If LoanCare is your mortgage servicer and you need help with modifying your loan, it can be an uphill battle to get the help you deserve. I’ve helped many homeowners with their LoanCare loss mitigation problems and I list some of the solutions below.
You’ll learn how to work more effectively with their customer service department, and you’ll have a better chance of getting your loan workout approved.
Here Are The Most Common Issues With LoanCare Loss Mitigation
Uninformed “Customer Care” Representatives
When you call to get an update on your loss mitigation review or ask questions about your loan, you might get the feeling that the people on the other end of the line don’t know the answers to your questions or don’t have access to the information they need in order to give you correct information.
Ask for a transfer to the loss mitigation department. Make sure that your first question is always “Am I in the loss mitigation department?” If the answer is no, ask them to complete a warm transfer to a human in the loss mitigation department.
A customer care representative at LoanCare may try to prevent this from happening. You can expect them to say that “they have access to all the same notes” and “they can help you” but the chances of them not knowing how to interpret the information attached to your file (and the chances of you getting wrong information) are high.
Always make sure you are with a representative in the loss mitigation department before you start getting information.
When you call to get an update on your loss mitigation review or ask questions about your loan, you may hear different things from different representatives each time you call.
Ask them to read you the actual notes attached to your file. Bad information is more likely to be shared if you let the representatives read the notes made on the account and then translate them to you.
The people making the notes to the account are the actual decision makers, but the people telling you the information are usually less informed people. To get the most accurate information, you want to hear the actual note they made on your file, not the note as translated by the representative you’re speaking to. Always say “can you read me the exact note on my file please?”
Phone Tree Nightmares
When you call LoanCare, their automated message always says their hold time is long and then you get hit with a barrage of different options to select, none of which directly gives you an option to talk to someone about your loss mitigation review.
Get to the first live person possible and then ask for what you need. If you’re having trouble determining what option you should select, forget trying to figure that out and just push any button that is going to connect you to a person. The goal is to get to a live person as quickly as possible and then tell that person to warm transfer you to a live human in the loss mitigation department. Departments that are most likely to get you a live person quickly are the insurance department, escrow department, and the “order a payoff” department.
Re-Routed Away From Loss Mitigation Representatives
Let’s say that you successfully call the loss mitigation line directly.You get a loss mitigation representative on the phone, but unknowingly, they automatically route you back to the customer care department.The customer care representatives won’t identify themselves as such and you will think you’re talking to a loss mitigation representative until about halfway through the call.
Ask immediately whether you’re in the loss mitigation department as your first question so you don’t waste time: Before you have a long conversation with someone who is not in the right department to provide you an update, always ask first if they are in the loss mitigation department. If they say no, ask them to complete a warm transfer to a loss mitigation representative.
Your Loss Mitigation Application Package Is Never Complete
You may find yourself sending in the same thing over and over again. Each time you call for an update, you may be told that the documents you sent aren’t received or that they’re “still being requested.” It may feel like LoanCare is purposely trying to stall the entire process in order to delay the review and create so much frustration that you eventually give up.
Ask them to read you the actual notes attached to the rejection of your documents, not just summarize them for you: One thing that may be causing a problem is that the representative is telling you to just “re-send” something without telling you what the problem is. Often, representatives just say “this document was rejected, resend it” but you need to push back and say “I need to know WHY it was rejected, please read me the actual notes about what’s wrong with it.” They will then tell you the reason. Then, when you send the document again, you can fix the actual issue instead of just re-sending the same thing.
Use Letters of Explanations to explain unusual things that could be causing the documents to get rejected. Whenever there is something unusual, if banks aren’t made aware of it in writing, they will continue to keep saying that the file is “incomplete.” So if you have something unusual going on with your documents, you need to explain it in writing.
A common example of this is – banks usually request two pay stubs to cover a 30-day period of income information. If you are someone that gets paid only once per month, you will only have one pay stub to give them. They may not check the dates on your one stub and thus keep requesting two pay stubs over and over. You would need to draft and send a letter explaining the unusual circumstance (that you only have one stub but it covers a full 30-days) to get past this document request.
Use Letters of Explanations to explain why there is a lack of required document(s): Sometimes, lenders will keep files in an incomplete status because you don’t have something that is required. They will view it as incomplete even if the document doesn’t exist. For example, if you don’t have a bank account, you won’t be able to send in bank statements but unless you send them a letter in writing telling them that bank statements don’t exist, they will continue to request them.
They Fail to Return Voicemails
You may be given assurance that a supervisor or an escalation manager will return your call and address your concern if you leave them a Voicemail but the callback never comes. It may feel like LoanCare is just trying to quickly get you off of the phone by promising you a call that never arrives.
Don’t rely on anyone returning your Voicemails, just continue to wait on hold: Unfortunately, in the world of loss mitigation (particularly if you have a big lender like LoanCare) – leaving a Voicemail is pretty much a lost cause. The lender representatives are so overworked, it is uncommon to get Voicemails returned. If you’re ever offered the option to leave a Voicemail or just wait on hold, always choose to wait for a live transfer on hold instead of leaving a Voicemail.
Your Online Portal Doesn’t Work
LoanCare may not be allowing you to make payments online through your online portal.
Understand that your portal may be disabled if you’re currently in loss mitigation review / rely on phone and mail: If you’re undergoing review for a loan modification, short sale, forbearance transition or other workout plan, LoanCare has likely disabled your online portal. They are allowed to do this (and typically do) if the loan is in default, as they don’t want you making partial payments until the default is resolved and you are back on a formal agreement to resolve the default.
If you are approved for a Trial Payment Plan (TPP), it may seem like you should be able to pay through your portal but you likely can’t because the TPP in and of itself doesn’t resolve the default. The online portal won’t be active again until your final modification gets fully applied to the account. You should be prepared to call in for TPP payments (or mail payments) instead of using the online portal until your default issue is fully resolved.
You’re Repeatedly Told a Supervisor Is “Not Available”
If you’re not able to get the information you need from the customer service representative and you ask for a supervisor, you may be told that no one is available to take your call.
Say “you understand” but you’re going to wait for a supervisor to become available. It is common practice for lenders (especially LoanCare) to lie and say that there isn’t a supervisor available in an attempt to get you to give up and hang up. If they say that to you, remain calm and just reiterate what you’ve been through, why it’s important for you to speak with a supervisor now, why time is of the essence and that you’re more than willing to hold for a supervisor.
Essentially, push back on them telling you that there isn’t one available and make it clear that you will not be the first one to hang up.
Working with LoanCare LLC can seem like a nightmare. Getting through to the right person can take forever. Understanding why your loan modification package isn’t moving forward can be a complete mystery. But by following the advice above, or working with a mortgage attorney like myself, it is possible to get through the LoanCare loss mitigation department and come out with an agreement that works for you.
Please feel free and reach out to me directly at (425) 654-1674, or share your experience below in the comment section.