multiple emails to XXXXLoanCare and none have received a response. I believe these actions represent predatory servicing practices and a failure to provide clear, accurate, and timely communication to me as a borrower. I am requesting that the CFPB review XXXX/LoanCares handling of my loan, require them to honor the original terms communicated to me ( moving past-due balances to the end of the loan ), and provide full transparency regarding the lien with HUD. 

The company responded by denying part of my claim and stating they never informed me that my account was entering foreclosure. This is inaccurate. While there was no written communication, their representative stated multiple times during a phone call in XXXX that foreclosure was imminent. I recommend the company expand their review to include recorded phone conversations from that time, where the representative clearly made these statements. My intended outcome is for the company to acknowledge that a representative did state my account would enter foreclosuredespite this now being confirmed as untrue. I also request that the representatives I spoke with in XXXX receive appropriate training, that I be provided with a written letter confirming my account is not scheduled for foreclosure, and that the approved forbearance payments be properly applied to the end of the loan. 

New Case I am writing to request an update on my original case regarding the transfer of my forbearance balance to the end of my loan term. I resumed making my regular monthly payments several months ago, yet each time I contact XXXX/LoanCare, I am repeatedly offered additional forbearances, which I do not need. 
My intention is simply to move the past-due forbearance amounts to the end of the loan, as I am now employed and able to continue making my payments. Despite calling customer service multiple times, I am consistently told that my only option is to enter another forbearance. 
In addition, I emailed the XXXX/LoanCare Loss Mitigation Department on XX/XX/XXXX to inquire about my past-due forbearance balance, and I have not received a response. 
My XXXXLoanCare online account also appears restricted. I can not view my profile, letters, or documents ; the only available action is to apply for another forbearance, which is not needed for my situation. 
I do not understand why I was approved for a forbearance, then notified that my loan was in default, then offered another forbearance, and then informed that my forbearance balance was sent to HUD. For months, I have been trying to resolve this by having the existing past due forbearance balances moved to the end of my loan term, yet I am continually placed back into the same cycle. 
I respectfully request that this matter be reviewed and my past due forbearance balances be moved to the end of my loan term, and that my account access be restored so I can view my loan information and communications.

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