Consumer complaint received 2018-07-31
Company: Freedom Mortgage Company
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Chief Complaint : Misappropriation of payments to the account, and not honoring foreclosure alternative agreement. 

My mortgage was initially serviced through XXXX before it was transferred to Freedom Mortgage in XXXX of XXXX. My original mortgage payment amount was {$1500.00}. Since the transfer, I have been dealing with issues on how my account is being handled. My account was current with XXXX up until XXXX of XXXX ; all mortgage payments were paid accordingly and on time. In XXXX, Florida was impacted by Hurricane Irma, which prompted many homeowners to contact their mortgage companies for a 3-month forbearance. I was one of them. On XX/XX/XXXX, I approached XXXX and spoke with a representative and asked that my account is placed in forbearance. It was approved. I was then told that all payments would be due in XXXX, and should I have any problems making the payment that they will assist me with Loss Mitigation. 

On XX/XX/XXXX, I contacted XXXX and asked to start the Loss Mitigation process for the past due balance of {$4500.00}. However, I made a payment of {$1500.00} over the phone for XXXX. I then received a letter from XXXX dated XX/XX/XXXX, stating that I was approved for a foreclosure prevention alternative. The offer listed on the note said that I was to make three trial period payments of {$1300.00} for XXXX, XXXX, and XXXX of XXXX to qualify for a permanent modification. I signed the document and sent it back to XXXX on XX/XX/XXXX within the 14-days of the notice. For XXXX and XXXX, I made the payment within the period stipulated to XXXX, however, my account was then transferred to Freedom in XXXX of XXXX. ( Around that timeframe I received a letter stating that my monthly mortgage will now be {$1300.00} effective XX/XX/XXXX. ) On XX/XX/XXXX, I called Freedom Mortgage and spoke to a gentleman who stated that Freedom would be honoring my payment modification and the Loss Mitigation application. After feeling a sense of relief, I made a payment with the representative of the modified amount {$1300.00}. As the months gone by, that was what I have been paying Freedom, until XX/XX/XXXX, I received a letter stating the I had until XX/XX/XXXX, to pay {$5700.00} for the overdue balance or my account will be placed in foreclosure. In my panic, I withdrew from my 401K and paid that amount on XX/XX/XXXX. That should have made my account current as of XXXX, and on XX/XX/XXXX, I made a payment of {$1300.00} for the month of XXXX. I proceeded to make my timely payment for the month of XXXX. However, my account was not updated to reflect what I have paid. In fact, I believe a good portion of my payments was placed in escrow giving me a high balance. 

As of XX/XX/XXXX, I have made a total of {$12000.00} payments to Freedom Mortgage from XXXX to XX/XX/XXXX. Prior to them, I made a total of {$4100.00} payments to XXXX from XX/XX/XXXX to XX/XX/XXXX. This is a combined total of {$16000.00} of mortgage payments made to my account. All of this is tracked and confirmed by bank statements since I pay directly from my bank account ( see Table 1 below ). Mind you, even if Freedom failed to honor the trial payments of {$1300.00} and was charging me the full mortgage amount of {$1500.00} for the months of XX/XX/XXXX through XX/XX/XXXX XXXX {$10000.00} ), and {$1300.00} from XXXX to XXXX XXXX {$5200.00} ), I still overpaid on my mortgage ( Table 2 )! The combined total of {$15000.00} due minus the total of {$16000.00} paid leaves me with an overpayment of {$600.00}! 
I contacted Freedom on numerous occasions and sent them a letter to investigate my account and still nothing has been done to correct this issue. I called and spoke to another representative on XX/XX/XXXX, and she stated that I still owe for the month of XXXX and XXXX, and soon XXXX. How is that possible? If I make the payments as they are claiming, I will have overpaid my mortgage by over a few grand! I really need Freedom to get my account to where it should be, and apply the payments correctly. I dont understand how they managed to XXXX this up. And every time I call, it is hard to explain this situation to the representative because they do not see what I see. This problem is affecting my good standing, and I need it rectified as soon as possible. 

Table 1 Total Mortgage Payments XX/XX/XXXX Total Mortgage Payments Posted Date Description Amount XX/XX/XXXX BP FREEDOM MORTG ACH W/D : BP FREEDOM MORTG {$1300.00} XX/XX/XXXX BP FREEDOM MORTG ACH W/D : BP FREEDOM MORTG {$1300.00} XX/XX/XXXX BP FREEDOM MORTG ACH W/D : BP FREEDOM MORTG {$5700.00} XX/XX/XXXX BP FREEDOM MORTG ACH W/D : BP FREEDOM MORTG {$1300.00} XX/XX/XXXX BP FREEDOM MORTG ACH W/D : BP FREEDOM MORTG {$1300.00} XX/XX/XXXX FREEDOM ACH W/D : FREEDOM {$1300.00} XX/XX/XXXX BP XXXX ACH W/D : BP XXXX {$1300.00} XX/XX/XXXX BP XXXX ACH W/D : BP XXXX {$1300.00} XX/XX/XXXX XXXX LOAN ADM ACH W/D : XXXX LOAN ADM {$1500.00} {$16000.00} Table 2 Total Monthly Mortgage Amounts Due XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

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