Consumer complaint received 2019-08-25
Company: Freedom Mortgage Company
State: NY
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
In XX/XX/XXXX I requested and was promised a VA mortgage payment of {$2200.00} monthly by XXXX XXXX XXXX ( XXXX ) out of XXXX, NY. This included taxes and insurance. I was told the taxes would be around {$14000.00} a year. The insurance would be around {$2500.00} a year. These numbers were estimates but proved to be accurate. 

The house cost {$310000.00}. We borrowed {$330000.00} with {$20000.00} down payment. The house was damaged in super storm XXXX, the lower level needed extensive work. The house had no heat or hot water. No washer/dryer. The lower level had no walls, floors or electricity. The lender ( XXXX ) requested access to the house to hide the damage and was given permission. They said the VA might want to inspect the house and would deny the loan if they saw damage. They covered the walls with paneling and the floors with linoleum. It looked okay. They wanted me to pay for this. 

After extensive background checks we closed on XX/XX/XXXX. At the closing we were told the VA loan was denied and we were offered an FHA loan for $ XXXX monthly payment. No warning of the change was provided. We accepted this loan under protest. The additional {$300.00} would be hard for me to pay. I immediately began working on the house. After 7 months and {$40000.00} more invested we moved in. 

Almost one year to the day I was called by Freedom Mortgage ( they acquired XXXX XXXX XXXX after my closing ) and was told there was some miscalculations with my loan and my monthly payments were going to be raised to {$3300.00} per month. An {$800.00} increase. There was nothing they could do. I was destroyed. I could never afford that payment. I would have never been approved for that payment. 

I tried calling my mortgage broker, XXXX, she was let go after the takeover by Freedom Mortgage. Since that phone call from Freedom Mortgage in XX/XX/XXXX, I have been  fighting to stay in this house. I have worked with 3 different law firms. I am currently in a financial assistance program with Freedom Mortgage. They told me last month my request is denied. They want me out. My next/last court date is scheduled for XX/XX/XXXX. See attached. 

After going back and reviewing the closing documents, I discovered the taxes were estimated at {$300.00} per month. See attached 1st payment due has taxes and insurance estimated. That is wrong. I believe they were intentionally lowered to get me approved. After one year they were corrected to {$1200.00} per month. That is the {$800.00} increase that I could never afford. They did this to me knowingly. 

They say they have no record of my closing or my first year payments. I have provided them documents to support this and they still say no. They don't believe me. I have attached my 1st 3 payments. I made this exact payment for one year until the mortgage was increased to {$3300.00} After that I could not afford the increase. Please help me.

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