LoanCare, LLC Foreclosure Defense

According to their website, LoanCare, LLC is a sub-servicing partner that is focused on helping people achieve homeownership in the years after they obtain an original mortgage loan. The support they offer is through a team of experts in payments, escrow, taxes, insurance, and more. LoanCare states that it helps borrowers once loan origination has ended and servicing begins. Their website also states that it is okay when borrowers face financial hardship and that they are there to help.

LoanCare works with almost 1.5 million customers every year across all states and territories within the United States. The company’s website also states that they helped 400,000 customers stay in their homes during the pandemic when so many homeowners faced financial hardships. Unfortunately, LoanCare is not always interested in helping homeowners. The company often violates the rights of borrowers and engages in unfair practices. Below, our Fort Lauderdale foreclosure defense lawyer explains what these are.

LoanCare Fined by the Consumer Financial Protection Bureau

In 2015, the Consumer Financial Protection Bureau (CFPB) found LoanCare guilty of deceiving customers in deceptive mortgage ads. Along with Paymap, Inc., LoanCare was found guilty of deceiving customers into signing up for a program that advertised it would help customers save thousands of dollars in interest and help them pay off their mortgages faster.

Paymap along with LoanCare told customers that if they signed up for their Equity Accelerator Program, they could save over $33,000 in interest by making payments on their mortgage biweekly rather than monthly. Few customers were allowed to make the more frequent payments and even fewer were granted the interest relief. To make the situation worse, customers had to pay $295 to enroll in the program and were charged a $2.50 transaction fee for every debit made.

Both Paymap and LoanCare were charged with violating the 2010 Dodd-Frank Act, and LoanCare was forced to pay a $100,000 civil fine. Neither Paymap nor LoanCare has admitted or denied guilt.

Loancare’s Deceptive Practices For Loss Mitigation

Loancare’s loss mitigation process has been marred by deceptive practices that frustrate borrowers and delay critical assistance. Borrowers often experience excessively long hold times, making it difficult to reach a representative when they need help the most. Additionally, when they finally get through, they are often subjected to improper voicemail transfers, leading to dead ends instead of the assistance they were seeking. Even when borrowers manage to communicate with someone, Loancare exacerbates their frustrations by repeatedly requesting documents that have already been submitted, further wasting time and hindering the progress of their loss mitigation efforts. These practices create unnecessary obstacles for borrowers already facing financial distress, highlighting serious issues within Loancare’s approach to loss mitigation.

Improper Service Release

LoanCare has recently taken over the servicing rights of several large loan portfolios. This is known as a service transfer or service release. Unfortunately, those service releases are not going well. Many homeowners were in the midst of loss mitigation reviews when LoanCare purchased their mortgage loan from a larger financial institution. Suddenly and unexpectedly, LoanCare was now in charge of many homeowners’ loss mitigation applications.

LoanCare then told people that their loan file was transferred and that they would simply pick up where the original lender left off. Unfortunately, that was not the case the majority of the time. Instead, files sat stagnant in LoanCare’s system. They were not assigned to anyone and nothing was proceeding in these cases. Documents expired while fees and delinquencies continued to accrue.

The representatives on the front end often did not even have access to read the notes within the file to determine what was happening. Homeowners often called the company only to be told that everything in their file was fine and complete. Regardless of these assurances, nothing would happen and eventually homeowners would receive a foreclosure notice.

Many customers are still struggling with this problem and they often had their previous loan serviced by ServiSolutions. ServiSolutions is the largest bank that has most recently sold loans to LoanCare. Without aggressive intervention from a Fort Lauderdale foreclosure defense lawyer, many of these files are still not moving forward.

Long Hold Times

Customers who want to contact LoanCare often find that it is an incredibly difficult thing to do. Even during business hours, customers who call find that they must wait anywhere between 20 and 45 minutes before finally reaching a representative.

This could indicate that LoanCare has a disproportionate number of representatives to the number of loans they service. Or, it could show that LoanCare is simply hoping that people get tired and give up. When this happens, companies such as LoanCare hope that customers continue to become frustrated and simply stop taking action. This may allow LoanCare, and companies like it, to proceed with foreclosure.

Improper Voicemail Transfers

Another tactic LoanCare uses is to transfer customers to voicemail. Customers call and wait for a very long time just to speak to someone. When a representative comes on the line, they then tell customers that they are going to be put on hold momentarily. Instead of being placed on hold, customers are often transferred to voicemail. After leaving a message, the customer does not hear back from the company. Customers are also not told that they are being transferred to voicemail instead of waiting to speak to an actual person.

Again, LoanCare may use this tactic to frustrate customers and give up on ever trying to speak to someone at the company. This is a dishonest tactic and when LoanCare uses it, you should speak to a foreclosure defense lawyer.

Wasting Time with Document Requests

If you have any type of loss mitigation package being reviewed for a decision, such as a repayment plan, modification, deed in lieu, or short sale, the lender or company will inevitably request separate documents. This is not unusual. It is also not deceptive or dishonest. All lenders request additional documents but they should ask for them all at the same time. Sometimes, lenders ask for this additional information piece by piece, and LoanCare has been known to do this.

By asking for documents one at a time, the company can delay certain elements of a case. They may even be able to delay a borrower’s loan modification and then proceed with foreclosure. This is a deceptive tactic and it is important to know when it is happening.

Our Foreclosure Defense Lawyers in Fort Lauderdale Can Hold LoanCare Accountable

If your mortgage loan is being serviced by LoanCare, you likely need the help of a Fort Lauderdale foreclosure defense lawyer. At Loan Lawyers, our knowledgeable attorneys can contact LoanCare on your behalf and provide the aggressive representation you need to ensure the company acts honestly and in good faith. Call our Florida foreclosure defense lawyer now at (954) 523-4357 or contact us online to request a free consultation and to learn more.