Consumer complaint received 2018-04-10
Company: Freedom Mortgage Company
State: SC
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I started this process back in XX/XX/2017 when I applied for a short sale, and we still havent come to a resolution. This delay has caused longer delinquency. 

The FHA value ( loss mitigation appraisal ) was obtained in XX/XX/XXXX but then they took over a month to send us copies of the appraisal report. When they sent us the appraisal that was 2 years old, from my purchase. We responded promptly telling them this was a two year old appraisal, while they were using it to display current market value. This caused us delays on responding to the counter offer and the lender closed the file out not allowing us ample and reasonable opportunity to respond. 
When we did finally get the correct report we decided to file an appraisal rebuttal because the appraiser was extremely inaccurate and placed a very high, turn key value on the property. He used comparables that were in immaculate condition to reach his false value. Both the buyer and sellers agent ( my agent ) worked very hard on this. The appraiser failed to note or photograph any of the damage from Hurricanes Irma and Matthew which caused much damage to the interior, as well as water intrusion that had resulted in widespread mold growth, which was visible. We responded with the value dispute docs immediately ( supported by photos, licensed home inspection reports, & several contractor estimates ) but the lender let those docs sit without being reviewed by anyone for over a month ; contrary to the initial disclosures we received to the contrary assuring us the value dispute was in review. 
Their next excuse for not deciding on our value dispute was that they needed the short sale to be resubmitted with updated docs ; even though the lender closed the short sale in error originally. 

Most recently we have been working with a supervisor for over a month who has been trying to get the VP to respond on ordering a new valuation ( appraisal ) since theirs is over 6 mths old, and inaccurate / incomplete ; not to mention the damage to the property that occurred after their appraisal. The VP never responded and we ended up having to go over his head to try to get a response. 
Lastly, and most recently, there are notes on the file claiming they couldnt decision the new appraisal order because they needed the short sale package to be resubmitted ( again ) because I called in asking about foreclosure and options for a potential loan mod in case the short sale did not go through. I signed a statement saying that I wished to proceed with the short sale despite asking about alternative options and we were assured back then the file was opened back up in active short sale. This was several months ago and we are not getting any responses or communication from Freedom Mortgage.

I am now sitting wondering if foreclosure is eminent, however my Realtor is checking with the county master in equity courts regularly to check on this for me. The whole reason I applied for this short sale was because I suffered a hardship and accrued an overwhelming amount of medical bills, thus causing my delinquency. While I was getting treated, my house was damaged by two hurricanes and it has continued to decay as the days pass, mostly due to moisture damage and mold growth. I am concerned now that the lender is ignoring our requests for a short sale, and ignoring our petition to order a new appraisal because the old appraisal was very inaccurate and expired. This is why I am filing a complaint against Freedom Mortgage to help with my short sale process.

Side Note : This is now our third offer / buyer. They want to buy the property and this delay is also unfair to them. The previous buyer ended up backing out due to lack of progress with the short sale. 

Thank you in advance for any help you can provide.

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